Omega Healthcare Investors targets end-of-life care and offers around 10% dividend to investors. Though they have experience in restructuring clients and have been doing well, they struggled with hiking dividends even before COVID-19. During the pandemic, many tenants struggled, and around 10% of the operators missed mortgage payments. Their FFO funds have been relatively good, but the dividend was not covered. While the company seems committed to the dividend, any crisis that cuts into government funding could be the 'nil in the coffin' for their investment case.
In this week's episode, we discuss 5 companies in our portfolios that we don't feel comfortable owning going into a recession.
News of the week includes Novo Nordisk Market cap which now exceeds Nestle. And Unilevers Shrinkflation on Ice cream.
Companies mentioned From EMF are HPQ, Danone, BASF,
The companies mentioned by EDGI are Omega HealthCare and 3M.
Reference Material -
chowder rule Archives - European Dividend Growth Investor (europeandgi.com)