Omega Healthcare Investors, Inc. (NYSE:OHI) is a Real Estate Investment Trust (REIT) that provides financing and capital to the long-term health care industry, with a particular focus on skilled nursing facilities in the United States and the United Kingdom.
It is set to report its Q4 2024 earnings on Feb. 5, 2025. Wall Street analysts expect the company to post an EPS of $0.71, up from $0.68 in the year-ago period. According to Benzinga Pro, quarterly revenue is expected to reach $219.50 million, down from $239.32 million in the previous year.
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The company’s stock traded at approximately $38.78 per share 10 years ago. If you had invested $10,000, you could have bought roughly 258 shares. Currently, shares trade at $37.81, meaning your investment’s value could have declined to $9,750 from stock price appreciation alone. However, Omega Healthcare Investors also paid dividends during these 10 years.
Omega Healthcare Investors’ dividend yield is currently 7.09%. Over the last 10 years, it has paid about $25.10 in dividends per share, which means you could have made $6,472 from dividends alone.
Summing up $9,750 and $6,472, we end up with the final value of your investment, which is $16,222. This is how much you could have made if you had invested $10,000 in Omega Healthcare Investors stock 10 years ago. This means a total return of 62.22%. However, this figure is significantly less than the S&P 500 total return for the same period, which was 220.53%.
Omega Healthcare Investors has a consensus rating of “Buy” and a price target of $35.42 based on the ratings of 21 analysts. The price target implies more than 6% potential downside from the current stock price. Check out this article by Benzinga for five analysts’ insights on Omega Healthcare.
On Oct. 30, the company announced its Q3 2024 earnings, posting an FFO of $0.74, compared to the consensus of $0.72 and revenues of $276.028 million, compared to the consensus estimate of $264.447 million, as reported by Benzinga.
Taylor Pickett, Omega’s Chief Executive Officer, stated, “We are pleased with our third quarter results, as we continued to grow FAD per share, while also meaningfully de-levering the balance sheet. We have accretively invested approximately $834 million year-to-date and the pipeline continues to be strong. As a result, we are again increasing our 2024 AFFO guidance to be between $2.84 and $2.86 per share from our previous guidance of between $2.78 and $2.84 per share.”
Given the expected downside potential, growth-focused investors may not find Omega Healthcare Investors stock attractive. Conversely, the stock can be a good option for income-focused investors, who can benefit from the company’s solid dividend yield of 7.09%.
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