That's my thinking--all of the HREITS are at or near their all-time high so they are pricey now and because of their rapid rise in price the last month the divvy percentage is down BUT the sector is strong. I have been in their Drip programs for many years and I still contribute regardless of the price and I have been nicely rewarded. OHI pays the highest dividend and seems to be a good investment but that is the only HREIT that gives me a tad of concern because it is so highly focused in one area.
You are correct. So spreading my investmenting in the other subcategories of health care reits - really is spreading my risk in an area that is pretty sure to be strong because of the baby boomers.
Airlease-the HREIT sector is much more broad based then OHI's commitement to skilled nursing facilities-most of the other reits have hospitals,Senior housing facilities along with the golden goose (medical buildings)
If you check on the industry you will see that OHI is very limited by what they lease.
Take a look at SBRA. I got in with in the last year and it's been great. Again, currently high but future looks good.
Also, check into BDCs. With banks being constrained they will have many opportunities. They are limited to 2 to 1 leverage and pay double digit dividend yields. My favorites are PNNT, MCC, ARCC, and TICC. Also like KCAP, GLAD and BKCC. Dividends should rise and multiples expand over the next few years. GL!
"OHI is trading as high as it's been since the 1990's"
Yes it is but it is a very different company now. As far as an offering - as long as they can take the money and get a far better return on it then the divi they pay - it is not a problem. Right now - OHI can probably find good prices on facilities - lock in fixed mortgages for the future - and turn additional profits.
Over 2 dollars in FFO and 1.60's in divi - nice cushion for future increases.
As tempting as it is to sell and take a profit here - I am probably holding my shares for years to come.