HCP Inc. (
), a health care real estate investment trust, has offered steady
capital gains since the financial crisis. And it's increased its
dividend for 28 straight years.
HCP invests in a broad range of properties, but derives most
of its revenue from senior housing, medical offices and life
science facilities. As a REIT, HCP must pay out at least 90% of
its income to shareholders each year in return for favorable tax
HCP is the only REIT in the S&P 500 Dividend Aristocrats
index, which is comprised of companies that have increased their
annual dividend for at least 25 years.
The Long Beach, Calif.-based company in January raised its
quarterly cash payout to 52.5 cents per share, up 5% from the
previous rate of 50 cents. That brings the annual dividend to
$2.10 a share, good for a yield of about 4% at the current share
price. By contrast, the S&P 500's average dividend yield was
Meanwhile, HCP's stock has more than tripled since bottoming
out during the 2008-09 financial crisis. It's risen 15% this
year, hitting a new high Tuesday and topping the S&P 500's
approximately 10% year-to-date gain. HCP is more than 5% beyond a
47.45 buy point in a saucer-with-handle base .
The company is due to report first-quarter financial results
before the market opens April 30. Analysts expect profit for the
quarter rose 9% from a year earlier to 73 cents a share. Revenue
is expected to have risen 12% to $514.6 million. Both figures, if
realized, would mark the second straight quarter of accelerating
earnings and revenue growth.
The company's outlook could change, however, if the government
cuts Medicare and Medicaid payments as part of efforts to reduce
the nation's debt.