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

To: Paul Senior who wrote (25897)	11/6/2016 8:54:59 AM
From: Ditchdigger	Read Replies (1) \| Respond to of 34328

I've been riding LTC and NHI down in the healthcare reit space so my opinion probably isn't worth squat. But regards OHI, I'd wait and see if the support at 29 holds. A print of 28.99 would not be a good thing and could result in lower prices, technically speaking.

To: Paul Senior who wrote (25897)	11/6/2016 10:21:16 AM
From: E_K_S	1 Recommendation Recommended By debrahaugen Read Replies (1) \| Respond to of 34328

I bought OHI w/i the last year for the ROTH account. I paid higher prices w/ a small add w/i the last two weeks. I think my average price is around $31.50/share. The main reason I like OHI is their dividend coverage. From the Medical REITs I looked at they had the largest dividend coverage of the group (based on the last three years). The current yield is fine but their coverage was the most important factor for me. OHI has exposure to the Senior Assisted Living sector which may/could be a negative based on who/what pays those fees. You have .self paying. customers vs Medicare payers. Medicare limits the fees they will reimburse which can put a cap on the amounts and the future growth in those fees. OHI has a large percentage of their clients as 'self' payers (over 90% from my last look) but still is exposed to Medicare payment terms/caps if/when they take more medicare clients and/or 'self' payers follow Medicare future payment terms. There are a lot of SA articles that go into this w/ more detail. My take away was that this is going to be a larger growing market w/ aging baby boomers. The total market will grow and now 'self' payer revenues are growing but I suspect at some point will level out and reimbursable medicare payments will represent a growing part of the revenues in the future. OHI is pretty big but management seems to be proactive on building facilities that can accommodate the growing demand from these different payer groups. There is a move to other types of Senior Living facilities that are not classified as 'assisted' and require less supervision/operating expenses that may be an area they can expand into. There was some discussion that OHI was going to spin off their assisted care facilities into a separate company but nothing yet. This would eliminate that revenue/payment risk for the parent company. My strategy is to hold a basket of these Medical Reits both growers (MPW, CIO) and steady payers w/ excellent dividend coverage (OHI), Note CIO is not a 100% Medical REIT but 35% of their revenues are from long term contracts (Kaiser & one other) which service the medical sector. I would feel comfortable building the dividend portfolio w/ 20% of these Medical Reits (now about 5%) simply because the U.S. devotes f17.6 percent of it's GDP in 2010 to health care ( this is larger than any other country).. That is/was my thinking. Now I need to see what I can sell so I can add more shares as prices sell off. EKS