From what I can tell, there is no divvy growth? Am I missing something?
One of my favorite, sort of unnoticed value stocks is OHI. Not really beaten down much, but nice safe sector, or as safe as it can be, and with a yield of 7.70, it still raises divvy's. OHI IS indeed a pure play nursing home company that obviously will be particularly vulnerable to Medicare rate cuts.
Over the last few years, in order to survive, a lot of nursing homes have added more rehab facilities in order to attract more Medicare reimbursed residents. Medicare pays about $500 a day for short-term stay services, whereas a long-term care resident might only pay about $120 a day. I work with seniors in Fl., and have watched this transition, and the hospitals and rehab centers work well together. They may not provide loving services to their patients, and I would rather die than be in one, but even the really crappy ones are FULL.
The healthcare cuts and threats of more have caused many nursing homes to close. Of course, that means that the number of new facilities is shrinking, yet the demand for "skilled nursing care" continues to be stronger than ever: the 85+ population growth is soaring, and SOMEONE has to care for them. I put skilled in quotes, because my commentary on the employees in these facilities I have visited would be X-rated.
Since 2004, OHI has grown its portfolio by over 200% (17.1% CAGR from 2004 to 2011). I keep looking for some weakness to add to my position, but I would like to get it near $20; might not happen. OHI is one of just five other healthcare REITs that has maintained and increased dividends for over five years, and National Health Investors and OHI have both maintained a record of ten consecutive years of dividend increases.
OK, enough pumping....I just really like this company and it's divvy in these uncertain times. |
