A portfolio of stocks I've been building since September 3, 2019, is named Volio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the fifth of five real estate sector stocks striving to join my Volio folio. This could be my twenty-seventh pick for Volio!
That real estate sector includes twelve industries all related to real property ownership. Like: Real estate development, Real estate diversified, Real Estate Services, and nine varieties of real estate investment trusts, or REITs.
My subject today is a mid-cap healthcare real estate investment trust named, Omega Healthcare Investors Inc. Their trading ticker symbol is OHI. This is my first ever report about Omega Healthcare Investors Inc.
Omega Healthcare Investors Inc is a healthcare facility real estate investment trust that invests in the United States and UK real estate markets.
Omega's portfolio focuses on long-term healthcare facilities. The company maintains dual goals of increasing its returns to investors while also maintaining a high level of care for residents.
Omega works to obtain contractual rent escalations under long-term leases, along with fixed-rate mortgage loans. The company considers merger and acquisition investment as a component of its operational growth strategy.
Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the US, as well as in the UK.
With stock price records stretching back to 1992, Omega Healthcare is headquartered in Hunt Valley, Maryland.
I use three key data points to gauge dividend equities or funds like Omega Healthcare Investors Inc:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
OHI Price
Omega's price per share closed at $41.15 yesterday. A year ago their price was $35.55. Thus, in the past year, their market price increased $5.60 or a little over 15.75%
Assuming Omega's stock trades in the range of $35 to $45 this next year, its recent $41.15 price might rise by $1.85 to reach $43.00 by March 6, 2021, assuming upward price momentum continues.
OMI Dividends
Omega's latest declared quarterly dividend was $0.67 paid February 14. That $0.67 Q dividend equates to an annual payout of $2.68 and yields 6.51% at yesterday's $41.15 share price.
OMI Gains?
Adding the $2.68 annual estimated dividend to my $1.85 estimate of Omega Healthcare Investors Inc price upside shows a $4.53 potential gross gain, per share, which will be reduced by any costs to trade those shares.
A little under $1,000.00 today invested in Omega Healthcare Investors Inc at its recent $41.15 price, would buy 24 shares of OMI.
A $10 broker fee paid half at purchase and half at sale could cost about $0.42 per share.
Subtract that $0.42 brokerage cost from the estimated $4.53 gross estimated gain per share results in a net gain of $4.11 X 24 shares = $98.64 or a 9.875% net gain on a $987.60 investment.
Therefore, Omega Healthcare Investors Inc, whose trading ticker symbol is OHI shows a possible 9.875% net gain including a 6.51% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Omega Healthcare Investors Inc, is worth your time and money.
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