I think rate hike fears are a bit overblown. Historically reits have often done fine in rising rate enviros. The long term demographics will make this a solid investment over time IMO
The P/FFO is still cheap and the underlying fundamentals appear solid. It's a perfect long term stock.
And it's a good time to add if your time horizon is 2 yrs+. I just got antsy. Beginner traders who are not in for the long haul probably sold already.
Sold out because: Macros don't seem to be favoring health care or REITs.
AVIV shareholders seemed to dump right away. Not a vote of confidence.
I don't like the confusion that IR allowed about the divi. Should have been worthy of a more direct communication.
After the rate increase in September, OHI should go on sale again. Probably @ $33 a share.
Sentiment: Strong Sell
I hope it keeps going down, I picked up some shares on Friday and have a DRIP setup on it so the lower it goes the more shares I get.
Unless you want to sell I would quit worrying about the price. It's up over 60% + dividends in the last 2 1/2 years. Could be it got a lite bit ahead of its self, could be interest rate fears...who knows. I want to buy more, I wish it would drop another $4 or $5 bucks.
Good question. All REITs seem to have come under pressure. Also, an earlier post by ballab suggested that AVIV shareholders might have sold some of their stock. And OHI had to backtrack slightly on guidance since the deal with AVIV didn't close as quickly as they had expected. Nothing is changing in the long term story. Good price to add, imo.
It is hard for me to believe that the stock is still going down because of the misunderstanding of the div. payment..I realize that there are alot of people who do not do their research and act solely on emotion but certainly the financial institutions, who are the biggest buyers of stock, would no the difference.
You never know... I added around 38 will will add again if it falls appreciably. In any case I am DRIPing in the dividends.
Not to mention the fact that the yield is calculated on the annual payout, not the quarterly payout. If i were you, earl, I wouldn't be investing in stocks.
Fewer_cowbells... glad to see you known how to multiply. It seems that there are some out there who do not. Funny, isn't it?
Based on newly announced dividend, OHI pays 54 cents per quarter, or 2.16 per year. As I write this OHI is selling for 38.08, for an annual dividend yield of 5.67%. End of story.
Note that even the idiots at Yahoo Finance do not know how to divide... they have a yield of 3.5% since they cannot determine that the most recent dividend is for 2 months not 3 months. Amazing.
earljr1... do you not understand the concept of "prorated"? Honestly do you not? Do you not realize that 2/3 of a quarterly dividend for two months is exactly the same as the full dividend for three months? Really?