"Housing starts have swooned, foreclosures have jumped and home prices saw their steepest drop in 26 years," notes income expert Carla Pasternak, who nevertheless is suggesting a real estate investment.

In her High Yield Investing she explains, "Our money-making opportunity isn't based on the housing market; rather, it's with a REIT -- Omega Healthcare Investors, Inc. (NYSE: OHI).

"REITs and housing are both real estate, but that's where the likenesses begin and end. Property-holding equity REITs invest in commercial real estate. And commercial properties continue to generate steady cash flow from rental income, thanks to long-term leases.

"Above-average dividends are what allow REITs to pack a punch. These companies must distribute at least 90% of their profits to shareholders, making them especially attractive to income investors.

"Founded in 1992, Omega manages a $1.3 billion portfolio of over 200 hospitals and nursing homes in diverse locations across 28 states. The company leases the properties to established healthcare operators.

Continue reading Omega Healthcare (OHI): The right REIT for healthy returns

Omega Healthcare (OHI): The right REIT for healthy returns originally appeared on BloggingStocks on Thu, 12 Jun 2008 13:30:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: ConocoPhillips (COP) and Starbucks (SBUX) were two notable companies on the upgrade list today:

• Deutsche Bank upgraded ConocoPhillips (NYSE:COP) to Buy from Hold with an $80 target, citing expectations for a reduction in spending and a shift towards share buybacks; additionally,
• Starbucks Corp. (NASDAQ:SBUX) was upgraded to Buy from Neutral with a $42 target at UBS, citing valuation.

OTHER UPGRADES:

• Wachovia upgraded the Healthcare REIT Sector to Market Weight from Underweight, citing decreasing interest rate trends and more positive trends of individual stocks in the sector.
• RBC Capital Markets upgraded Blue Nile Inc. (NASDAQ:NILE) to Outperform from Sector Perform with a $40 target, citing benign trends on both diamond and keyword pricing, efficiencies in marketing, share buybacks and valuation.
• Goldman Sachs upgraded Vodaphone PLC (NYSE:VOD) to Buy from Neutral on valuation.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst upgrades 12-5-06: ConocoPhillips and Starbucks upgraded to Buy originally appeared on BloggingStocks on Tue, 05 Dec 2006 10:54:00 EST. Please see our terms for use of feeds.