Omega Healthcare Investors: A Healthcare REIT That Under Promised And Over Delivered In The Last Decade

When I wrote my monthly update last Wednesday and had to write about my Seeking Alpha goal (writing 24 articles this year) I was actually feeling a little bit miserable about myself. I already had some valuation analysis done for Omega Healthcare Investors (OHI) and decided to put it in an article.

I have been a shareholder of Omega Healthcare Investors since December 2013. Back then I opened a position for roughly $30 a share. I was attracted by the consistent revenue growth in the past few years, high dividend growth rate and yield. This purchase has become one of my better buys in the past years with an annualized rate of return of almost 18%. I am contemplating adding to my position, but does that make sense when the stock has performed so wonderful the last 1.5 years? It must be overvalued, right? However there are some great companies like Johnson & Johnson, Colgate and Disney that constantly seem overvalued but still have the ability to provide great rate of returns for a shareholder. I am not comparing Omega to these companies in any meaningful way but still would like to investigate whether the current valuation merits a buy or not.

You can read the rest of the article here:

http://seekingalpha.com/article/3315655-omega-healthcare-investors-a-healthcare-reit-that-under-promised-and-over-delivered-in-the-last-decade