Exploring NYSE:OHI's dividend characteristics.

Our stock screening tool has identified OMEGA HEALTHCARE INVESTORS (NYSE:OHI) as a strong dividend contender with robust fundamentals. NYSE:OHI exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Evaluating Dividend: NYSE:OHI

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:OHI was assigned a score of 8 for dividend:

• OHI has a Yearly Dividend Yield of 8.78%, which is a nice return.
• Compared to an average industry Dividend Yield of 6.17, OHI pays a better dividend. On top of this OHI pays more dividend than 84.38% of the companies listed in the same industry.
• OHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.55.
• OHI has been paying a dividend for at least 10 years, so it has a reliable track record.
• OHI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• OHI's earnings are growing more than its dividend. This makes the dividend growth sustainable.

How We Gauge Health for NYSE:OHI

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:OHI has achieved a 5 out of 10:

• With a decent Debt to FCF ratio value of 19.37, OHI is doing good in the industry, outperforming 71.09% of the companies in the same industry.
• A Current Ratio of 2.89 indicates that OHI has no problem at all paying its short term obligations.
• OHI has a better Current ratio (2.89) than 89.06% of its industry peers.
• OHI has a Quick Ratio of 2.89. This indicates that OHI is financially healthy and has no problem in meeting its short term obligations.
• OHI has a better Quick ratio (2.89) than 89.06% of its industry peers.

How do we evaluate the Profitability for NYSE:OHI?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:OHI, the assigned 7 is noteworthy for profitability:

• OHI has a better Return On Assets (2.47%) than 71.88% of its industry peers.
• OHI has a Return On Equity of 6.34%. This is amongst the best in the industry. OHI outperforms 80.47% of its industry peers.
• OHI's Return On Invested Capital of 3.08% is fine compared to the rest of the industry. OHI outperforms 62.50% of its industry peers.
• The Profit Margin of OHI (27.21%) is better than 81.25% of its industry peers.
• In the last couple of years the Profit Margin of OHI has grown nicely.
• OHI has a better Operating Margin (41.72%) than 87.50% of its industry peers.
• The Gross Margin of OHI (98.15%) is better than 98.44% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of OHI for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.