Owens & Minor: Medical Gains in Logistics

11/28/2017 5:00 am EST

Focus: HEALTHCARE

Vita Nelson

Founding Publisher and Editor, Moneypaper

Owens & Minor (OMI) is a healthcare logistics company specializing in contracting packages of healthcare products for hospitals, notes dividend reinvestment expert Vita Nelson, editor of DirectInvesting.

The company provides supply chain services to healthcare providers and manufacturers of healthcare products, including disposable medical supplies as well as devices and implants.

It is considered a diversified business with competitive advantage over its rivals and the company enjoys a solid management and excellent corporate culture.

It has paid dividends to investors since 1926, and has increased its payments for 19 consecutive years. During the past five years it has increased its dividends at an average rate of 3.7%, with its quarterly payment of $0.26 currently providing a yield of 4.20%.


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Its price to earnings ratio of 15.6 is 39.3% below the S&P 500® index’s current P/E, and according to Morningstar, the stock is trading 33.6% below its Fair Value Estimate, making it attractive for investors with a long-term investment horizon. Technically, the stock is trading 40.9% below its all-time high and 33.6% below its 52 weeks high.

OMI’s dividend reinvestment plan charges no fees for cash investing, dividend reinvestment, automatic investment or termination of the plan. With the stock being fundamental and technically attractive, this may be an excellent entry point for investors with a longer-term investment horizon.

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