Universal Health Realty Income Trust: A Comprehensive Analysis of Dividend Performance
Unraveling the Dividend History, Yield, and Sustainability of Universal Health Realty Income Trust
Universal Health Realty Income Trust (NYSE:UHT) recently announced a dividend of $0.72 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-18. As investors anticipate this upcoming payment, it's essential to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into Universal Health Realty Income Trust's dividend performance and assess its sustainability.
Understanding Universal Health Realty Income Trust
Warning! GuruFocus has detected 8 Warning Signs with UHT. Click here to check it out.
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Universal Health Realty Income Trust is a healthcare REIT, investing in and leasing healthcare and human service facilities through direct ownership or joint ventures. The company manages a portfolio of these facilities, generating revenue and net income from its investment portfolio located throughout the United States.
Universal Health Realty Income Trust's Dividend History
Universal Health Realty Income Trust has maintained a consistent dividend payment record since 1986, with dividends currently distributed on a quarterly basis. The company has increased its dividend annually since 1986, earning it the status of a dividend aristocrat, a title given to companies that have consistently increased their dividend for at least the past 37 years.
Universal Health Realty Income Trust's Dividend Yield and Growth
As of today, Universal Health Realty Income Trust has a 12-month trailing dividend yield of 6.36% and a 12-month forward dividend yield of 6.40%, suggesting an expectation of increased dividend payments over the next 12 months.
Over the past three years, Universal Health Realty Income Trust's annual dividend growth rate was 1.40%. This rate increased to 1.50% per year when extended to a five-year horizon. Over the past decade, Universal Health Realty Income Trust's annual dividends per share growth rate stands at 1.50%.
Based on Universal Health Realty Income Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Universal Health Realty Income Trust stock as of today is approximately 6.85%.
Payout Ratio and Profitability: Assessing Dividend Sustainability
The dividend payout ratio of Universal Health Realty Income Trust, which stands at 2.15 as of 2023-06-30, provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, ensuring the availability of funds for future growth and unexpected downturns. However, the current ratio may suggest that the company's dividend may not be sustainable.
Universal Health Realty Income Trust's profitability rank of 7 out of 10, suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
The Future Outlook: Growth Metrics
Universal Health Realty Income Trust's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors.
Universal Health Realty Income Trust's revenue has increased by approximately 5.40% per year on average, outperforming approximately 69.87% of global competitors. The company's 3-year EPS growth rate of 3.50% per year on average outperforms approximately 52.06% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 1.80% outperforms approximately 41.58% of global competitors.
Conclusion
Universal Health Realty Income Trust's consistent dividend payment history, impressive yield, and steady growth rate make it an attractive option for dividend-focused investors. However, the sustainability of these dividends may be in question due to the company's high payout ratio. The company's strong profitability and growth metrics suggest that it may continue to deliver value to shareholders. Nonetheless, investors should carefully consider these factors and monitor the company's performance to make informed investment decisions.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
