This week my stock pick is Senior Housing Properties Trust. It’s a stock I’m well familiar with – it’s been in my portfolio for more than a decade. I’ve gradually added shares over time.

And, from the perspective of unrealized gains and losses, it’s been a losing venture. But at the current share price, you can benefit from my early over eagerness and get your position at what I think is a bargain.

Am I a glutton for punishment? The stock closed at $17.24 on the July 27, closer to a 52-week low than a 52-week high. Share prices are down about 10% year-to-date. I see a buying opportunity. But if you prefer a more cautious approach, the company’s next quarterly earnings release comes out August 7. Why not wait and take a look at my thesis after digesting the latest financials?

(In the first quarter, funds from operations dipped slightly, to $107.2 million from $108.4 million in the year earlier period. Most of the FFO is paid out as dividends.)

The company says it owns $8.9 billion of senior living and health care and medical office real estate, consisting of 444 properties in 42 states and the District of Columbia.

SNH is not without risks. The company’s debt load, while manageable in my view, is something to keep an eye on – especially in a rising interest rate environment. SNH has $3.64 billion in long-term debt, about 52% of total capital.

Questions have been raised about the relationship between SNH and the the RMR Group, which manages its properties. A few years ago, SNH and three other REITS managed by RMR took action to make sure their interests were aligned with RMR’s. The REITs acquired a nearly 50% interest in RMR. The deal also locked in long-term management contracts with the company. Investors seemed unmoved by the action, perhaps thinking it cemented the potential conflict in place rather than freeing SNH from RMR’s influence.

So what has me wanting to add shares of SNH to my portfolio? The 9% dividend yield. It’s hard to find companies paying that high a dividend that haven’t had to cut their payout. SNH has been consistently paying a high single digit yield for years.

To be sure, buying SNH is not a dividend growth strategy. The dividend hasn’t been raised for years and the company hasn’t indicated any plans to do so soon. But at 9%? I’ll take that yield right now, thank you very much.

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