Dividend Increase: OHI and O

ID-100130817-300x200 Dividend Increase: OHI and OOmega Healthcare Investors (OHI) just declared $0.66 quarterly dividend. This is an increase of 1.5% from $0.65.

I own 127 shares, so this will increase my annual dividend income by $5.08.

Realty Income Corporation (O) just declared $0.219 monthly dividend. This is an increase of 3.1% from $0.2125.

I own 22 shares, so this will increase my annual dividend income by $1.72.

In total both raises increased my forward dividend income to $4,622.28.

I updated both my Passive Income page as well as my Portfolio page to reflect the changes.


My Thoughts on OHI:

OHI has seen its price drop significantly from the last time I bought shares on August 2 last year. If you take a look at my portfolio you can see that I am 20% in the red. OHI has been increasing their dividend for 22 consecutive quarters!! That is an amazing streak. All of the dividend increases during that time frame has been anywhere from 1.5%-3.4%. They currently have a 9.76% dividend yield. So not only are you getting a high dividend yield but you are getting a growing dividend.

One more thing. OHI has a safe dividend payout ratio of 70% when looking at 2016 Funds From Operation (FFO). Analysist expect, for 2018, to be a flat year. Even if FFO is flat, the dividend is still safe.

If I was not overweight on this stock, I will be buying a whole lot right now.

I find this stock to be undervalued and a great opportunity.


My Thoughts on O:

O was my first dividend growth investment I made way back on July 30, 2013. Looking back I should have bought more. They have been paying me dividends every month since that time. It has been a fantastic first buy for me.

Right now O has a dividend payout ratio of 83% with a current PE of 18.4 using FFO. O 10-year PE average is 18.4 as well. So this leads me to believe that O is currently in fair value territory. However, I do want to buy more shares of O but not at this time. I would like to see it at $50 a share or lower before I buy more shares.

This is one company that I would like to own more of and do plan on buying. I think the stock is at fair value and would recommend a HOLD for a PE between 17-18 FFO before investing into it.


Thanks for reading, and don’t forget to follow me for great investment ideas.



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  1. Hey – it is all increasing the correct direction.

    I think the rising interest rate fears will keep the prices of REITs heading lower. So make your list of the top ones you want to buy and your price target to be ready for it.

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