Dividend-News

Daily dividend news for investors in dividend stocks


How Safe Is The Dividend Of Omega Healthcare Investors?

Published Thu, 12 Oct 2017 14:24:12 -0400 on Seeking Alpha

Omega Healthcare Investors (OHI) is the largest company providing skilled nursing care facilities. As the company offers a remarkably high dividend yield of 8.1%, most of its shareholders are holding the REIT for its dividend. Therefore, it is only natural that these investors wonder whether the dividend is safe or the poor performance of the stock signals that the dividend is at risk.
First of all, Omega Healthcare distributes a remarkably generous dividend. Even better, it has raised it for 20 consecutive quarters. In addition, given that the company expects to achieve funds from operations of about $3.42 per share this year, its dividend payout ratio currently stands at 75%. While this payout ratio is not low, it is quite reasonable for a REIT and certainly leaves room to the company to further grow its dividend in the near future.
On the other hand, the market does not offer such an exceptional yield for free, particularly in the current environment of almost record low interest rates and yields. Omega Healthcare has underperformed S&P (SPY) by 24% during the last 12 months. When there is such a dramatic underperformance, there is usually a good reason to justify it. Therefore, investors should make sure they thoroughly understand the reasons behind the high dividend yield of the stock and then determine whether they should stay away from it or the concerns of the market are overblown.
The main reason for the poor performance of the stock and its resultant high... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
OMEGA HEALTHCARE INVESTORS 27.88   0.0 0.00 0.00 0.00

OMEGA HEALTHCARE INVESTORS - OHI
OMEGA HEALTHCARE INVESTORS - OHI  


Older articles featuring Omega Healthcare Investors (OHI):
Dividend Sensei's Portfolio Update 13: Who Wants To Be A Millionaire?
Top Dividend Contender Is Energy Transfer By Gains & Yield In December Again
The MnM Portfolio, November 2017 - The Best Dividend Growth Month Of 2017
Dividend Growth Portfolio November 2017 Letter To Investors
My Dividend Growth Portfolio Update - 48 Holdings, 1 Buy
5%+ Dividend Yield Portfolio: Risk-On Rally Continues (Nov 2017 Review)
Dividend Sensei's Portfolio Update 11: Riskapalooza
Top Holdings Of Dividend ETFs (November 2017 Edition)
Omega Healthcare Investors: Does The Market Price In A Dividend Cut?
Dividend Sensei's Portfolio Update 10: Stocks Take Escalator Up, And Plummeting Elevator Down

More