A person way money traders can make prudent conclusions on which dividend stocks to obtain is by studying the past heritage of a company. Has there been dividend expansion? Have there been any suspensions or cuts to the dividend? What is the typical generate of the dividend in excess of time?
It is generally handy to use a 5-12 months expression when assessing a company’s dividend history. With that claimed, here’s a breakdown of a stock with a stable historical past of dividend payments due to the fact September 2017.
Omega Health care Investors Inc. (NYSE: OHI) is a Hunt Valley, Maryland, healthcare authentic estate financial commitment have confidence in (REIT) that has owned and operated assisted dwelling and proficient nursing facilities since 1992. Its 921 services are unfold throughout 42 states through the U.S., and it owns a single facility in the United Kingdom.
As a REIT, Omega is demanded by legislation to return at least 90% of its taxable profits to its shareholders. Therefore, like many other REITS, Omega has compensated its shareholders a fairly large dividend yield during its historical past. The current yearly dividend of $2.68 yields just in excess of 8.2%. The beta on Omega is .97, or marginally less unstable than the U.S. stock current market as a entire.
If you invested $10,000 in Omega stock 5 several years in the past, you would have procured 308 shares at about $32.46. Your initially quarterly dividend payment of 65 cents for every share would have been paid at the end of October 2017, and you would have received $200.20.
Above the earlier 5 years Omega has slowly enhanced its quarterly dividend payment from 65 cents to 67 cents. The complete dividends paid out in excess of 5 yrs on 308 shares would have been $13.31 for every share so you would have gained $4,099.48. Your whole expense would now be worth $14,099.48, or a return of 41%.
Ironically, Omega’s recent cost of $32.42 is just about equivalent to what it was five years in the past. The inventory has been as superior as $36.50 and as low as $18.68 in the course of that five-calendar year time period, but plainly this is not the type of stock from which investors can anticipate a lot appreciation.
Nevertheless, if you experienced reinvested Omega shares in a dividend reinvestment system (DRIP), your primary 308 shares would have grown to 464.74 shares for a total return of 50.67%, or an average of 8.54% for each year. You would now have $15,065.30.
So to summarize, Omega is a low-volatility, gradual-increasing profits stock that is nicely-suited for extensive-term earnings-oriented investors — in particular if they do not require instant cash flow and have the potential to reinvest their dividends for quite a few a long time.
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