This Healthcare REIT Has A 7.8% Yield & 17 Straight Quarters Of Dividend Growth

A sky-high dividend yield can sometimes be a sign of trouble. There is a difference between a stock that sports a high dividend yield because it is growing its dividend, and a stock that has a plunging share price.

Omega Healthcare Investors (OHI) is the former.

A declining share price elevates a stock’s dividend yield.But, a company in questionable financial position is at risk of cutting its payout.

Omega, on the other hand, has a long track record of dividend growth. It has increased its dividend for 17 consecutive quarters.

Omega is a Dividend Achiever; it has raised its dividend for at least 10 consecutive years.

The company’s steady dividend growth has lifted its dividend yield to just below 8%. This is an unusually high dividend yield.   Omega is one of the highest-yielding Dividend Achievers.

Plus, Omega is in strong enough financial position to continue growing its dividend.Keep reading this article to learn about the compelling investment prospects of Omega Healthcare

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Omega Healthcare Investors

Business Overview

Omega is a Real Estate Investment Trust, which are commonly referred to as REITs. These companies invest in real estate properties.  REITs allow investors to profit from diversified real estate investments without buying physical properties.

REITs are a popular choice for income investors. They are required to distribute at least 90% of their income to shareholders to retain favorable tax status.

REITs invest in a variety of property types. In this case, Omega operates in health care properties. It is primarily focused on skilled nursing facilities.

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OHI Portfolio

Source: 2016 Investor Presentation, page 6

In all, Omega has an investment portfolio that includes approximately 1,000 properties located in 42 U.S. states and the U.K.

The business model is straightforward.  Omega uses a combination of internally-generated cash flow and externally-raised capital to purchase properties. These properties generate cash flow, which the company uses to buy additional properties.

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Disclosure: 

Sure Dividend is published as an information service.It includes opinions as to buying, selling and holding various stocks and other securities.

However, the publishers of Sure Dividend are not brokers or acting as investment advisers and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person.

Sure Dividend does not guarantee that you will out-perform the stock market.

The information provided by Sure Dividend is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness.

At various times, the publishers and employees of Sure Dividend may own, buy or sell the securities discussed for purposes of investment or trading.Ben Reynolds invests his own portfolio primarily in stocks recommended in the Sure Dividend newsletter.

Sure Dividend and its publishers, owners and agents, are not liable for any losses or damages, monetary or otherwise, that result from the content of Sure Dividend.

Past results are not necessarily indicative of future performance.

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