Omega Healthcare Investors, Inc. Plans Quarterly Dividend of $0.67 (NYSE:OHI)

Key Points

• Omega Healthcare Investors, Inc. announced a quarterly dividend of $0.67 per share, with a yield of 6.85%, payable on August 15th to shareholders of record on August 4th.
• The company has a high payout ratio of 148.1%, indicating reliance on its balance sheet to cover dividends; however, analysts expect earnings to improve, potentially bringing the future payout ratio down to 90.2%.
• Wells Fargo upgraded Omega Healthcare's rating from "equal weight" to "overweight", raising its price target from $38.00 to $41.00, while the consensus rating remains a "Hold."

Omega Healthcare Investors, Inc. (NYSE:OHI - Get Free Report) declared a quarterly dividend on Friday, July 25th, RTT News reports. Shareholders of record on Monday, August 4th will be paid a dividend of 0.67 per share by the real estate investment trust on Friday, August 15th. This represents a $2.68 annualized dividend and a yield of 6.85%.

Omega Healthcare Investors has a payout ratio of 148.1% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Omega Healthcare Investors to earn $2.97 per share next year, which means the company should continue to be able to cover its $2.68 annual dividend with an expected future payout ratio of 90.2%.

Omega Healthcare Investors Stock Up 0.3%

Omega Healthcare Investors stock traded up $0.11 during mid-day trading on Friday, hitting $39.11. The company had a trading volume of 1,419,786 shares, compared to its average volume of 2,415,426. The stock has a market cap of $11.32 billion, a price-to-earnings ratio of 24.29, a PEG ratio of 2.69 and a beta of 0.68. Omega Healthcare Investors has a 1 year low of $35.04 and a 1 year high of $44.42. The company has a quick ratio of 6.58, a current ratio of 6.58 and a debt-to-equity ratio of 0.90. The business has a fifty day moving average of $37.09 and a 200 day moving average of $37.19.

Omega Healthcare Investors (NYSE:OHI - Get Free Report) last announced its quarterly earnings results on Thursday, May 1st. The real estate investment trust reported $0.75 EPS for the quarter, meeting the consensus estimate of $0.75. Omega Healthcare Investors had a net margin of 41.29% and a return on equity of 9.98%. The company had revenue of $228.38 million for the quarter, compared to analyst estimates of $236.61 million. During the same period in the prior year, the firm posted $0.68 earnings per share. The firm's revenue was up 13.8% on a year-over-year basis. On average, sell-side analysts expect that Omega Healthcare Investors will post 2.86 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Separately, Wells Fargo & Company upgraded Omega Healthcare Investors from an "equal weight" rating to an "overweight" rating and boosted their price objective for the company from $38.00 to $41.00 in a research note on Monday, July 14th. Five equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $42.25.

Institutional Investors Weigh In On Omega Healthcare Investors

A hedge fund recently raised its stake in Omega Healthcare Investors stock. Royal Bank of Canada lifted its stake in shares of Omega Healthcare Investors, Inc. (NYSE:OHI - Free Report) by 29.4% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 144,339 shares of the real estate investment trust's stock after purchasing an additional 32,798 shares during the quarter. Royal Bank of Canada's holdings in Omega Healthcare Investors were worth $5,496,000 at the end of the most recent quarter. Institutional investors own 65.25% of the company's stock.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings.

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