I’ve significantly slowed my stock buys. I’m waiting for interest rates to rise in December or for the market to panic once everyone realizes that we just elected a reality TV star into the White House. Neither has happened yet. I’m 50/50 on the odds of an upcoming rate increase. REITs have dropped in price on fears of an increase. Even with the risk of a rate hike, the price was right, so I decided to add 100 shares of Omega Healthcare Investors, OHI to my portfolio.
I bought 100 Omega Healthcare Investors shares at a per share price of $28.61, totaling $2,861. My OHI share total is now sitting at 211.16. These new shares will add $244 to my annual dividend income. Total forward annual dividend income from OHI shares is now $523 dollars.
This new OHI buy, helped to cut my overall per share cost basis to $29.88.
Omega Healthcare Investors Business Summary
Omega Healthcare Investors, Inc. (Omega) is a self-administered real estate investment trust (REIT). The Company invests in income producing healthcare facilities, long-term care facilities located throughout the United States and the United Kingdom. It operates through the segment, which consists of investments in healthcare-related real estate properties. It provides lease or mortgage financing to qualified operators of skilled nursing facilities (SNFs) and assisted living facilities (ALFs), independent living facilities, rehabilitation and acute care facilities. Its portfolio consists of long-term leases and mortgage agreements. Its portfolio of investments included approximately 1,000 healthcare facilities, located in over 42 states and the United Kingdom that are operated by over 80 third-party operators. The portfolio consists of approximately 780 SNFs, 85 ALFs, 15 specialty facilities, one medical office building, and fixed rate mortgages on 55 SNFs and two ALFs. (Source: schwab.com)
Omega Healthcare has over 1,000 locations In the US and UK.
Omega Healthcare Investors Dividend Info
- Annual Dividend Yield of 8.49%
- Annual Dividend Rate (IAD) $2.44
- 3 Year Dividend Growth Rate of 8.9%
- 5 Year Dividend Growth Rate of 9.7%
The image below shows the past 8-years of OHI dividend payouts. The chart shows healthy year-over-year dividend increases. Omega Healthcare Investors has increased dividends for 17 consecutive quarters.
OHI Stock Movement
Over the past 30 days, OHI stock price has been on a decline. The stock is down 14.83% the past 30 days. I was happy to buy shares at $28.61. This stock price helped me to cut my cost basis by a few dollars per share.
I pulled Fast Graphs and Finbox metrics on OHI. Both services show favorable buyer conditions. By this I mean, OHI is undervalued.
Fast Graphs shows OHI stock is undervalued. The stock is trading lower than its funds from operations.
Finbox also shows that Omega Healthcare Investors is trading at a slight discount. Finbox estimates 12.1 upside, with an average share price of $31.81.
I’m slightly concerned that I could get a better deal by waiting until the Fed meeting. Rates may very well go up in December. If rates do go up, I expect REITs to fall even further. If this happens, I’ll likely purchase 100 more shares to further cut my cost basis. If prices don’t drop, I’ll sit tight with my 211 shares and collect great quarterly dividends.
Speaking of dividends, if OHI stock stays at its current price, I’ll be dripping almost 5 full shares a quarter !
What’s your opinion of Omega Healthcare Investors? Are you buying or avoiding REITs? Do you think interest rates will go up in December?