Omega Healthcare Investors (OHI) is currently one of my favorite stocks. Not just because of its current high yield of 7.66% but because I believe in its long term mission and the long term growth of its dividend. Omega Healthcare has increased its dividend for 18 consecutive quarters, the latest of which occurred in November of 2016 and I am expecting the 19th straight increase announcement any day now. The annual dividend is currently $2.48 per share and I am expecting that to increase for the next quarter to $2.52 per share. How would you like to have a job that increased your salary every quarter ? Well you can from an Investment in Omega Healthcare. For an investor that owns $10,000 of the stock ( about 308 shares at today’s current price) This would mean going from $763.84 in annual dividends to $776.16.
Omega Healthcare is partnered with Operators of Skilled Nursing Facilities (SNF) and Assisted Living Facilities (ALF) by financing the building facilities and leasing them back to the operators under Triple Net Leases (NNN). Its capital is provided under three different programs which are : Acquisition and Lease, Sale Lease Back, or Reinvestment. It operates as a REIT.
Image Sources: Omega Healthcare Investors Website
Omega Healthcare currently has 81 operators that operate 1001 facilities that are located in 42 states and one in the United Kingdom. It’s latest credit rating was BBB- from Fitch Ratings.
Considering all the above facts along with our current aging population I believe Omega Healthcare Investors has a bright future and makes a great long term investment for most any portfolio. This is an especially attractive investment for Dividend Income Investors as it has high yield coupled with a growing dividend and a positive long term outlook.
Want even more information? Omega Healthcare has an excellent Investor Relations presentation on its website proving a large array of facts and details along with current Balance Sheets, Income Statements and Cash Flow Statements. If you are interested in this stock it is certainly worth taking a look.
What do you think? I would love to hear your thoughts and opinion. Please comment below!