Jul 25, 2015
Buy in USD
Omega Healthcare Investors (OHI)
Trade Price: 36.05
Sector: REIT - Healthcare facilities
Payout Ratio: 77% of FFO
DGR 5 YR: 10,8%
I was able to give one more push towards August dividends with this purchase. Now with my 19 shares I'm looking to receive $10.45(minus taxes). Thus forward 12-month dividend looks like $41.80(minus taxes). Not too shabby for ~$672 investment. Additionally OHI tends to increase dividend on a quarterly basis. The company didn't disappoint but declared another increase July 15, when they pumped dividend up to $0.55 from prior quarter's $0.54, making a 1,9% raise. If we go back one year, we are looking at 7,8% raise here.
Check out Roadmap2Retire's interesting summary of US Healthcare REITs. Focusing on skilled nursing facilities (SNF), OHI is clearly less diversified than other large cap HC REITs. Surely, this can be seen as negative, or then OHI is just focusing on what it can do best and does it better than anyone else. This is something that investors need to consider. I think that my HCP position complements my OHI ownership. And I'm still interested to add even third HC REIT to my portfolio, which would be Ventas Inc (VTR). Overall I see this particular REIT sector to be important source of dividend income for me in short term already, and even more so in long term.
Well, now the August dividends are pretty much secured. Really excited to see how much progress I'm able to make from last year. But before that of course we all will wrap up July dividends! And the progress here doesn't look bad at all.
Which stocks do you see as best picks in Healthcare REIT space?
Disclosure: Long OHI, HCP
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