Last week on the day before they went ex-dividend we bought Kinder Morgan, Inc. (KMI) and Omega Health Investors (OHI). These were purchased in Roth IRA's and the plan is to hold them long term and to reinvest the dividends. Both of these issues have been raising dividends quarterly as of late which is quite extraordinary. So long as they raise their distributions once per year we will continue to hold them. If the dividend/distribution is frozen or is cut we will sell.
I think it's very wise to hold REIT's in a Roth IRA as they would normally be taxed as ordinary dividends. Even with the market getting a bit frothy there are a couple of securities that I like for our retirement portfolio. Defense and oil stocks still seem to be reasonably priced. If you are a contrarian, and we try to be, I would look at emerging markets index funds/ETF's or opening a position in a dividend paying precious metals stock.
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