Friday, January 6, 2012

LTC Properties Increases Dividend

LTC Properties (LTC) recently raised its dividend from $.14/month to $.145/month an increase of about 3.6%.  I am not surprised by the announcement since it's FFO payout ratio is 85.20%.

LTC Properties (LTC) is a Real Estate Investment Trust which invests in nursing homes and senior housing.  I originally bought this investment back in March 2011 because I think there will be a lot of money to made in senior housing as the US population ages.  There are other REITS doing the same thing, but I was attracted to LTC because they have a lot lower debt and leverage than peers I evaluated at the time.  Since my initial purchase LTC has increased debt which doesn't bother me too much since interest rates are low. 

I was not planning for LTC to be a large position but back in August the stock was getting murdered.  There was blood in the streets so I doubled down and picked up more in the low 20's.  I do not expect large dividend increases from this position and if there are some freezes along the way I'm ok with that.

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