Welltower Incorporated (HCN) is one of the highest paying dividend stocks we cover (dividend yield = 4.82). However, we do not consider it one of the best dividend paying stocks we cover. We will explain why in this report.
Welltower is a real estate investment trust (REIT) specializing in health care related real estate. Some of the types of real estate it invests in include seniors housing communities, nursing/post-acute facilities, medical office buildings, and inpatient and outpatient medical facilities.
The company operates in three segments: seniors housing triple-net, seniors housing operating, and medical facilities. The company’s hospitals and seniors housing triple-net are leased to operators under long-term operating leases. Its medical office buildings are primarily self-managed.
HCN was previously known as Health Care REIT, and it is headquartered in Toledo, Ohio.
HCN specializes in healthcare related assets and this shows in its stock price. Both its price volatility and beta are very low. Also, its sales have been strong and steady. Furthermore, HCN grades out well on many of the other measures of efficiency we look at.
On the negative side, HCN is richly priced. In terms of its profits, sales, cash flows, and free cash flows HCN is selling at a premium to most stocks.
This is the normal state of affairs. The market recognizes well-run companies and prices them accordingly. On occasion, the market overlooks an exceptional company and assigns it only a modest price or a price befitting of an average company. It is these companies that earn our highest rating for their fundamentals.
Unfortunately, HCN does not fit this description. HCN is a very good company selling at a very good price. It does not provide any real bargain. We like this company, but we do not necessarily like the stock. We do not consider HCN one of our best dividend paying stocks.
Stat Sheet – Welltower Incorporated 4/19/16
|Industry||Real Estate Operations|
|Market Cap||$ 25,091|
|Growth Prospects||Below Average|
|Price Volatility||Below Average|
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016)
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