My Financial Independence Journey » Investment portfolio » Recent Buy – Omega Healthcare Investors (OHI)
Recent Buy – Omega Healthcare Investors (OHI)
As part of my commitment to keep my readers up to date on my portfolio, I write up short posts describing my transactions. Recently, I purchased 26 shares of Omega Healthcare Investors (OHI).
These 92 shares have a total cost basis of $2,774.59, which works out to about $30.16 per share. I feel that this is a fair value, especially given currently overvalued nature of the market. OHI’s current forward dividend is $1.88 per share. So this amounts to a 6.23% starting yield. The yield is so higher than normal because OHI is a REIT and thus required to pay out at least 90% of its taxable income to share holders. This purchase will increase my dividend stream by $172.96 per year. The starting yield is above what I would consider a fair entry yield for a REIT (~5%), and I feel that this company is overall fair valued.
Disclosure: I am long OHI.
Readers: What do you think of this purchase?
Written by MFIJ
Filed under: Investment portfolio · Tags: ohi, recent buy
2 Responses to "Recent Buy – Omega Healthcare Investors (OHI)"
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I initiated a position in OHI earlier this month as well. The balance sheets look in good shape – although we’ve had a bit of a downturn with the rising rates.
OHI has been a very solid REIT over the last 10 years. Of course, the price started dropping as soon as I bought it (just my luck – but the market is overvalued so I kind of expected this), but I’m pretty confident that it will be a dividend powerhouse for years to come.