Why dividends matter
REITs are required to pay 90.0% of their profits to shareholders in the form of share buybacks or dividends. That allows them some additional tax benefits that other companies don’t have.
Welltower’s dividend policy in 2Q17
In 2Q17, Welltower (HCN) announced a quarterly cash dividend of $0.87, payable on August 21, 2017. The dividend is more than the $0.86 it paid the previous year. This dividend hike marks its 185th consecutive quarterly dividend payment. Prior to this dividend increase, Welltower hiked its dividend in January 2016 by 4.2% to $0.86 per share. It offered a dividend yield of 4.9% and 5.1% in 2015 and 2016, respectively. It expects to maintain a dividend yield of 4.9% in 2017.
Healthcare Trust of America’s shareholder return in 2Q17
Healthcare Trust of America (HTA) announced a hike of 1.7% in its quarterly dividend for 2Q17 to 30.5 cents per share The new dividend represents an annualized rate of $1.22 per share. During 2Q17, the company paid a dividend of $0.30 per share. It offered a dividend yield of 4.3% and 4.1% in 2015 and 2016, respectively. It’s expected to offer a dividend yield of 4.0% in fiscal 2017.
Ventas paid higher dividends in 2Q17
Ventas (VTR) paid a dividend of $0.78 per share in 2Q17. That was 6.0% higher than the previous year. It offered a dividend yield of 5.5% and 4.7% in 2015 and 2016, respectively. It’s expected to offer a dividend yield of 4.7% in fiscal 2017.
In the next part, we’ll compare the valuations of our three REITs.