Why NYSE:OHI is a Top Pick for Dividend Investors.

Last update: Jan 4, 2024

OMEGA HEALTHCARE INVESTORS (NYSE:OHI) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:OHI demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

ChartMill's Evaluation of Dividend

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:OHI scores a 8 out of 10:

OHI has a Yearly Dividend Yield of 8.63%, which is a nice return.
OHI's Dividend Yield is rather good when compared to the industry average which is at 5.73. OHI pays more dividend than 88.28% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, OHI pays a better dividend.
OHI has paid a dividend for at least 10 years, which is 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.
The dividend of OHI is growing, but earnings are growing more, so the dividend growth is sustainable.

Looking at the Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:OHI has received a 5 out of 10:

The Debt to FCF ratio of OHI (19.37) is better than 70.31% of its industry peers.
A Current Ratio of 2.89 indicates that OHI has no problem at all paying its short term obligations.
OHI's Current ratio of 2.89 is amongst the best of the industry. OHI outperforms 89.84% of its industry peers.
A Quick Ratio of 2.89 indicates that OHI has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.89, OHI belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.

Evaluating Profitability: NYSE:OHI

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:OHI scores a 7 out of 10:

The Return On Assets of OHI (2.47%) is better than 72.66% of its industry peers.
OHI has a better Return On Equity (6.34%) than 81.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.08%, OHI is in the better half of the industry, outperforming 61.72% of the companies in the same industry.
OHI has a better Profit Margin (27.21%) than 81.25% of its industry peers.
OHI's Profit Margin has improved in the last couple of years.
The Operating Margin of OHI (41.72%) is better than 87.50% of its industry peers.
With an excellent Gross Margin value of 98.15%, OHI belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of OHI

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.