Alternative Investments – Real Estate

Skyline

Alternative Investments can provide lucrative returns that are unavailable by investing in the stock or bond market. In earlier posts, we discussed alternative investments in farmland, rooftop solar systemprivate equity, and collectibles. In this article we discuss investing in one of the most popular forms of alternative investment – Real Estate. Note that investing in farmland is also a form of real estate investing, but I figured that farmland had a special case which deserved its own post.

As mentioned, investing in real estate is one of the most popular forms of investing as it is easy to understand and provides one of the most basic needs of human survivability – shelter. There are multiple options for investing in real estate: one can invest in a piece of land and hold it for capital gains, or invest in a house/condo/multi-family units and rent it out to generate cash flow while holding the property for capital gains or purchase shares in a real estate investment trust (REIT) company.

Alternative Investments – Real Estate

Investing in a property is usually capital intensive, as a downpayment is usually necessary. However, due to the availability and popularity, investing in real estate investment trusts (REITs) is a breeze with companies easily available to trade on the stock exchanges. Investing via REITs provides some advantages as well – in that you can compare one business against another and pick to choose the best one. Also, when buying shares in REITs, it is easy to liquidate funds which may not be possible with owning your own property. A few weeks ago, Robert Baillieul guest posted on this blog on how to invest and collect monthly rents without becoming a landlord.

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American Water Works (AWK) Dividend Stock Analysis

AWK

American Water Works Company (AWK) is the largest publicly traded water company serving approx 15 million people in US and Canada. In serving the 15M customers, the company boasts 48,000 miles of water pipelines serving 1,600 communities and 3.2M regulated customers. Water is an essential service, which we cannot live without and the current drought conditions in California have brought water and its implications (or rather, the lack there of) on society. Investing in water utilities can provide with possibly lucrative returns for investors.

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Chatter Around the World – 92

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

Food Habits

Changes in Food Habits in the past 22 Years

New Blog Posts

Let’s dive into the links that caught my attention this week.

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Omega Healthcare (OHI) Dividend Increase

Omega Healthcare Investors Inc (OHI) announced that its quarterly dividend will be raised by 1.88% from $0.53 to $0.54 per share. This dividend increase is the company’s eleventh consecutive quarterly increase. Because the company is merging with AVIV REIT, the next payout will be a pro-rated dividend of $0.18 scheduled to be paid on May 15, 2015 to shareholders on record as of Apr 30, 2015. The new dividend rate results in an annualized yield of 5.65% based on today’s closing price.

C. Taylor Pickett, President and CEO of Omega stated, “We are very pleased to have closed the Omega/Aviv merger on April 1st and we are working together on a combined basis sourcing growth opportunities. The merger closed later than we originally expected and we issued equity earlier and in a larger amount than we had originally planned. Therefore, our first quarter guidance is less than we planned and our quarterly run rate is a quarter behind our initial guidance. Our quarterly run rate, annualized using the mid-point guidance for the third quarter, is $3.08 per share for AFFO and $2.84 per share for FAD.” Mr. Pickett continued, “We are excited about our continued growth prospects and our outlook going into 2016.

 

My portfolio consists of 102 shares of Omega Healthcare, which increases my annual OHI dividends from $216.24 to $220.32, an increase of $4.08.

Kinder Morgan Inc (KMI) Dividend Increase

Kinder Morgan Inc (KMI) announced a 6.67% increase in its cash dividend! The quarterly cash dividend will increase from $0.45 to $0.48 per share and payable on May 15, 2015 to shareholders on record as of Apr 30, 2015 and ex-div date of Apr 28th. The annual dividend rate goes up from $1.80 to $1.92. Yield going forward is 4.42%.

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