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
Dividend Growth Stocks News
- 3 Middle Eastern Dividend Stocks Yielding Up To 7.1% - Yahoo Finance - 5/15/2025
- 3 Global Dividend Stocks With Up To 4.2% Yield - Yahoo Finance - 5/15/2025
- James Halstead And 2 Other Leading UK Dividend Stocks - Yahoo Finance - 5/5/2025
- 3 Magnificent S&P 500 Dividend Stocks Down 62%, 63%, and 64% to Buy and Hold Forever - MSN - 5/16/2025
- 3 Reliable Dividend Stocks Offering Up To 3.5% Yield - Yahoo Finance - 5/16/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
Health Care REIT: Slow and Steady Wins the Race
Posted by D4L | Friday, August 28, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.