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 5 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.