Along with these long-term tendencies, Omega Healthcare Buyers simply survived what has to have been one of many hardest years in a very long time for its trade. In any case, the COVID-19 pandemic hit nursing house residents and staffs significantly exhausting. That the corporate managed to take care of its dividend all through the pandemic is a testomony to its underlying monetary power as we speak.
Particularly since vaccines have develop into commonplace, Omega Healthcare Buyers has reported a big drop off within the COVID-19 instances at its amenities. That strongly means that the worst might very properly be behind it from the pandemic. It additionally ought to begin the method of individuals feeling extra comfy in and round nursing houses, which bodes properly for its highway to normalcy and restoration.
About its financials
Omega Healthcare Buyers has an honest historical past of paying and growing its dividend. Whereas it maintained — reasonably than enhance — that fee all through the pandemic, solely round 24% of that dividend was a return of capital throughout 2020, up solely barely from the 22% in 2019. That implies that its money technology remained remarkably strong even because it was coping with the worst of the pandemic.
That dividend supplies a strong present payout as properly. At $0.67 per share per quarter, its dividend represents a 7.4% yield on the firm’s current inventory value of $36.11. As a Actual Property Funding Belief, Omega Healthcare Buyers should pay out no less than 90% of its earnings in its dividend. With that profile, it’s seemingly that the corporate will preserve a big dividend so long as its operations will assist it. As well as, as the corporate recovers from the pandemic, it could possibly resume its dividend will increase as properly.