Is NYSE:OHI suited for dividend investing?

Take a closer look at OMEGA HEALTHCARE INVESTORS (NYSE:OHI), a stock of interest to dividend investors uncovered by our stock screener. NYSE:OHI excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Dividend Assessment of NYSE:OHI

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:OHI has achieved a 8 out of 10:

• OHI has a Yearly Dividend Yield of 8.70%, which is a nice return.
• OHI's Dividend Yield is rather good when compared to the industry average which is at 6.04. OHI pays more dividend than 81.45% of the companies in the same industry.
• OHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.49.
• OHI has been paying a dividend for at least 10 years, so it has a reliable track record.
• OHI has not decreased their dividend for at least 10 years, which is a reliable track record.
• OHI's earnings are growing more than its dividend. This makes the dividend growth sustainable.

A Closer Look at Health for NYSE:OHI

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:OHI has earned a 5 out of 10:

• With a decent Debt to FCF ratio value of 19.37, OHI is doing good in the industry, outperforming 70.16% 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's Current ratio of 2.89 is amongst the best of the industry. OHI outperforms 89.52% of its industry peers.
• A Quick Ratio of 2.89 indicates that OHI has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 2.89, OHI belongs to the top of the industry, outperforming 89.52% of the companies in the same industry.

Analyzing Profitability Metrics

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:

• Looking at the Return On Assets, with a value of 2.47%, OHI is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 6.34%, OHI belongs to the top of the industry, outperforming 81.45% of the companies in the same industry.
• OHI has a better Return On Invested Capital (3.08%) than 62.10% of its industry peers.
• Looking at the Profit Margin, with a value of 27.21%, OHI belongs to the top of the industry, outperforming 81.45% of the companies in the same industry.
• OHI has a Operating Margin of 41.72%. This is amongst the best in the industry. OHI outperforms 87.90% of its industry peers.
• OHI has a better Gross Margin (98.15%) than 98.39% of its industry peers.

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Our latest full fundamental report of OHI contains the most current fundamental analsysis.

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.