Is This 8.5% Yield Safe?

To investors who want to live off the returns from their income portfolios, dividend safety is of utmost importance. That’s why companies with solid dividend growth track records have always been highly sought after. The problem is, though, because of their popularity, well-known dividend growth stocks don’t offer much in terms of yield. In fact, if you go over the list of companies that can be considered blue-chip names, you’ll see that very few of them pay out more than five percent.

In other words, if you want to find the true high-yield stocks, you would have to look at the lesser-known names trading in the stock market, such as Omega Healthcare Investors Inc (NYSE:OHI). Omega Healthcare Investors may not be a familiar name to consumers, but the company is actually quite established in its business: real estate, particularly healthcare real estate. The company’s portfolio consists of more than 900 operating healthcare facilities located in 41 U.S. states and in the U.K. Approximately 83% of those properties are skilled nursing/transitional care facilities. The remaining 17% are senior housing properties. OHI is currently the largest real estate investment trust (REIT) that focuses on skilled nursing facilities.

Source: Income Investors

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