How Safe Is Omega Healthcare's Dividend?
When the coronavirus pandemic hit in 2020, senior housing was on the front lines. Operating performance has improved since the worst of the industry downturn, but Omega Healthcare Investors (NYSE: OHI) is starting to show increasing signs of stress. It just made one notable dividend decision that shouldn't be ignored. That's especially true when you look more closely at the dividend coverage numbers from the third quarter.
The big problem for senior housing properties is that they are specifically designed to bring older adults into a group setting. That's the perfect environment for the coronavirus to cause the most damage, since it is particularly deadly for older adults and spreads easily when people congregate in one place. Add in the fact that nursing homes generally house residents that are infirm, and nursing home-focused real estate investment trust (REIT) Omega Healthcare got hit particularly hard.
Image source: Getty Images.
Source Fool.com