Only 9 Days Left Before LTC Properties Inc (NYSE:LTC) Will Start Trading Ex-Dividend, Should Investors Buy?

Important news for shareholders and potential investors in LTC Properties Inc (NYSE:LTC): The dividend payment of $0.19 per share will be distributed into shareholder on 29 June 2018, and the stock will begin trading ex-dividend at an earlier date, 20 June 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

Here’s how I find good dividend stocks

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

  • Is it the top 25% annual dividend yield payer?
  • Has it paid dividend every year without dramatically reducing payout in the past?
  • Has dividend per share risen in the past couple of years?
  • Does earnings amply cover its dividend payments?
  • Will the company be able to keep paying dividend based on the future earnings growth?

NYSE:LTC Historical Dividend Yield June 10th 18
NYSE:LTC Historical Dividend Yield June 10th 18

How does LTC Properties fare?

REITs are a special-case dividend payer. This is because a high percentage of their earnings are required to be paid out as dividends. The current trailing twelve-month payout ratio for LTC is 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 is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. 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. Compared to its peers, LTC Properties produces a yield of 5.48%, which is high for REITs stocks.

Next Steps:

Considering the dividend attributes we analyzed above, LTC Properties is definitely worth keeping an eye on for someone looking to build a dedicated income 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. I’ve put together three essential aspects you should further examine:

  1. 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.
  2. 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.
  3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.