Assessing the Dividend Performance of Healthcare Realty Trust Inc
Healthcare Realty Trust Inc (HR, Financial) recently announced a dividend of $0.31 per share, payable on 2024-03-14, with the ex-dividend date set for 2024-02-23. 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 Healthcare Realty Trust Inc's dividend performance and assess its sustainability.
What Does Healthcare Realty Trust Inc Do?
Healthcare Realty Trust Inc is a healthcare facility real estate investment trust. The company focuses on owning, leasing, and managing outpatient facilities and other healthcare properties. The company considers merger and acquisition investment as a component of its operational growth strategy. It works with developers that have strong ties to a local health system and physicians. The company works to invest in outpatient facilities that are integral to a hospital's operations. It generates all of its revenue in the United States.
A Glimpse at Healthcare Realty Trust Inc's Dividend History
Healthcare Realty Trust Inc has maintained a consistent dividend payment record since 1993, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since 2010, earning it the title of a dividend achiever, a distinction awarded to companies that have raised their dividends annually for at least the past 14 years. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Healthcare Realty Trust Inc's Dividend Yield and Growth
As of today, Healthcare Realty Trust Inc currently has a 12-month trailing dividend yield of 9.08% and a 12-month forward dividend yield of 9.08%, suggesting an expectation of the same dividend payments over the next 12 months.
Over the past three years, Healthcare Realty Trust Inc's annual dividend growth rate was 1.10%. Extended to a five-year horizon, this rate decreased to 0.80% per year. And over the past decade, Healthcare Realty Trust Inc's annual dividends per share growth rate stands at 0.30%.
Based on Healthcare Realty Trust Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Healthcare Realty Trust Inc stock as of today is approximately 9.45%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Healthcare Realty Trust Inc's dividend payout ratio is 0.00.
Healthcare Realty Trust Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Healthcare Realty Trust Inc's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Healthcare Realty Trust Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Healthcare Realty Trust Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Healthcare Realty Trust Inc's revenue has increased by approximately -1.70% per year on average, a rate that underperforms than approximately 67.23% of global competitors.
Concluding Insights on Healthcare Realty Trust Inc's Dividend Profile
Healthcare Realty Trust Inc's dividend payments, growth rate, payout ratio, profitability, and growth metrics paint a comprehensive picture for value investors. While the dividend yield remains attractive, the relatively low growth rates over the past decade may prompt investors to consider the company's future prospects in the dynamic healthcare sector. The sustainability of the dividend, supported by a non-existent payout ratio and a fair profitability rank, suggests that the company manages its earnings prudently. However, investors should weigh these factors against the backdrop of Healthcare Realty Trust Inc's revenue growth, which lags behind a significant portion of its peers. For those seeking income-generating investments, Healthcare Realty Trust Inc presents an interesting case study in balancing yield with growth potential.
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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.
