If you are interested in cashing in on LTC Properties Inc’s (NYSE:LTC) upcoming dividend of $0.19 per share, you only have 3 days left to buy the shares before its ex-dividend date, 22 May 2018, in time for dividends payable on the 31 May 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine LTC Properties’s latest financial data to analyse its dividend characteristics. Check out our latest analysis for LTC Properties
5 questions I ask before picking a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
- Does it pay an annual yield higher than 75% of dividend payers?
- Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
- Has the amount of dividend per share grown over the past?
- Does earnings amply cover its dividend payments?
- Will it be able to continue to payout at the current rate in the future?
Does LTC Properties pass our checks?REITs are a special-case dividend payer. This is because a high percentage of their earnings are required to be paid out as dividends. LTC Properties has a trailing twelve-month payout ratio of 104.74%, meaning that a portion of dividend payments are funded by retained earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of LTC it has increased its DPS from $1.56 to $2.28 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock. Relative to peers, LTC Properties generates a yield of 5.84%, which is high for REITs stocks.
With this in mind, I definitely rank LTC Properties as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. There are three essential aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for LTC’s future growth? Take a look at our free research report of analyst consensus for LTC’s outlook.
- Valuation: What is LTC worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether LTC is currently mispriced by the market.
- Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.