Dividend Stocks

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>>> Ventas (VTR)



https://www.thestreet.com/story/13646215/6/10-best-dividend-stocks-to-own-now-for-a-safe-retirement.html


Ventas is the nation's second largest publically own healthcare focused REIT. The company invests predominately through 768 Senior Housing Communities (70%). Next in order are 361 Medical Office Buildings (18%) followed by 46 Specialty Hospitals (4.4%), 53 Skilled Nursing Facilities (2.2%) and 12 General Acute Hospitals (1.8%) The balance (2.6%) is from loans and related investments. The company's investment properties are spread throughout the United States, Canada and the United Kingdom.

The company is not a healthcare operator. Rather it invests in healthcare properties that are leased to operators such as Brookdale Senior Living, Sunrise and others. These operators offer high quality private pay facilities that are not subject to Medicare or similar reimbursement dependency.

The demand for senior healthcare is underscored by the inflow of 10,000 people daily turning 65. Only a fraction of those 65+ are able to afford to pay for this care. Ventas management maintains that even a 1% increase in senior living share of this demographic group would require a doubling in the current number of senior housing units.

In general the business of investing in healthcare facilities is limited by capital availability. Unlike healthcare operators like Brookdale and Sunrise, investors in senior living need only be certain their investment properties conform to various state and local codes. However, on other activities such as skilled nursing and specialty hospitals, Federal, state and local authorities directly regulate the company. Available return on investment depends of property prices, interest rates, occupancy and the cost of maintenance or upgrading facilities.

Current investors are offered a yield of 4.1%. The payout has grown annually by 10% over the past 10 years and 7.3% over the past five. Last year alone, the dividend was increased 12%. The pace of turnover of Ventas existing portfolio will affect future payouts. Some $18 billion in property assets are held at cost less depreciation. This is well below current market for many of these assets.

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