A Comprehensive Analysis of AHTR's Dividend History, Yield, Growth, and Sustainability
American Healthcare REIT Inc (AHTR, Financial) recently announced a dividend of $0.25 per share, payable on October 16, 2023. The ex-dividend date is set for September 29, 2023. As investors eagerly anticipate this upcoming payment, it's imperative to examine the company's dividend history, yield, and growth rates. Leveraging data from GuruFocus, we delve into American Healthcare REIT Inc's dividend performance and assess its sustainability.
Understanding American Healthcare REIT Inc's Business Model
American Healthcare REIT Inc is a healthcare-centric real estate investment trust (REIT). It possesses a diversified portfolio of clinical healthcare real estate properties, with a primary focus on medical office buildings, skilled nursing facilities, senior housing, hospitals, and other healthcare-related facilities.
A Look at American Healthcare REIT Inc's Dividend History
Since 2023, American Healthcare REIT Inc has maintained a consistent dividend payment record, distributing dividends on a quarterly basis. The company has increased its dividend each year since -, earning it the prestigious title of a dividend king. This accolade is reserved for companies that have consistently increased their dividend each year for at least the past 2023 years.
Below is a chart illustrating the annual Dividends Per Share for tracking historical trends.
Dissecting American Healthcare REIT Inc's Dividend Yield and Growth
As of today, American Healthcare REIT Inc boasts a 12-month trailing dividend yield of 3.57% and a 12-month forward dividend yield of 7.14%. This indicates an expected increase in dividend payments over the next 12 months. Based on these metrics and the company's five-year growth rate, the 5-year yield on cost of American Healthcare REIT Inc stock is approximately 3.57% today.
Evaluating Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a dividend is often gauged by examining the company's payout ratio. The dividend payout ratio reveals the proportion of earnings the company distributes as dividends. A lower ratio indicates that the company retains a substantial portion of its earnings, thereby ensuring funds for future growth and unforeseen downturns. As of June 30, 2023, American Healthcare REIT Inc's dividend payout ratio is 0.00.
The profitability rank of American Healthcare REIT Inc provides insights into the company's earnings power relative to its peers. With a profitability rank of 3 out of 10 as of June 30, 2023, the sustainability of the dividend is questionable. The company has reported net profit in 1 year out of the past 10 years.
Growth Metrics: A Peek into the Future
For dividends to be sustainable, a company must exhibit robust growth metrics. American Healthcare REIT Inc's growth rank of 3 out of 10 suggests that the company has poor growth prospects, thereby casting doubts on the sustainability of its dividends.
Conclusion
While American Healthcare REIT Inc has a commendable track record of consistent dividend payments, its current payout ratio, profitability rank, and growth rank raise concerns about the sustainability of its dividends. Investors should closely monitor these metrics and the company's future performance. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
