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What To Know Before Buying Senior Housing Properties Trust (NASDAQ:SNH) For Its Dividend

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. Senior Housing Properties Trust (NASDAQ:SNH) has returned to shareholders over the past 10 years, an average dividend yield of 8.00% annually. Let’s dig deeper into whether Senior Housing Properties Trust should have a place in your portfolio. Check out our latest analysis for Senior Housing Properties Trust

5 checks you should use to assess a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

  • Is their annual yield among the top 25% of dividend payers?

  • Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

  • Has dividend per share amount increased over the past?

  • Is its earnings sufficient to payout dividend at the current rate?

  • Will the company be able to keep paying dividend based on the future earnings growth?

NasdaqGS:SNH Historical Dividend Yield Apr 3rd 18
NasdaqGS:SNH Historical Dividend Yield Apr 3rd 18

How well does Senior Housing Properties Trust fit our criteria?

Although REITs are expected to payout a high portion of the earnings, Senior Housing Properties Trust currently pays out more than double its net income, which suggests that the dividend is not well-covered by earnings by any means. 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. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. SNH has increased its DPS from $1.4 to $1.56 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes SNH a true dividend rockstar. Relative to peers, Senior Housing Properties Trust produces a yield of 10.16%, which is high for REITs stocks.

Next Steps:

Considering the dividend attributes we analyzed above, Senior Housing Properties Trust is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three key aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for SNH’s future growth? Take a look at our free research report of analyst consensus for SNH’s outlook.

  2. Valuation: What is SNH 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 SNH 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.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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