Ventas Inc's Dividend Analysis
Exploring the Dividend Profile of Ventas Inc
Ventas Inc (NYSE:VTR) recently announced a dividend of $0.45 per share, payable on 2024-04-18, with the ex-dividend date set for 2024-03-28. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Ventas Inc's dividend performance and assess its sustainability.
What Does Ventas Inc Do?
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Ventas owns a diversified healthcare portfolio of nearly 1,400 in-place properties spread across the senior housing, medical office, hospital, life science, and skilled nursing/post-acute care. The portfolio includes over 40 properties in Canada and the United Kingdom as the company looks for additional investment opportunities in countries with mature healthcare systems that operate similarly to the United States. The firm also owns mortgages and other loans, contributing about 1% of net operating income.
A Glimpse at Ventas Inc's Dividend History
Ventas Inc has maintained a consistent dividend payment record since 1999. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Ventas Inc's Dividend Yield and Growth
As of today, Ventas Inc currently has a 12-month trailing dividend yield of 4.12% and a 12-month forward dividend yield of 4.12%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Ventas Inc's annual dividend growth rate was -5.60%. Extended to a five-year horizon, this rate decreased to -12.50% per year. And over the past decade, Ventas Inc's annual dividends per share growth rate stands at -5.60%.
Based on Ventas Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Ventas Inc stock as of today is approximately 2.11%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio 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, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Ventas Inc's dividend payout ratio is not applicable (0.00).
Ventas Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Ventas Inc's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Ventas Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Ventas Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Ventas Inc's revenue has increased by approximately 3.20% per year on average, a rate that underperforms approximately 50% of global competitors.
Next Steps for Investors
Considering Ventas Inc's consistent dividend payments, the current dividend yield, and the challenges in dividend growth rate, investors should weigh these factors against the company's payout ratio, profitability, and growth metrics. While the dividend payout ratio is currently not applicable, the profitability rank and fair growth outlook suggest that Ventas Inc is maintaining a balance between rewarding shareholders and investing in future growth. Investors seeking to diversify their portfolios with healthcare real estate exposure may find Ventas Inc an interesting candidate. For those looking to delve deeper, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
