) announced a 5% hike in its quarterly cash dividend rate. The
company will now pay a dividend of 52.5 cents per share compared
with 50 cents paid in the prior quarter. The increased dividend
will be paid on Feb 19, 2013 to stockholders of record on Feb 4.
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 28
consecutive years since it became public in 1985.
HCP is the leading medical real estate investment trust (REIT) in
the U.S. with one of the largest and most diversified portfolios
in the healthcare sector with exposure to all types of
facilities. The product diversity of the company allows it to
capitalize on opportunities in different markets based on
individual market dynamics and provides a hard-to-replicate
competitive advantage over its peers.
Additionally, the healthcare sector provides a steady source of
income that insulates the company from short-term market
volatility. With strong quarterly results, the company is well
poised to maintain its growth curves and simultaneously benefit
the shareholders with steadily rising dividends.
As a matter of fact, a number of REIT firms have increased their
dividend payouts in recent months. This includes
Vornado Realty Trust
), which hiked its quarterly dividend by 5.8% to 73 cents and
) that raised its quarterly dividend by about 12.5% to 13.5 cents
this month. Moreover, in December, lodging REIT,
RLJ Lodging Trust
), increased its quarterly dividend by 24.2% to 20.5 cents per
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.
The company is scheduled to release its fourth-quarter 2012
results on Feb 12. The Zacks Consensus Estimate for the company's
fourth-quarter FFO (funds from operations) is currently pegged at
71 cents per share.
HCP Inc. currently carries a Zacks Rank #3 (Hold) and considering
its fundamentals, we have a long-term Neutral recommendation on
DDR CORP (DDR): Free Stock Analysis Report
HCP INC (HCP): Free Stock Analysis Report
RLJ LODGING TR (RLJ): Free Stock Analysis
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