I used the money from the LTC sale to buy 56 shares Senior Housing Properties (SNH). Both LTC and SNH are health care REITs. They own nursing homes, senior apartments, and assisted living properties. I'm fan of health care REITs because I believe the demand for these types of properties will increase as the baby boomer generation ages.
This move will increase my dividend income since SNH yields 6.7% while LTC dropped to 4.6% at the price I sold it. If I wanted to wait I think I could find a better price with SNH, but this was meant to be a swap. I don't want to increase my cash position at this time. It should go ex sometime this month, I wanted to make sure I get the Q3 dividend. I've been monitoring SNH for a while and think it offers more value than LTC right now. SNH has a better yield, lower p/e, and is not at its 52 week high. It does have higher debt, and a lower dividend growth rate however. Low debt (for a REIT) was one of the reasons I bought LTC in the first place. I also like NHI from the industry, but it's trading at its 52 week high as well.