Monthly Dividend Stocks: LTC Properties, Inc. (NYSE:LTC)
By: Ned Piplovic,
LTC Properties, Inc. (NYSE:LTC) — a health care real estate investment trust (REIT) and one of the monthly dividend stocks — continues to reward its shareholders with above average dividend yields and double-digit-percentage returns.
The company’s share price struggled with increased volatility over the past few years. However, the share price’s long-term trend maintains its upward trajectory. Over an extended time horizon that began after the REIT’s largest share price drop in 2000, LTC Properties grew its share price more than 13-fold. Additionally, the REIT nearly tripled its share price since the 2008 financial crisis.
In addition to a long-term share price uptrend, LTC Properties offers investors a steady flow of monthly dividend income payouts, as well as abundant liquidity to manage current obligations and invest into expansion. These characteristics should entice interested income investors to at least take a closer look at LTC Properties and analyze the REITs potential for growth against other monthly dividend stocks.
These investors should research LTC Properties’ recent financial operations and fundamentals to determine whether this stock aligns with their specific investment portfolio goals and strategies. Investors who deem the LTC Properties’ stock worthy of inclusion in their investment portfolio should keep in mind the REITs distribution schedule. The ex-dividend date generally occur around the 20th of each month with the pay date following just a few days later, at the end of the month. The next ex-dividend date should occur on, or around, July 20, 2019, followed by a July 31, pay date.
LTC Properties, Inc. (NYSE:LTC)
Headquartered in Westlake Village, California, and founded in 1992, LTC Properties, Inc. operates as a health care REIT. The company invests in senior housing and long-term health care properties, including skilled nursing properties, assisted living properties and independent living properties through mortgage loans, property lease transactions and other investments. As of June 2019, the company’s portfolio stretched across 28 states and comprised approximately 210 properties, including 104 assisted living properties, 94 skilled nursing properties, seven other senior housing properties, two schools and two facilities currently under development in Georgia and Oregon.
Monthly Dividend Stocks: LTC Properties Share Price
While the share price fluctuated extensively over the last year, the general trend maintained its upward slope and the 50-day moving average maintained its position above its 200-day equivalent. Amid the fluctuations and pressured by the general market correction in late-2018, the share price reached its 52-week low of $40.26 on January 2, 2019. After surging 19% in just over one month, the share price rose to its 52-week high of $47.76 on February 11, 2019.
Since peaking in early February 2019, the share price has pulled back 4.4%. At the end of trading on June 28, the share price settled at $45.66. This closing price was 6.5% higher than one year earlier and 13.4% above the 52-week low from the beginning of January 2019. Additionally, the June 28 closing price was nearly 20% higher than it was five years ago.
Monthly Dividend Stocks: LTC Properties Dividends
LTC Properties has been distributing its current quarterly current $0.19 monthly dividend distribution since late-2016. This monthly dividend payout amount corresponds to a $2.28 annualized amount for 2019. At the current share price level of approximately $45, the REIT’s income distributions yield 5%. This current yield is 4% higher than the REIT’s own 5% five-year yield average. In addition to exceeding its own recent average, the current 5% dividend yield is 63% higher than the Financial sector’s simple average yield of 3.07%. Additionally, LTC Properties’ current yield also outperformed by nearly 30% the 3.86% average yield of the Health Care Facilities REITs industry segment.
While most REITs and other companies in the Financial sector cut their dividend payout in the aftermath of the 2008 financial crisis, LTC Properties managed to merely suspend its rising dividend for one year. In 2009, LTC Properties paid the same $1.56 total annual dividend income distribution as the year before. After resuming its annual dividend hikes in 2010, the REIT boosted its annual dividend payout amount for the subsequent eight years.
Unlike many other monthly dividend stocks that have continued to boost their monthly distributions quarterly, or at least once per year, LTC Properties’ most recent distribution boost occurred in October 2016. However, despite the recent stagnation, a missed hike in 2009 and a temporary dividend suspension in 2001, LTC Properties can still compete with many other monthly dividend stocks on its distribution growth record over the extended time horizon.
Even including the lack of dividend hikes in nearly three years, LTC Properties advanced its annual distribution amount almost 50% and still maintained and average growth rate of nearly 4% per year over the past decade. After suspending dividend distributions in 2001, LTC Properties returned with income payouts the following year. Since restarting dividend distributions in 2002, LTC Properties enhanced the total annual payout amount 470%. This level of advancement corresponds to an average growth rate of almost 11% over the past 17 years.
Because of a significant decline between mid-2016 and early 2018, the share price is still 25% lower than its all-time high from July 2016. Even one of the monthly dividend stocks with steady distributions and above-average yields was unable to overcome such a large share price deficit. Therefore, the combined total return on shareholders’ investment over the last three years is below 3%. However, with the resurging share price, LTC Properties rewarded its shareholders with a 12% total return over the past 12 months. Moreover, even with the share price pullback, the total return over the past five years is nearly 45%.
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