05-07-2015, 03:55 PM
I've been buying VTR with the dividends coming into my Roth, plus a little rebalancing to get the position started. The starting yield is a little lower (4.6% as of today, not 3.5% as shown on screeners due to the split dividend payment for Q1), but the DGR is a little higher and has been very consistent. The last raise was 9%, and the next one is supposed to be at least 10% due to the spinoff of their SNF portfolio as a separately traded company. Shareholders will receive 1 share of Care Capital Properties (CCP) for every 4 shares of VTR.
CCP is the portfolio supported by medicare/medicaid, similar to OHI. I don't know much about the political risk surrounding these payments, but I'm aware that it's an issue and I like the idea of not worrying about it. VTR will end up with purely private-pay tenants concentrated in upscale markets, meaning there is only broad economic risk. I'll probably sell my CCP and put the money back into VTR, although I'll try to wait until the yields aren't too far apart to do so.
CCP is the portfolio supported by medicare/medicaid, similar to OHI. I don't know much about the political risk surrounding these payments, but I'm aware that it's an issue and I like the idea of not worrying about it. VTR will end up with purely private-pay tenants concentrated in upscale markets, meaning there is only broad economic risk. I'll probably sell my CCP and put the money back into VTR, although I'll try to wait until the yields aren't too far apart to do so.