Buy 300 Shares of Ventas (VTR) On 5/22/2014

Today I bought 300 shares of Ventas. Inc (VTR) at a price of $66.38. This is a stock that is currently paying a 4.3% dividend and the company has been paying dividends for more than 10 years so it should be quite safe.

4/13/2015 Update: I bought an additional 200 shares of VTR today at a price of $73.63. I now have a total of 500 shares and believe this is a company that is very well managed and one that I can hold for many years.

8/19/2015 Update: The spin off of their nursing care facilities into a separate company has now taken place. Ventas shareholders were given 1 share for every 4 VTR shares they owned and you can now see the new 125 shares I got of “CCP” in my account. VTR stock went down as a result of this spin off but I now have shares of CCP to make up the difference. 

**As a result of the spin off, the new cost basis for my first 300 shares is $57.81 and the new cost basis for my second buy of 200 shares is $64.14.

What Is Ventas?

Ventas is a real estate investment trust that specializes in caring for older people. With the Baby Boomer generation aging rapidly, there is no doubt that health care for them is going too explode over the next 20 to 30 years. Ventas owns or controls more than 700 retirement living facilities and more than 400 nursing facilities. Additionally it manages about 240 medical buildings all over the United States. Here is a short video showing many of their properties:

Why Did I Buy Ventas?

I don’t currently have any exposure to healthcare or the aging Boomer population so I looked around for a stock that I thought had good prospects. The 52 week high for VTR is $79.81 so at my purchase price of $66.38, I am not buying at the top. The dividend, in this low rate interest environment, is a major reason I am buying. I am happy just collecting the 4% every quarter and feel over the VERY long term, this stock has a good chance of going up. I hope to hold this stock for five years or longer. 

10 Responses to “Buy 300 Shares of Ventas (VTR) On 5/22/2014”

  1. Paul says:

    I just bought 410 shares @49.75. I am keeping this stock until all the Baby Boomers die. With statistics like this:

    “Roughly 10,000 Baby Boomers will turn 65 today, and about 10,000 more will cross that threshold every day for the next 19 years,”

    I will be keeping this stock for a very long time. @49.75, I am getting in at roughly its 52 week low. I am very happy with this purchase. Hopefully, it will prove to be a great LT investment.

  2. Stephanie says:

    Hi Bruce,

    Can you see the new spin off CCP under your portfolio? I think it should add in the account automatically, right?


    • Bruce Alan says:

      Yes, CCP should automatically appear in your account (it did in mine). I think we get 1 share of CCP for every 4 shares of VTR. I don’t plan on selling either stock for a long time as they both pay a nice dividend!

  3. Kathleen Nelson says:

    I have heard fees for REITs are high. What’s the story?

    • Bruce Alan says:

      Non-traded REITs have high fees.
      Publicly traded REITs do not. They trade like regular stocks (as does VTR) and the monthly or quarterly dividends you get are taxed as regular income. Publicly traded REITs typically pay out 90% or more of their income to shareholders and that is why the dividends can be so high.

  4. Becca Wilkins says:

    VTR dropped a lot yesterday. Are you optimistic that it will bounce back up? If I’m interested in buying low, do you think it’s foolish to buy it now when it seems to be at an all time low? Obviously, you can’t predict if it will continue to drop or not, but I’m just curious about what you’re thinking about this company. Do you regret buying this? I would really like to have long investments. Do you think it’s still possible with this company?

    • Bruce Alan says:

      VTR is a long term holding and of course I wish it wouldn’t go down but the only thing that matters is where it will be in 1,2,5, or 10 years. It pays a great dividend and I have absolutely no intention of selling. If you are thinking of buying, Google some articles about the company and read them to see if you think the company will have a good future or not. I hope and think they will but that is just my opinion.

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