Claudiu Ciungan
@claudiu
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EPS 141 - Stocks we don’t feel comfortable about going into a potential recession

Dividend Talk

Omega Healthcare Investors: A High-Dividend REIT with a BBB- Investment Grade

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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.

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