Balancing Dividends and Fundamentals: The Case of NYSE:OHI.

Last update: Jan 25, 2024

Consider OMEGA HEALTHCARE INVESTORS (NYSE:OHI) as a top pick for dividend investors, identified by our stock screening tool. NYSE:OHI shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Dividend Examination for NYSE:OHI

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:OHI has been assigned a 8 for dividend:

With a Yearly Dividend Yield of 9.11%, OHI is a good candidate for dividend investing.
OHI's Dividend Yield is rather good when compared to the industry average which is at 5.92. OHI pays more dividend than 89.68% of the companies in the same industry.
OHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.50.
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.
The dividend of OHI is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Analysis for NYSE:OHI

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:OHI scores a 5 out of 10:

OHI's Debt to FCF ratio of 19.37 is fine compared to the rest of the industry. OHI outperforms 70.63% of its industry peers.
OHI has a Current Ratio of 2.89. This indicates that OHI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.89, OHI belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
A Quick Ratio of 2.89 indicates that OHI has no problem at all paying its short term obligations.
The Quick ratio of OHI (2.89) is better than 90.48% of its industry peers.

Assessing Profitability for NYSE:OHI

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:OHI has earned a 7 out of 10:

With a decent Return On Assets value of 2.47%, OHI is doing good in the industry, outperforming 72.22% of the companies in the same industry.
The Return On Equity of OHI (6.34%) is better than 80.95% of its industry peers.
With a decent Return On Invested Capital value of 3.08%, OHI is doing good in the industry, outperforming 61.11% of the companies in the same industry.
OHI has a Profit Margin of 27.21%. This is amongst the best in the industry. OHI outperforms 80.95% of its industry peers.
In the last couple of years the Profit Margin of OHI has grown nicely.
The Operating Margin of OHI (41.72%) is better than 87.30% of its industry peers.
OHI has a better Gross Margin (98.15%) than 98.41% of its industry peers.

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

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.