Daily Stock Report: Omega Health Investors (OHI)

Omega Healthcare Investors Inc, known by the ticker symbol OHI, is a mid cap HealthCare Facilities Real Estate Investment Trust  in the healthcare business sector. This is my first report on OHI for my Viital stock portfolio. I last reviewed OHI seven months ago, April 29th when I reviewed it for my Vista stock portfolio. From that report: 

Omega Healthcare Investors Inc is a healthcare facility real estate investment trust that invests in  assets span all regions within the US, as well as in the UK.

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

From its beginning in 1992, the Company has been investing in senior care and in partnering with 63 future-focused, growth oriented operators in the U.S. and U.K.

Three key data points gauge any dividend equity or fund such as Omega Healthcare Investors Inc (OHI):

(1) Price (2) Dividends (3) Returns

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

OHI Price

Omega's price per share was $28.72 as of yesterday's market close. One year ago its price was $37.91. Thus, OHI's share price tumbled about 24% in the past year.

If Omega's stock trades in the range of $15.00 to $40.00 this next year, its recent $28.72 share price could rise by $5.28 to reach $34.00 by December 9, 2022. My estimate is $0.31 under the median of the estimates from thirteen analysts who cover Omega Healthcare Investors Inc for their brokerage firms.

OHI Dividends

Omega's most recent quarterly dividend of  $0.67 was paid out November 15th, to shareholders of record November 4th. That dividend equates to $2.68 annually and yields 9.33% per yesterday's $28.72 closing price. 

Omega Healthcare Investors Inc (OHI) has paid quarterly dividends increasing generally annually for the past eight years since November, 1992.

OHI Returns

Adding the $2.68 annual estimated OHI forward-looking dividend to my $5.28 price upside estimate shows a $7.96 potential gross gain, per share, to be reduced by any costs to trade OHI shares.  

At yesterday's $28.72 price per share, a little over $1000 would buy 35 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.29 per share.

Subtract that maybe $0.29 brokerage cost from my estimated $7.96 gross gain per share results in a net gain of $7.67 X 35 shares = $268.45 for a 26.84% net gain on a $1,005.20  investment.

So it is that Omega Healthcare Investors Inc (OHI)  shows a possible 26.84% net gain including a 9.33% forward estimated dividend yield. 

Over the next year at this time a $1000 investment in Omega Healthcare Investors Inc (OHI) could generate $93.30 in cash dividends alone. Note that a single share of OHI stock bought at yesterday's closing price was $28.72. Therefore, Omega's share price is less than one third the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now could be a prime time to pickup Omega Healthcare Investors Inc (OHI) shares. The estimated next-year dividend from $1k invested is nearly 325% greater than OHI's single share price. Consider yourself alerted. It's a sign! 

All of the estimates above are speculation based on the past history of Healthcare Investors Inc (OHI). Only time and money invested in this stock will determine its market value.

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 ...

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