Assessing the Sustainability of Healthpeak Properties Inc's Dividend
Healthpeak Properties Inc(PEAK, Financial) recently announced a dividend of $0.3 per share, payable on 2024-02-26, with the ex-dividend date set for 2024-02-13. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Healthpeak Properties Inc's dividend performance and assess its sustainability.
What Does Healthpeak Properties Inc Do?
Healthpeak Properties Inc operates within the healthcare sector, managing a diversified portfolio that includes medical office buildings, life science properties, senior housing, hospitals, and skilled nursing/post-acute care facilities. The company's extensive property count stands at approximately 457 in-place properties, signifying a broad presence in the healthcare real estate industry.
A Glimpse at Healthpeak Properties Inc's Dividend History
Healthpeak Properties Inc has a longstanding tradition of delivering dividends to its shareholders, with a track record dating back to 1985. The company's commitment to providing quarterly dividend payments showcases its dedication to returning value to its investors.
Below is a chart showing the annual Dividends Per Share for tracking historical trends.
Breaking Down Healthpeak Properties Inc's Dividend Yield and Growth
Healthpeak Properties Inc boasts a trailing dividend yield of 6.92% over the past 12 months and a forward dividend yield of 6.92%, indicating a stable dividend outlook for the near future. However, the dividend growth rates tell a different story, with a three-year annual dividend growth rate of -6.80%, a five-year rate of -4.70% per annum, and a ten-year growth rate of -6.30%.
When considering the 5-year yield on cost, Healthpeak Properties Inc stockholders can anticipate a return of approximately 5.46%, based on the current dividend yield and five-year growth rate.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a crucial indicator of dividend sustainability. Healthpeak Properties Inc's ratio of 4.01 as of 2023-12-31 may raise concerns about the long-term viability of its dividend payments. A lower payout ratio typically suggests a company has ample earnings to support dividend growth and cushion against economic downturns.
Healthpeak Properties Inc's profitability rank is another vital factor to consider. With a rank of 7 out of 10, the company's profitability appears robust, having reported net profits in 9 out of the past 10 years, which is a positive sign for dividend sustainability.
Growth Metrics: The Future Outlook
The future sustainability of dividends is closely tied to a company's growth prospects. Healthpeak Properties Inc's growth rank of 7 out of 10 reflects a strong position relative to its competitors. The company's revenue per share and 3-year revenue growth rate, at an impressive 14.70% annually, outperform 88.92% of global competitors, indicating a robust revenue model.
Healthpeak Properties Inc's earnings have also seen a significant uptick, with a 3-year EPS growth rate of 27.50% per year on average, outperforming 82.86% of global competitors. However, the 5-year EBITDA growth rate of -2.70% suggests there may be challenges ahead, as it outperforms just 37.92% of global competitors.
Concluding Thoughts on Healthpeak Properties Inc's Dividend
In conclusion, while Healthpeak Properties Inc's dividend history and current yield are appealing, the negative growth rates and payout ratio present a mixed picture regarding the dividend's future sustainability. The company's solid profitability and revenue growth provide some reassurance, but investors should also consider the potential impact of the declining EBITDA growth rate. As value investors look to make informed decisions, it will be important to monitor Healthpeak Properties Inc's financial health and industry trends closely. Will Healthpeak Properties Inc manage to sustain its dividend payments in the face of these challenges? Only time will tell.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
