Real Estate Investment Trust (REIT)

Real Estate Investment Trust or REIT, are stocks I started my personal investing in 3 years ago. These stocks are companies that deal in real estate in some form or another. They can own the actual real estate or own the mortgages of the real estate. REITs are treated specially when it comes to tax purposes. For the corporation, all their profits are tax after the company pays out its dividends. It is required to pay out 90% of its pre-tax income to be treated as a REIT. From the individual's side they get increased pay outs from the company, a downside is  that income is treated the same as wage income and usually taxed at a higher tax rate.

I think REITs are worth looking into finding the best one that fits what you are looking for. One that I will be writing about shortly is called Omega Healthcare Investments, (OHI). Other REITs that I own are ARR, AGNC, and IVR. Look for my analysis on OHI over the next week.

This post was meant to give you a little background on REITs for my OHI article that is coming.

Omega Healthcare Investments (OHI)

Omega Healthcare Investments (OHI) has performed really well since the beginning of the year. To date the stock is up 27.5%. This is more than the general market. The company leases out real estate for health care, usually long term care facilities and other types of assistant living centers. They are also a REIT. (Refer to my earlier blog to see what a REIT is)

The company has a record of increasing it's dividend every quarter for the past few years. The current dividend is $.51. Which gives you a yield of 5.41% at today's closing price. This increasing dividend will help give the stock and higher price support with the yield. I personally have owned the stock since last December when I bought it at $30 a share. I plan on continuing to hold the stock for as long as the company keeps performing the way it has been. After the last earnings report the company increased their yearly out look. In that same report they beat their earnings estimate. I have been selling put options on this stock for almost as long as I have owned it. It's another way for me to increase my return on the stock with out needing to put more cash into it. I may even buy more of this stock in the near future.

For those investees looking to get into the real estate or healthcare sector this is a stock worth looking into.

Introduction

I've been investing on my own for almost 3 years now. I have basically taught myself how to invest, by way of reading material online about how to invest. For those who want to invest you can usually find information from your broker on how to start with the basics of investing, which is what I did. I use Etrade, but many other online brokers have good educational resources as well, you have to find the best one for yourself based on your needs. 

So for the past 3 years I have been investing in stocks with a little into bonds, but I stopped using bonds for myself as they are not giving me the returns I can get from other things. Almost 2 years ago I started getting into options as a way to increase my yearly returns. I just started using covered calls but eventually got into naked puts as well. These 2 forms of options have increased my yearly returns by a significant margin.

I am always trying to learn new investment options myself as a possible way to increase my returns. As I do learn new things and try them out I will share my thoughts on how the different investments turned out for me on here as well as continuing to write about the investments themselves. 

Welcome

Welcome to my investment blog. I will post things on here related to all investments, mainly stocks and real estate news although may go into some personal investment and goals.

I will publish things as they happen if I feel they need to be shared and gone into more detail.

Thanks for reading!