LTC Properties (LTC) is definitely one of the highest paying dividend stocks we cover (dividend yield = 4.59). The purpose of this report is to determine if it is also one of the best dividend paying stocks we cover.
Background
LTC Properties (LTC) is a health care real estate investment trust (REIT) specializing in senior housing and health care properties. The types of properties LTC invests in include skilled nursing properties (SNF), assisted living properties (ALF), independent living properties (ILF), and memory care properties (MC).
LTC is headquartered in Westlake Village, California. As of the April 2016, LTC owned 224 properties in 29 states, mostly in the southern and western regions of the U.S. Just some of the company’s subsidiaries include Albuquerque Real Estate Investments, Beaumont Real Estate Investments, Broadway Real Estate Investments, Bakersfield LTC, BV Holding LTC, and Coronado Corporation.
Stock Fundamentals
LTC’s sales growth over the last business cycle (seven – eight years) has been modest. However, this modest growth is still high compared to most of the other REITS we follow. And given the nature of its business, it should not be surprising that LTC’s sales growth has been steady as well.
LTC’s dividend appears solid, and it has been consistently profit and cash flow positive. LTC grades out well on many of the other metrics we look at as well.
Unfortunately, all these admirable features seemed to be priced in. All of the firm’s price multiples are on the high side. LTC is clearly selling at a premium.
We like this company very much. We do not like it enough to rate its fundamentals above average. However, if it continues to perform well and/or its stock price falls without a corresponding deterioration in its fundamentals, we will not hesitate to upgrade it. We do not consider it one of our best dividend paying stocks, but it is close.
Stat Sheet – LTC Properties 4/19/16
| Ticker | LTC |
| Industry | Real Estate Operations |
| Price | $ 47.03 |
| Market Cap | $ 1,662 |
| Dividend Yield | 4.59 |
| Dividend/CFOp | 0.786 |
| Equity/Assets | 0.512 |
| Average Equity/Assets | 0.579 |
| Financial Strength | Average |
| Growth Prospects | Below Average |
| Beta | 0.49 |
| 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.
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vershire 