Wednesday, August 16, 2023

How Healthy Is This 5.9% Yield?

Shield

AN OXFORD CLUB PUBLICATION

Wealthy Retirement

View in browser

SPONSORED

A Former Goldman Sachs VP Issues a Grave Warning

He says, "Investors must move money NOW before a major event-that's followed EVERY volatile market for 50 years-shakes stocks." See what's coming here.

How Healthy Is This 5.9% Yield?

Marc Lichtenfeld, Chief Income Strategist, The Oxford Club

Marc Lichtenfeld

Healthpeak Properties (NYSE: PEAK) is a healthcare real estate investment trust (REIT) with over $20 billion worth of real estate. Properties include an outpatient facility in Poway, California; Lone Peak Hospital in Salt Lake City; and a medical park in Pensacola, Florida.

The company has been publicly traded for 38 years.

Healthpeak Properties yields 5.9%. But can investors rely on the $0.30 per share quarterly dividend?

Let's find out...

Since Healthpeak Properties is a REIT, we use funds from operations (FFO) to determine whether the company can fund its dividend.

After a drop from $700 million to $611 million in 2021, FFO jumped last year and is forecast to grow again in 2023.

Last year, Healthpeak Properties generated $905 million in FFO while paying out $648 million in dividends for a payout ratio of 72%. I'm comfortable with REITs paying out as much as 100% of their FFO since, by law, they must pay shareholders 90% or more of their earnings.

Keep in mind, earnings are different from FFO, but because REITs pay out such a high percentage of their earnings, they also tend to pay out most of their FFO in dividends.

SPONSORED

WATCH NOW: Multimillionaire Trader Wows Thousands With "One Ticker Payouts" Demonstration

One Ticker Payout
 

Research found that smart investors could have made top gains of...

  • 443% in 11 days
  • 89% in 11 days
  • 543% in nine days
  • 88% in seven days.

All by trading just one ticker every week!

Sound preposterous?

[SEE THE PROOF HERE]

This year, Healthpeak Properties' FFO is forecast to be $957 million while dividends paid is expected to increase slightly to $657 million for a payout ratio of 69%.

So the company can easily afford its dividend.

That said, here's the problem...

Healthpeak Properties has cut its dividend several times in the recent past. Today, the dividend is nearly half of what it was in 2015.

Chart: Healthpeak Properties Dividend History
 

Cutting a dividend will automatically result in a downgrade. Once management is comfortable taking away the punch bowl from investors (or at least diluting it), it will be apt to do it again when times get tough.

At this moment, Healthpeak Properties can afford its dividend. Should things get difficult, investors shouldn't be at all surprised if management slashes the dividend again.

CLICK TO REVEAL RATING
Investment U Conference 2024 at the Ojai Valley Inn & Spa in Ojai, California. Don't miss out!

Stock Forecasting Champion Says One $10 AI Stock Could Deliver Windfall Profits. Details Here.

One Potentially Explosive Stock That Alexander Green Just Discovered Has Seen Five-Year 2,000% Revenue Growth, Enjoys 70% Gross Margins and Sports a Debt-Free Balance Sheet, yet Still Trades Under $10. He's Calling It the "Next Great American Super Stock." (Click for Details.)

SPONSORED

Yours Free! Top FIVE Dividend Stocks Right Now

Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Ultimate Dividend Package... completely free of charge!

You'll discover...

  • An "A"-rated, ultra-safe dividend stock with a huge 8% yield
  • Three of Marc's favorite "Extreme Dividend" stocks, which could supercharge your income
  • And finally, Marc's No. 1 dividend stock for a LIFETIME of income.

Click here to get the names and ticker symbols now... before the download link expires.

**NO CREDIT CARD REQUIRED!**

No comments:

Post a Comment

Revealing the Largest Position in My Personal IRA

Wealthy Retirement ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌...