In anticipation of lower interest rates this fall, I have been researching REITs, BDCs, and MLPs to add to my income portfolio. My current candidates based on valuation include LTC Properties, Inc. (LTC), Blue Owl Capital (OBDC), and Hess Midstream (HESM).
I was able to take advantage of today’s volatility and made a Cash Secured Put trade on LTC Properties – here is the trade:
- Sold: Ten (10) Aug 16, 2024 Puts at $0.50
- Strike Price: $35.00
- *Premium Collected: $500.00
I really like this senior housing and health care focused REIT, it has a 6.33% dividend which is paid monthly – and rock solid financials. Despite low liquidity for the options, I was able to make the trade today during the market mayhem. If I am put the shares on Aug 16, I will start collecting the dividend at the end of the month.
*Excludes transaction costs.
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