Healthcare stocks (XLV) have gained 14.5% over the last year, thereby keeping pace with the overall market as measured by the S&P 500 (SPY) which gained 15.0% over the same time period. However, there are a variety of reasons why healthcare REITs have significantly underperformed, many of them delivering negative returns, as shown in the following table.
There are two big risks that have investors scared about Omega Healthcare (OHI) and its big +8% dividend yield. As contrarians, we like the opportunity this healthcare REIT presents. Watch our recent video to learn more.
There is a reason why Omega Healthcare Investors’ (OHI) yield (7.7%) and short-interest (21.2%) are so high. And yesterday’s release of the new GOP healthcare bill did nothing to improve the situation This article provides an update on Omega, highlights several bad reasons to invest, and concludes with our views on the right way to think about this high-yield REIT.
Last week was volatile and painful for many higher-yielding securities. For example, REITs, BDCs and MLPs (all known for high-yield) sold off significantly. We are in no way suggesting last week was a bottom, but we do believe some high-quality companies have sold off thereby making for more attractive entry points for long-term investors. This article highlights 100 high-yield equities that sold-off last week, and then reviews 10 specific opportunities that long-term income-focused investors may want to consider.
If you are looking for low-risk low-reward dividend stocks, this article is NOT for you. However, if you’re looking for higher income yields, and risks that are tilted in your favor, then you may want to consider the ideas highlighted in this article.
Rising interest rate expectations have pushed many income-hungry investors out of traditional fixed income categories and into high-dividend stocks, such as Target. Some income-focused investors believe they can add to Target's high yield by selling covered call options against their shares. We believe this is a risky and unattractive strategy. This article highlights three specific options trades that we consider far more attractive for generating high income and achieving exceptional long-term total returns.
The 3-month total return for most healthcare REITs has been ugly. The group has pulled back as interest rate expectations have increased and investors have been selling “safe-haven” stocks in general. However, two mega-trends underlying the healthcare REIT group remain intact. And in addition to reviewing these mega-trends, this article provides high-level data for more than 20 big-dividend healthcare REITs, and then highlights three specific opportunities that we believe are worth considering.
Big-dividend REITs have underperformed the rest of the market, particularly since the election, as interest rate expectations have increased, and investors have sold “safe-haven” stocks in favor of more aggressive-growth sectors. In our view, this has created some attractive investment opportunities. This article provides data on 60 Industrial and Retail REITS yielding over 4%, and also highlights a few of our favorites.
Prospect Capital is an income-investor favorite because it offers an outsized 11.6% dividend yield, paid monthly. However, we sold our shares of Prospect last week because we believe the market cycle and unintended regulatory consequences may be turning against the company, and its valuation and dividend coverage ratio are becoming decidedly less attractive. This article reviews Prospect's big risks, and then highlights three big dividend investments we like more than Prospect Capital.
If you are an income-focused investor, attractive yield can be hard to find. Especially, considering chronically low interest rates, the constant threat of stock market declines, and the uncertainty of the soon-to-be aligned White House and Congress. For your consideration, we have provided reports for ten high-income opportunities that we consider attractive.
Omega Healthcare Investors (OHI) is an attractive, big-dividend (8.5%), REIT that has recently delivered poor performance (as shown in our recent article: Big-Dividend Healthcare REITs, Ranking the Best and Worst). Omega faces macroeconomic headwinds, heightened Affordable Care Act uncertainties, and a very pessimistic market narrative. However, we believe these risks have created an attractive opportunity for diversified long-term investors.
Omega Healthcare Investors (OHI) is a Real Estate Investment Trust (REIT) with a high 6.9% dividend yield. We believe the dividend is safe and likely to grow. And if you are comfortable with the unique risks of a Skilled Nursing Facilities REIT, Omega currently offers an outstanding opportunity to buy in at a very attractive price.