This assisted-living REIT will report earnings on May 4. Analysts expect revenue growth on flat earnings. The shares took a hit in March, but have begun springing back, and while you wait for appreciation, you can enjoy the nice annual dividend yield of 9.04%, paid quarterly.
Omega Healthcare Investors, Inc. (OHI)
From Forecasts & Strategies
Investors were relieved to see Omega Healthcare Investors, the Maryland-based assisted living real estate investment trust (REIT), announce that it once again was paying a quarterly dividend of 67 cents per share. It reports first-quarter earnings in early May.
It rallied sharply after CEO Taylor Pickett issued a comforting statement to investors, “We are heartened by the recent progress on relief measures at the federal and state levels, including Medicaid reimbursements, which we believe may offer meaningful support for our skilled nursing and assisted living facility operators working so hard to meet the needs of their residents.”
Omega has been the most volatile of the dividend-paying stocks. The fear is that Omega Healthcare will see defaults on its triple-net lease loans with nursing homes and assisted living facilities as it saw in Texas a few years ago. Until this crisis, Omega was doing extremely well, with profit margins of 37%. The stock hit $42 a share in January. Suddenly, it fell in half, only to recover quickly (it actually rose 49% in one day in March!). It clearly is back on its way to recovery.
Mark Skousen, Forecasts & Strategies, markskousen.com, Eagle Financial, 300 New Jersey Ave. NW, Suite 500, Washington, D.C. 20001, May 2020