Omega Healthcare Is Up 8.64% In 2022, Yields 8.2%, And My Target Is $37.54

Summary

• Omega Healthcare still looks undervalued to me and my price target is $37.54 which would place them trading at their peer group average from a price to FFO valuation.
• OHI has never reduced or cut its dividend, which has created a long-term total return opportunity even though shares haven't appreciated much in the past 5 years.
• OHI has outperformed VNQ over the past 5 years looking at total return and I believe the next 5 years will be a replication of this statistic.
• Through reinvesting the dividends, my share count has increased by 48.72%, while 52.99% of my invested capital has been paid in almost 5 years.

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Unlike the major indices, Omega Healthcare Investors (NYSE:OHI) is positive in 2022, up 8.64%, but it's still down -2.74% over the past year and well off its 2020 highs. Pre-pandemic, OHI spent a considerable amount of time trading over $40 per

Analyst’s Disclosure:I/we have a beneficial long position in the shares of OHI, MPW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters.