Omega Healthcare Investors (OHI), one of the largest skilled nursing care facility companies, is a buy for the income investor. The management of OHI is great and has sold properties that have low income and is using the $335 million in cash to buy better properties in the skilled nursing care sector. The stock comprises 6.54% of The Good Business Portfolio, my IRA portfolio of good business companies that are balanced among all styles of investing.
OHI's position will be left to grow over time and added to whenever a dip like this happens. The company has at many times been under pressure and gotten down to the $27-$28 price range, and each time it has started to bounce back as indicated by the recent earnings. So this is another chance to buy into a good company with a very high yield while they are buying and selling properties, increasing the quality of their portfolio.
When I scanned the five-year chart, Omega Healthcare Investors has a poor chart going up and to the right for 2013-2014, then down slowly for three years ending behind the market. In 2013, OHI had a good year when the market was up 27%; the company came in at a 30% increase.
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