Recent Buy – EPR, STWD

I’m looking for companies that are fairly valued, have a decent dividend yield(3% to 6%) and have a fairly long history of paying dividends consistently for 10 years or more. However, there could be some cases for exceptionally good company or a strategic buy for a very long term.

Here are the 2 buys in second week of Aug, 2016:

1) EPR Properties (EPR)
Reits have become expensive in general but I still find there is some value there, although, there could be significant pull back in case Fed ticks the rate up. So, this is a risky bet that I’m taking. I added positions in EPR on 8/11 at $80.00. It’ll add $19.20 of passive dividend income on an annual basis.

2) Starwood Property Trust, Inc. (STWD)
As I mentioned that reit segment is getting overheated and this has a higher risk to significant correction as well. But, as a long-term investor, this could be good addition to the portfolio. I bought 20 positions in STWD at $22.30 on 8/11 and it’ll add $38.20 of passive income on an annual basis.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

7 thoughts on “Recent Buy – EPR, STWD

    1. Hi Investing Hunting,

      Great to hear that. I like STWD but it has gotten expensive in recent days. I’ll like to add more positions when prices drop a bit. The market wants to set newer highs with every passing day and its getting difficult to find companies with good valuations.

      Thanks for stopping by and commenting!

    1. Hi DH,

      Ha! Fully in agreement: too many companies and not enough capital to put a hand on those companies 🙂 I try to hold companies in various segments and reits is an important component, but, reits have rallied really hard in last few months, many sitting close to their highs.

      Thanks for stopping by and commenting!

  1. I exited my STWD trade recently, taking some gains. As you say, the REIT space is a little expensive now. My main reason, though, is to increase the size of core holdings in my portfolio for options trading.

    All the best!

    1. Hi FerdiS,

      Being a long term investor, I sell companies only when companies breach the faith they have committed to us, or some mal-practice reasons or even perhaps a drastic cut in dividends. I tend not to sell a company when price is going higher, as we do not know how much higher it can go. That being said, taking profit is always good 🙂 I’ll like to look into options but it sounds like it could take a while, especially, if you are working full time. All the best for options trading and keep posted on that strategy.

      Thanks for stopping by and commenting!

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