DGI Adventure – 11-16-2015 Payday! – Omega Health Care Investors Inc. (OHI)

Today I received $25.76 in dividends from my 46 shares of
OHI. Woo hoo! I guess…

This is the dividend growth version of “instant
gratification”. On 10/28/15 I
purchased 46
shares of OHI because it was about to go ex-dividend. I was a
shareholder of record on 10/29, so that’s why I got paid today.

I had been patiently waiting for the right opportunity and
painfully missed out in September when the share price came within a penny of
my limit order of $32.00 that had been set on 8/24. I lost that patience, and
decided that I preferred the additional income to juice next year’s ROTH
contribution over snagging a low share price.

To quote myself:

With a market yield over 6%, a strong growth history, and a do-nothing
FOMC leaving interest rates at zero, I don’t really see OHI dropping 10% any
time soon to get back in that $32 range.
 

Hmmm…well
let’s just take a look at what happened.

image

OHI Share Price from 10/27/15 – 11/16/15 – Chart from Yahoo
Finance

A mere 4 trading days after my purchase, OHI shares were going
for less than $32.00/share. The “do-nothing” FOMC, technically hasn’t done
anything yet, but now everyone expects them to soon and that has a short-term
effect on REIT pricing. I may have been a little rash calling them do-nothings.
I’d like to think I caused this. You’re welcome.

Part of me regrets not sticking to my original asking price.
In hindsight it looks like $32.00 was a pretty good limit order. The share price
closed today at $32.69. But if I had it to do over again, would I have done it
differently?

Let’s pretend for a minute that I have a time machine. On
October 28th I had a limit order set for 47 shares at $32/share,
which represented a total investment of $1,510.95 (including $6.95 trade commission).
I had $1,665.65 in my account and I knew OHI was going to be my final ROTH
purchase. What if instead of raising my limit price, I just increased the
number of shares to 51 (total investment of $1,638.95)?

I would now have: 51 shares of OHI, $26.70 cash, and an
imaginary gain of $28.24 (1.7%).

Instead I now have: 46 shares of OHI, $25.76 cash, and an
imaginary loss of $159.21 (-9.6%)

Based on those numbers… I kind of want a mulligan. I don’t
really care about the imaginary gain/loss, the key word there being “imaginary”,
but the fewer shares stings. That’s just that much less income potential.

But to quote myself again:

And what if OHI’s share price just goes up over the next quarter and I
dither around and wait even longer for the perfect entry point?

I kind of had a feeling that it was going to drop, but I
didn’t know for sure. We never know what’s going to happen next. That’s the
point right?

Thou can’t time the market, so thou shall not
try to.

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