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| Nursing Home (Photo credit: LOLren) |
Health Care Reit NHI delivers income and it is cheap.
I like to buy stocks when others are selling. Nevertheless, be careful and do not use all your cash at once for the market could continue to deteriorate. Look for a company that has good fundamentals but has suffered from a stock price viewpoint. NHI, National Health Investors is just such a company.
National
Health Investors – down 18.87%
NHI is a health care REIT (real estate investment
trust.) Investors buy a company like
NHI for the dividend. REIT’s are
required to payout most of their earnings in order to maintain favorable tax
status. However, when interest rates go
up, these yield heavy stocks tend to go down.
The theory is that increasing bond interest rates compete with the dividend
yield and investors will sell the stock and buy bonds.
I consider a stock that has corrected nearly twenty
percent and that still has the fundamentals of a dividend machine to be a
bargain. Therefore, I will consider
adding to my position when the market opens in the morning.
National
Health Investors – Dividend Machine Fundamentals
DIVIDEND
MACHINE
|
6/20/2013
|
National
Health Investors
|
NHI
|
Price when profiled
|
$59.20
|
Last 4 Qtrs Earnings
|
$3.17
|
Last 4 Qtrs Dividends
|
$2.78
|
Current Qtr Dividend
|
$0.70
|
Annualized Div Yield
|
4.70%
|
No. Years Div Increase
|
10
|
Debt/Equity ratio
|
0.43%
|
NHI meets all four criteria for being a dividend
machine. It earns $3.17 per share while
it pays out $2.78 per share in dividends.
When it makes more money, NHI pays its shareholders
extra dividends. At yesterday’s closing
price of $59.20, the dividend yield is 4.7%.
NHI has increased the dividend every year since 2002 and carries a very
respectable D/E ratio of .44. The
table at the right sums it up.
Be prepared, do your research, do not follow the
crowd and invest on the dips.
TheMoneyMadam
http://www.themoneymadam.com/2013/06/eleven-stocks-to-buy-for-income-now.html
http://www.themoneymadam.com/2013/06/eleven-stocks-to-buy-for-income-now.html
