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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (10854)	1/26/2012 10:11:45 AM
From: Paul Kern	Read Replies (1) \| Respond to of 34328

OHI. The article misses a big risk. OHI has a reasonable PE and a nice yield, but there is no mention that OHI is 98% skilled nursing and dependent on medicare. I prefer to own companies where performance does not depend on factors outside their control. There are plenty of other reits which fit the bill. Things may be OK, but you could get nailed with this one. MPW might be a safer one in the health sector -- hospitals. It has a similar PE and yield. As far a I know, OHI does not operate any of these facilities. They own the real estate and lease it the operators.

To: Grommit who wrote (10854)	1/26/2012 1:13:31 PM
From: Bocor	Respond to of 34328

OHI has it's risks for sure, but I am paid to assume that risk. Over the longer term I think I will be fine, although it is a fairly small portion of my portfolio. As a "senior" myself, I tend to have the philosophy that "old people" have to go somewhere as they age, and their children are not eager to add an addition to their homes. I live in Fl., and see that there are really nice, "relatively" affordable ALF's and ILF's, and more are cropping up all the time. There are also some horrific ones, and yes, money matters as you age. Bottom line is that seniors have to live in relative safety somewhere, they need to rehab somewhere, and need to receive some kind of reasonable medical somewhere, unless we decide as a country to throw grandma from the bus. I haven't ruled out the latter, which is why OHI is a small portion:)