September Cash Dividends
GAIN: $170.78 + $75.19 Special
I once wrote that GAIN trades between $9 and $12. I still believe this is true, but GAIN has been trading above $12 for quite some time now. At what point do I give up on $12 and accept $13? $14? $15? Usually, I’m worried about the other direction. If GAIN fell to $8, I’d probably be scooping up cheap shares because that yield would be ridiculous. At $12.51, I wouldn’t exactly call GAIN cheap anymore. Having said that, it is important to factor in the special dividends GAIN pays because those extra payments may push that annual 6.5% yield up to 7.0%.
When I started the monthly dividend portfolio, my rule was that I did not invest in dividend stocks yielding less than 7%. However, I strayed away from this law by adding LTC, yielding as low as 4.5%. This, by the way, is still a ridiculously high yield. A safe dividend stock would probably sit closer to 2-3%. However, I’m not trying to be safe, I’m trying to be rich.
If you take a look at the Yield column in the table above, you can see that it has steadily fallen over the past few months. GAIN yielding under 7% is hard for me to stomach because I’ve been buying it for three years now and most of my holdings were purchased around $9. The saving grace is the special dividend. Periodically, GAIN will sell all of its interest in a company and distribute the capital gains to the shareholders. This is taxed differently than the dividend and only comes maybe twice a year, but in order to get the true annual yield of GAIN, you need to factor in the special dividends.
APLE: $244.41 Dividend
I don’t have too much to report on APLE. 2019 has been a stale year, but their dividend has been consistent. I believe that anything under $18.00 is a great deal for APLE. The online consensus is that this is a recession proof investment that will likely continue to add properties, pay off debt, upgrade facilities, and pay their +7% dividend. I’m a hold on this, but if you don’t have a position, I’d recommend buying it.
LTC: $61.21 Dividend
LTC is up 15% since the July 31 DRIP, so basically two months. I still have 9 more paychecks I will be investing in LTC, but I no longer consider this a cheap stock or recommend this as a buy. I hope at some point in the next 9 months, LTC takes a well-deserved, sell-off induced nose dive. However, I wouldn’t count on it. Senior Living is a hot industry in the stock market world and I believe as investors look for safer investments with high yields, LTC will be a home for cash heavy traders who get too antsy to sit on the sidelines.