Sold 58 shares Omega Healthcare Investors

This week I sold all my 58 shares Omega Healthcare Investors at a price of $38,26. As a result of this sale I reduce my yearly estimated dividend income by $136,56.

My average purchase price of the Omega Healthcare shares is $27,90 so I’m removing a 9,5% yield on cost position from my portfolio.

My return on investment in euro’s:

Purchase 58 shares-1.365,27
Sold 58 shares1.974,22
Dividend220,04
Profit828,99
Profit %60,7%
ROI per year31,9%

I decided to sell Omega Healthcare mainly because I don’t feel comfortable with the performance of the tenants of Omega Healthcare Investors. Tenants of Omega Healthcare are companies running skilled nursing facilities and many operators in this market are struggling to stay profitable.

A few times already Omega Healthcare Investors adjusted their contract with major tenants resulting in reduced rent income or taking over capital investments which normally were paid by the tenant.

As a result the payout ratio of Omega Healthcare is very high at the moment and as I see it realistic that some more rent discounts have to be given to struggling tenants I decided to close this position.

I will miss the steady dividends I enjoyed since 2017, but I’m not feeling comfortable by the performance of the tenants of Omega Healthcare Investors so I’m happy to close the position and realize the capital gain.

Dividend Increase Omega Healthcare

Today Omega Healthcare did announce a dividend increase from $0,65 per quarter to $0,66 per quarter. This is an increase of 1,5%. The yearly expected dividend per share is now $2,64.

I own 53 shares of Omega Healthcare so my yearly expected dividend increased with $2,12.

The expected yield on cost is now up from 9,61% to 9,76%.

Purchase 53 shares Omega Healthcare

Today I bought 53 shares Omega Healthcare at a price of $27,05

At the moment Omega Healthcare is paying a quarterly dividend of $0,65. The expected yield on cost is 9,61%. With this purchase I expect to add $137,80 / €115,43 in yearly dividends.

The share price dropped from over $32 to $27 dollar due to Omega Healthcare reporting some issues with 2 out of the 77 tenants.