Omega Healthcare (OHI) pays a big growing dividend (7.2%), and it has recently underperformed many of its healthcare REIT peers. Some investors are quick to sing its praises as a “value play,” but it is most certainly exposed to very real risks. Specifically, the evolving skilled nursing facilities industry calls into question the source of Omega’s future revenues particularly with regards to entitlement reform. This article provides our views on Omega, and addresses the all-important question: Is Omega worth the risk?
Value stocks, dividends, blue chips and capital appreciation.
It’s been a choppy year so far for big-dividend REITs. This has created some attractive buying opportunities. For your consideration, we’ve provided a ranking of the best and worst performing big-dividend REITs year-to-date, and we’ve also provided five general recommendations on how to “play” the current state of the REIT sector. Further, we cover several specific REIT opportunities in this article, and provide our Top 10 Big-Dividend REITs worth considering here.
If you like big dividends and discounted prices, Stag Industrial (STAG) may have recently caught your eye. Its shares have fallen 12% since August 1st, and its dividend yield (paid monthly) has risen to 6.3% (annually). And despite Stag’s unique risk exposures, we’ve ranked it #10 on our recent list of 10 Big Dividend REITs Worth Considering because of its diversified approach, reasonable valuation, continued growth opportunities, and big monthly dividend.
If you like big dividends and discounted prices, you may have noticed that mortgage REIT New Residential (NRZ) pays an enormous 13.5% dividend and its shares have declined nearly 8% in the last two months. NRZ emerged following the financial crisis as banks had to shed risk. NRZ continues to generate big profits with its mortgage servicing rights business, its heavy use of leverage, and its expanding call rights securities strategy. But the big question… is it safe?
The Blue Harbinger Weekly:
A members-only weekly report on Blue Harbinger's investments and the market.
This week's weekly is a continuation of our free report "Top 10 Big Dividend REITs Worth Considering" except in this members-only edition, we include all the details for the Top 5. We also provide updates on two of our existing REIT holdings (which happen to also be ranked in the Top 5).
This week’s Weekly reviews our detailed heat map displaying what has been working and what has NOT been working so far this year. Specifically, we look at the best and worst by sector, style, the Dow Jones stocks, and many more. We believe there is a tendency for mean reversion in the market whereby what has been working best may not deliver the best returns going forward, and vice-versa. For example, small cap value, real estate and several of the worst performing stocks in the Dow may be poised for future outperformance.
This chart shows the returns on the 10 stocks and 3 ETFs we purchased in our Income Equity strategy on January 8th of this year (the names are reserved for members-only). The only other trades we've done this year in the Income Equity strategy were on May 6th when we purchased 6 additional stocks which have also performed very well. This week’s Weekly provides our view on when to take profits versus when to let your winners run!
In a continuation of our free report titled "12 Attractive Equity Options for Income Investors," this members-only report contains the top 5. Four of the top five are call options on big-dividend stocks we currently own, and the fifth is a put option on a big-dividend REIT that we follow.
Investors generally go through multiple phases during their investment life cycle, including the contribution phase and the distribution phase. This week’s Blue Harbinger Weekly reviews a couple smart strategies for each of these two important investment phases. And we also provide an update on an attractive dividend growth stock that is flashing a buy signal right now (and yes, we own it).
Friday’s big 2.5% decline in the S&P 500 has left many investors nervous. After all, it wasn’t that long ago that the market sold off 10% to start 2016. And investors still remember late 2007 to early 2009 when stocks lost more than 50% of their value. In this week’s Weekly we discuss the merits of “moving to cash” in order to avoid the risk. We also review this week’s new investment idea, a big dividend mortgage REIT that benefits from more market turmoil.