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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?

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2 Responses to "Recent Buy – Omega Healthcare Investors (OHI)"

  1. 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.

    1. MFIJ says:

      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.

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