Highest Paying Dividend Stocks – In Focus HCN

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.

Background

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.

Stock Fundamentals

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

Ticker HCN
Industry Real Estate Operations
Price $ 71.33
Market Cap  $ 25,091
Dividend Yield 4.82
Dividend/CFOp 0.879
Equity/Assets 0.497
Average Equity/Assets 0.473
Financial Strength Average
Growth Prospects Below Average
Beta 0.37
Price Volatility Below Average
Stock Fundamentals C

(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016)

If you would like to research on some of the stocks we do consider the best monthly dividend stocks, click the link below.

Top Dividend Paying Stocks and More

To learn why we favor the best dividend paying Stocks, click the following link.

The Benefits of Favoring the Best Monthly Dividend Stocks

Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.

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Highest Paying Dividend Stocks – In Focus HCN

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