by Travis Johnson, Stock Gumshoe | March 10, 2014 3:12 pm
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Hi Travis – I really like the idea of investing in a hospital REIT for the long term. Certainly much more than other commercial REITs. One question though is what are the risks if interest rates resume their upward trend?
cheers, david
I’m not too worried about slowly rising interest rates, though shifting sentiment about future rates can certainly hit all income investments, including REITs, quite hard — just witness the dip that almost all of them took a year or so ago when the Fed started talking down QE. Spiking hyperinflation or rapidly rising rates would be hard on the company and would hit the stock, but I think the more likely scenario is a gradual rise in rates and I expect them to be able to keep up with rising rates — they don’t have a lot of debt coming due soon and it seems well managed, and they have escalators in their leases for inflation. Here’s what I noted when I wrote them up last year, my thoughts haven’t really changed on that:
Bought some a while back and based on today’s “irregular” info I put in a small limit bid for tomorrow. If it gets covered it should be in time for the quarterly dividend.
I looked at this a while ago and decided this was on my short list of buys ,so I think I’ll follow our trusty Guru and buy some. It’s a better looking one than most and I have been loathe to plunk money down on most of them. get that dividend now LOL. Has anyone here fololwed Dividend Mantra at all on Seeking Alpha? He has a pretty nice dividend portfolio . Just an average Joe trying to make sure he has income later on. I enjoy his story. He sure isn’t as savey as Travis but he adds a nice homey touch for us little people in the investing world
MPW dropped huge today.
I went in today.
That was largely, though not entirely, the ex-dividend move today.
What is better? Buying a stock before or after ex-dividend?
In theory, it doesn’t matter — there are some strategies that attempt to roll funds from one stock to the next to “capture” more dividends, but there’s no real consensus that they’re effective, particularly on the small scale of an individual investor who has to worry about taxes and commissions.
Thank you Travis 🙂
The insider sells don’t bother you?
The amount of compensation to the directors, isn’t it a bit much? I’m thinking they are getting nearly a million a year in stock options that they quickly sell.
Not particularly. I’d prefer that management not be so abundantly compensated in general, but insiders sell for lots of reasons.