Tag Archives: NYSE:OHI

Big Dividends are So Tempting! Is This Dividend Stock Good?

Big dividend stocks are tempting. Who doesn’t want to buy shares of a company and sit back to enjoy juicy passive income? Stock investing is not so simple, though. Big dividend yields can be cut.

As a dividend investor who targets extraordinary total returns, I sometimes battle between getting a nice dividend income and a high expected total return. Sometimes, investors can get the best of both worlds, though. When it’s clear a nice dividend stock could deliver high returns, it’s easy to make an investment decision. Other times, the market has given a clear signal that a high yield dividend stock’s dividend could be in danger. Usually, slow growth piggyback on high yield stocks.

Here’s a high-yield dividend stock you might have looked at over the last year.

A dividend stock with a +9% yield

Honestly, I have been tempted by Omega Healthcare (NYSE:OHI) juicy yield in the last month or so. Currently, it almost yields 9.2%! However, my investment decision doesn’t entirely depend on the +9% yield, because there’s the danger that the healthcare REIT could cut its yield to lower levels. Therefore, if I buy the dividend stock, it wouldn’t only be for the dividend, it’ll also need to be a good total-return investment.

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Healthcare REITs On Sale With Big Dividends

These Healthcare REITs have declined 15-20% in the last few months. Which are bargains? Which are quality? Should you buy now or later?

The Healthcare REITs have been in correction mode since July-August. These are rather quick and strong declines, too.

Could it be time to start shopping for bargains?

Let’s explore some of the most popular Healthcare REITs and see which one(s) you may be interested in owning for juicy yields and price appreciation potential.

Recent decline overview

The Healthcare REITs, including Welltower Inc. (NYSE:HCN), Ventas, Inc. (NYSE:VTR), HCP, Inc. (NYSE:HCP), and Omega Healthcare Investors Inc. (NYSE:OHI) have fallen 15-20% in the past few months. So, now is a great time to determine which ones may be ripe for buying for a high income.

The correction so far indicates that Welltower and Ventas are the higher-quality REITs. However, valuation could play a role in the severity of the declines, too.

This situation also shows that if capital preservation is a top priority, it’d make sense to take some chips off the table when stocks trade near or at overbought territories (unless you need the income they generate).

However, it’d be better to confirm that the stocks are overpriced by checking their valuations. After all, undervalued stocks can stay overbought for months and steadily move higher. Read More

On Sale! Which Healthcare REIT Should You Buy?

The potential for interest rate hikes may have caused the selloff in REITs in the past couple trading days. REITs are popular among dividend investors because REITs are known for their juicy yields.

The Healthcare REITs have been in a downtrend for this entire year and after the price declines, they look cheap with higher yields and total return that outperform. There are a couple of financially sound Healthcare REITs that I want to bring to your attention.

I went through a list of five Healthcare REITs and Ventas, Inc. (NYSE:VTR) and HCP, Inc. (NYSE:HCP) look particularly attractive having fallen 30% and 25%, respectively, year-to-date.

Price chart of Ventas and HCP comparing their performances

Source: Google Finance

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