Omega Healthcare Stock: A Great Opportunity For Call Options
Sep, 08th 03:23
Omega Healthcare Investors, Inc. (NYSE: OHI) has an enterprise value of $9.7B having recently acquired AVIV in a $3B acquisition.
OHI is a real estate investment trust based in Maryland and founded in 1992. OHI invests in healthcare facilities, primarily in long-term skilled nursing facilities in order to create its portfolio. Approximately 90% of OHI’s property assets are SNFs and OHI is also the largest REIT holding primarily SNFs.
At the closing bell on Friday, September 4, OHI’s dividend yield was 6.8% and its per share price was $32.35, essentially at its 52 week low. The market has not been kind to OHI over the last few months with fear of a Federal Reserve rate hike driving down the share price of OHI. We can find no other rational explanation for OHI’s price drop. OHI’s dividend growth over the last 10 years has been excellent with a CAGR of 9.6%, including through the worst financial crisis since 1929 with nary a hiccup.
OHI has a solid balance sheet. Moody’s recently upped its credit rating of OHI to Baa3, an investment grade rating.
This stock clearly looks like a great opportunity for call options.