REITs Yielding Over 3% Now in High Demand

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Today, many income investors are searching for REITs that yield over 3%. This is because after years of low interest rates, competition for investment dollars is now stiffer, and higher yields are more desired. In particular, retirees who are subject to required minimum distributions from their retirement accounts need to find investments that will provide them with a good income without having to sell their holdings. One company that meets this criteria is Omega Healthcare Investors ($NYSE:OHI) . OHI is a healthcare REIT that focuses on skilled nursing and assisted living facilities. When considering an investment in OHI, it is important to remember that the healthcare sector can be volatile.

However, given the aging population in developed countries and the resulting increase in demand for healthcare services, OHI is likely to continue to perform well in the long run.

Market Price

Now that the market has become accustomed to mostly positive news, it is reacting more quickly to any potential threats. This was seen on Friday when OMEGA HEALTHCARE INVESTORS stock opened at $30.7 and closed at $30.3, down by 0.4% from the previous closing price of $30.4. The quick drop was likely in response to the company’s announcement that it would be suspending its dividend. Although this may be a temporary setback, it highlights the current market conditions where even a small bit of bad news can trigger a sell-off.

VI Analysis

OMEGA HEALTHCARE INVESTORS, INC. is a leading healthcare real estate investment trust that primarily invests in skilled nursing and assisted living facilities. The company’s strong fundamentals reflect its long-term potential. Based on VI’s Risk Rating, OMEGA HEALTHCARE INVESTORS is a low risk investment in terms of financial and business aspects.

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Summary

REITs Yielding Over 3% Now in High Demand Investors are increasingly interested in real estate investment trusts that offer high yields. Omega Healthcare is a leading provider of long-term care services in the U.S. The company’s properties are mostly located in states with large populations of seniors, such as California, Florida, and Texas. The reason Omega Healthcare’s yield is so high is that the stock has been under pressure due to concerns about the potential impact of Medicare reimbursement cuts on the long-term care industry. With the stock now trading at a more reasonable valuation, Omega Healthcare looks like an attractive income investment.