OHI

[DividendDragon]

As a UK investor REITS are kind of foreign to me.

Here we have property trusts such as British Land but they don't seem to be as common as they are in the US.

Anyway, a friend of mine is recommending OHI - Omega Healthcare. Before I spend days on research I just wanted to test the water on the opinions of this forum?

What's everyone's feelings?

[Caversham]

I like OHI and have owned it in the past.  It has decent fundamentals, great dividend yield, and good dividend growth. I wouldn't consider it a core position, but with an ~8% yield you can dedicate significantly less capital and still earn roughly the same annual dividend as your core positions.

The general risks are further interest rate hikes from the Fed, and possible over reliance on payments from government entitlement programs.

You may want to review taxes, since dividend taxes for REITS are different than C-Corps for US investors. I'm not sure how the taxes would work for UK investors.

I bought OHI at $27.XX earlier this year and sold it all at $36 a few months ago. My general rule for OHI over the past year or so is that any price below $30 is a good buy.  I'm thinking about reopening my position now that the Fed rate hike has occurred.

[ChadR]

I currently own OHI. It's a small position and I doubt it will ever get very large. The main risks are what Caversham mentioned. The benefits are the large dividend, decent fundamentals, good dividend growth, and the greying of America's population. With baby boomers about to start needing their properties in mass, they should have more than enough bodies to fill their locations. I might double my position, but I wouldn't go much higher. Though I do let my dividends reinvest into them so the position does get larger every quarter. And at 8% the growth in shares is getting it to be a nice size position.

[KTMarty]

(12-15-2016, 10:26 AM)ChadR Wrote: I currently own OHI.  It's a small position and I doubt it will ever get very large.  The main risks are what Caversham mentioned.  The benefits are the large dividend, decent fundamentals, good dividend growth, and the greying of America's population.  With baby boomers about to start needing their properties in mass, they should have more than enough bodies to fill their locations.  I might double my position, but I wouldn't go much higher.  Though I do let my dividends reinvest into them so the position does get larger every quarter.  And at 8% the growth in shares is getting it to be a nice size position.

I also bought OHI and ETO  (10.1%) to include in my High Yield Portfolio. Hopefully both will go back up to their past highs in the next year and collecting the 8.1 & 10% dividends along the way.