Wednesday, August 02, 2017 2:05:37 PM
Published: July 29, 2017 8:08 a.m. ET
Plenty of reason to like health care as a long-term investment no matter what Congress does
By
JEFF
REEVES
COLUMNIST
The battle in Congress over the Affordable Care Act continues, with more debate and votes over repealing parts of the law also known as Obamacare.
Of course, it’s anyone’s guess where things will wind up. Hard-line conservatives want to repeal it (they lost one vote to do that on Tuesday night), moderates want to modify it and Democrats want to preserve it.
But that shouldn’t bother investors one whit because the bottom line is that health care is a good investment in general. Several stocks in particular are excellent buys no matter what happens on the Hill.
Consider the following:
•Every health-care company that reported results this earning season through last Friday has beaten expectations, according to the latest FactSet earnings insight, although there have been a few misses since then.
Read: HCA’s weak quarter speaks to a long-term trend: People are going to the doctor less
•For 2017, the Health Care Select Sector SPDR ETF XLV, -0.29% is up over 17% year-to-date in 2017 vs. 11% for the S&P 500 index SPX, -0.07%
•Longer term, that health-care ETF is up over 110% in the last five years vs. about 80% for the S&P in the same period.
These stats show plenty of reason to like health care as a long-term investment regardless of the short-term uncertainty because of Congress. The bottom line is that the sector is mostly recession-proof as patients put their health-care expenses before other discretionary spending, and demographic tailwinds continue to create reliable growth industrywide.
Here's the real reason why U.S. health care is so expensive
So stop sweating the fight over the Affordable Care Act and consider a long-term investment in these five health-care stocks now:
Omega Healthcare
Health-care real estate and senior living properties are as close to a sure thing as you can get right now. Thanks to the unending march of demographics, increasing numbers of older Americans are creating high demand for senior living space and rehab facilities. When you find the right company, structured as a tax-sheltered real estate investment trust REIT, it’s all the better.
That’s what Omega Healthcare Investors Inc. OHI, -0.74% offers. That, and a tremendous 7.7% dividend for investors who buy at current levels.
Amid the current fight over health-care reforms and a chance that Medicare and Medicaid payments will be reduced, some investors may have their doubts. But Omega Healthcare is not a provider itself, just a landlord, and any changes in health-care regulations are the tenants’ problem to work out. Omega operates “triple-net lease” properties, which means it isn’t liable for the three big add-ons that handcuff other REITs — taxes, maintenance and insurance. Omega quite literally just collects the rent from the health-care companies that lease from it, and that’s that.
Yes, some of the tenants’ pain can trickle down. But this company is seeing sustained growth in both the top and bottom lines, and with a juicy dividend, that risk is more than outweighed by the potential rewards.
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http://www.marketwatch.com/story/ignore-the-obamacare-fight-in-congress-and-buy-these-5-health-care-stocks-2017-07-26?siteid=yhoof2&yptr=yahoo
In @ $30.90. See if this thesis works out.
OHI
Recent OHI News
- Omega Reports First Quarter 2024 Results and Recent Developments • Business Wire • 05/02/2024 08:15:00 PM
- Omega Announces Quarterly Dividend and Schedules First Quarter Earnings Release Date and Conference Call • Business Wire • 04/18/2024 06:31:00 PM
- Inspīr Carnegie Hill Presented with the Esteemed Reputation 800 List Award • PR Newswire (US) • 02/27/2024 04:17:00 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/12/2024 03:07:25 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/07/2024 09:36:30 PM
- Omega Reports Fourth Quarter and Full Year 2023 Results • Business Wire • 02/07/2024 09:20:00 PM
- Omega Announces Quarterly Dividend • Business Wire • 01/26/2024 08:12:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/12/2024 09:18:12 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/12/2024 09:17:23 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/12/2024 09:16:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/12/2024 09:15:21 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/12/2024 09:14:21 PM
- Omega Announces Fourth Quarter Earnings Release Date and Conference Call • Business Wire • 01/11/2024 08:24:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/05/2024 01:54:04 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 05:53:04 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 05:52:33 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 05:52:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 05:51:27 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 05:50:52 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/02/2024 01:00:39 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/04/2023 01:20:10 PM
- Omega Issues Business Update in Conjunction With Jefferies Real Estate Conference • Business Wire • 12/04/2023 01:05:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/03/2023 03:14:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/02/2023 08:26:58 PM
- Omega Reports Third Quarter 2023 Results and Recent Developments • Business Wire • 11/02/2023 08:20:00 PM
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