Wednesday, April 29, 2015

Stock Purchase: HCP --- $16,000 Forward Passive Income


Today I added more shares of HCP.

  • HCP:  120 shares @ $41.73 --- Yield 5.42%

Total capital invested is 5014.55 and will increase my dividends by $271.20. I have not added to my position since late 2013 so I feel it is ok to increase my REIT holdings.  Today's purchase increases my total share count to 330 shares and will pay me roughly $745 a year in dividends. HCP  also represents about 3.33% of my total portfolio.

As a side note, I just passed $16,000 in forward passive income assuming no further dividend cuts. Right now I believe my holdings are secure. This is another conservative purchase and I will continue to make mostly safe and boring purchases for the duration of the year.

My current intentions are to reach $17,500 in forward passive income by year end.

DEFY MEDIOCRITY

19 comments:

  1. Nice purchase, MDP. Ive been looking at HCP as well...would love to buy here.

    Congrats on passing the $16K in forward passive income. Thats phenomenal!!

    R2R

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    Replies
    1. Roadmap,

      Thanks. I will hopefully be curtailing my purchases going forward. I keep saying that I need to rebuild my cash account and finally I am going to follow through.

      MDP

      Delete
  2. Awesome purchase MDP. I like the quality REIT play. That should fuel your hunger for yield. I like that approach. Congrats on 16000 forward income bud. Feels awesome fighting this fight.! You'll gonna do it up I'm sure. Thanks for posting and sharing with us. It's very motivating and inspiring. Take care my friend.

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    Replies
    1. DH,

      I may have jumped in a few hours early. :-) I agree with you on the quality REIT plays. No more ARCP for me. This company has paid dividends for decades like clockwork. The fight is fun and keeps me focused. I love all the ups and downs that come with building my empire.

      No regrets!

      MDP

      Delete
  3. That's awesome!

    Your goal for this year is $17,500 in forward passive income. What is you ultimate goal?

    Cheers!

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    Replies
    1. GYFG,

      Well my long term goals are fluid, but my four year plan can be found to the bottom right under the Hybrid FI Model. Essentially I would like to create a long term FI Model that incorporates dividends as well as a withdrawal plan. I will be slowing down my dividend purchases and refocus on building up my cash very soon. As we both know plans can change and evolve over time.

      MDP

      Delete
  4. HCP looks interesting and have been keeping an eye on it. $16,000 in forward looking dividend is pretty impressive. Congrats!

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    Replies
    1. Tawcan,

      Thanks. HCP is a good ole standby stock that I think is a pretty safe investment in the mid 5% yield range.

      MDP

      Delete
  5. MDP,

    Great job hitting $16,000 of passive income! That's an amazing achievement. I'm hoping to join you in this elite club in a few months!

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    Replies
    1. BGH,

      It will be nice to see you hit $16k. It is a difficult climb up the mountain with many victories and setbacks along the way as you well know. Every $1k over $15k becomes very life transforming. Keep up the great work yourself!

      MDP

      Delete
  6. MDP,

    Nice pickup. I was monitoring the REIT's today as well. My limit order for HCP didn't quite hit. I feel the HCR issues have been hanging over this stock for too long. Buying when others are fearful usually pays off.

    FD

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    Replies
    1. FD,

      Based on today's pullback, you may get the better price you are looking for. I probably jumped in a day or two early. Long term though it really doesn't matter too much to me. If it drifts down to the mid $30s I will pick up some more shares...the fear will really be high then. :-)

      MDP

      Delete
  7. MDP,

    Everyday, reaching new heights. Wow - congratulations my friend $16K, Straight lacing it. Making moves and such a nice position in a healthy REIT. Next stop... 17.5K.

    -Lanny

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    Replies
    1. Lanny,

      This journey has been and continues to be amazing. There have been many successes and pitfalls along the way. There will continue to be going forward, but that is just part of the great experience.

      I won't lie the higher I climb the more nervous and excited I become.

      MDP

      Delete
  8. I just started a position in HCP this week. I also bought HCN and VTR. These are my first REIT buys for my portfolio think they all have great long term prospects. I wasn't bothered by the recent troubles HCP is facing regarding tenant issues and a DOJ investigation into billing practices. At least the current yield can help offset some of the risk. Thanks for sharing.

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    Replies
    1. DivHut,

      Those are some good looking REITs you purchased. Finally there is some disruption in a sector outside of energy. These companies should be solid payers for years to come.

      MDP

      Delete
  9. MDP, do you think the Fed interests raise has been priced in for HCP? Will the price go down even lower?

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    Replies
    1. Anonymous,

      I think there has been some interest rate risk priced in. Will it go down further? It certainly may. I think it has been as low as $37 during the past two years. Like energy companies, REITs can be very volatile. My last purchase was in 2013 when the price fell from the low $50 to low high $30.

      It feels good to find a sector outside of the energy space that is feeling some pain.

      MDP

      Delete
  10. Keep up the good work. With a savings rate as high as you have, you will be at your goal in no time.

    Keep cranking,

    Robert the DividendDreamer

    ReplyDelete