One of the leading healthcare real estate investment trust's
) announced a 3.8% hike in its quarterly cash dividend rate. The
company will now pay a dividend of 54.5 cents per share compared
with 52.5 cents paid in the prior quarter. The increased dividend
will be paid on Feb 25, 2014 to stockholders of record on Feb
Based on this new dividend rate, HCP's total 2014 dividend
will be $2.18 per share. This reflects a 3.8% hike from the 2013
dividend. As a matter of fact, the new dividend rate results in
an annualized yield of 5.6% based on HCP's closing price of
$38.89 on Jan 30.
HCP has established an impressive track record of conservative
capital management and cash returns to shareholders in the form
of steady dividend and has hiked its dividend per share for 29
consecutive years since it became public in 1985.
The company has one of the most diversified, well balanced
portfolios in the healthcare sector with exposure to all types of
facilities. The diverse product mix of the company facilitates it
to explore the opportunities available in various areas, based on
individual market dynamics.
Additionally, the healthcare sector is relatively immune to
the macroeconomic problems faced by office, retail and apartment
companies and offers stability to the company amid the volatility
in the market. Furthermore, the introduction of the Affordable
Act is likely to brighten growth prospects for the company as it
will widen the insured people bracket that will in turn boost the
demand for new outpatient facilities.
As a matter of fact, a number of REIT stocks have increased
their dividend payouts this week. This includes
Apartment Investment & Management Company
), which hiked its quarterly dividend by around 8.3% sequentially
to 26 cents and
AvalonBay Communities, Inc.
) that raised its quarterly dividend by 8.4% sequentially to
$1.16. Moreover, another REIT,
DuPont Fabros Technology, Inc.
) increased its quarterly dividend, this week, by 40%
sequentially to 35 cents per share.
Solid dividend payouts are arguably the biggest attraction for
REIT investors as the U.S. law requires these companies to
distribute 90% of their annual taxable income in the form of
dividends to the shareholders.
HCP is scheduled to release its fourth-quarter 2014 results on
Feb 11. The company's
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at 0.00%. This
along with the Zacks Rank #3 makes surprise prediction
FFO, a widely used metric to gauge the performance of REITs,
is obtained after adding depreciation and amortization and other
non-cash expenses to net income.
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HCP INC (HCP): Free Stock Analysis Report
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