Daily Stock Analysis: Omega Healthcare Investors

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Omega Healthcare Investors Inc has the ticker symbol OHI and is a mid-cap member of the healthcare sector as a healthcare facilities real estate investment trust. This is my second report on Omega Healthcare Investors Inc for this Vista folio. I previously discuss OHI on March 14, about a month and a half ago.

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 assets span all regions within the US, as well as in the UK. The company considers merger and acquisition investment as a component of its operational growth strategy.

The company is headquartered in Hunt Valley, Maryland.

Three key data points gauge dividend equities or funds like Omega Healthcare Investors Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

OHI Price

Omega's price per share closed at $38.56 yesterday. One year ago its price was $27.95. Thus, the price per share has grown over 38% since recovering from last year's Covid market slump. 

Should Omega Healthcare Investors Inc stock trade in the range of $25.00 to $45.00 this year, its recent $38.56 price might rise by $1.44 to reach $40.00 by April 29, 2022. My estimate is $0.23 higher than the median of thirteen estimates from analysts tracking OHI.

OHI Dividends

Omega's most recent quarterly dividend of $0.67 is payable May 17th and equates to $2.68 annually which will yield 6.95% at yesterday's $38.56 closing price. OHI has paid annually increasing quarterly dividends for 18 years. 

OHI Returns

Adding the $2.68 annual OHI forward-looking dividend to my $1.44 price upside estimate shows a $4.12 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put a little over $1,000.00 today in Omega Healthcare Investors Inc at $38.56 per share, we'd buy 26 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.38 per share.

Subtract that maybe $0.38 brokerage cost from my estimated $4.12 gross gain per share results in a net gain of $3.75 X 26 shares = $97.42 for a 9.7% net gain on a $1,002.56 investment.

Thus, Omega Healthcare shows a possible 9.7% net gain including a 6.95% forward-looking dividend yield. 

Over the next year at this time, a $1000 investment in OHI could generate $69.50 in cash dividends. And a single share bought at yesterday's closing price was $38.60! So, if OHI is your kind of healthcare real estate investment, the single share price is $30.94 less than than the expected annual dividend income from $1,000 invested. This suggests now may be a good time to adding Omega Healthcare Investors Inc to your holdings. 

All of the estimates above are speculation based on the past history of Omega Healthcare Investors Inc. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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