Health Care REIT (HCN) released its second-quarter earnings this week, and the results were broadly good. Funds from operations (FFO) came in at $1.09 per share, beating consensus estimates by a penny. HCN also reaffirmed its guidance for the full year, estimating that FFO will come in between $4.25-$4.35. That amounts to growth of 3%-5% over last year. Not amazing, but well above the inflation rate and certainly not shabby for a conservative health care REIT.
At the property level, the results were also broadly good. Same store net operating income (NOI) rose 3.2% year over year, and for the full year HCN’s management expects same-store NOI growth of 3.0%-3.5%. All told, a very solid quarter. So, is HCN stock a buy at current prices? Let’s take a look. Unlike most of its REIT peers, which tend to invest exclusively in the United States, Health Care REIT is also modestly diversified. It gets 84.8% of its net operating income from the U.S., but 8.4% and 6.8% from the UK and Canada, respectively. HCN is not the highest yielding REIT, but it sports a respectable dividend yield of 4.9% and has been a steady dividend grower for years. Over the past five years, HCN has grown its dividend at a 3.4% clip. Had you bought HCN five years ago, you’d be enjoying a yield on cost of 5.5% today.
Source: InvestorPlace
Related Articles:
- 5 Best U.S. Dividend Growth Stocks
- 5 Low P/E Value-Stocks, Yielding 2% Or Higher
- How Much Money Will You Need To Retire?
- Seeding A Forest Of Dividend Growth Stocks
- 7 Stocks With A Strong Cash To Dividend Coverage
Health Care REIT: Slow and Steady Wins the Race
Posted by D4L | Friday, August 28, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A select group of monthly dividend stocks pays dividends at a rate of 10% or higher. Those are the ones on this list. Investors should be aw...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
While there’s nothing quite as exciting as betting everything on a hot growth enterprise, prudent investors may want to consider the best di...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.