Assessing the Sustainability of American Healthcare REIT Inc's Dividend
American Healthcare REIT Inc (AHTR, Financial) recently announced a dividend of $0.25 per share, payable on 2024-01-16, with the ex-dividend date set for 2023-12-26. 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 American Healthcare REIT Inc's dividend performance and assess its sustainability.
What Does American Healthcare REIT Inc Do?
American Healthcare REIT Inc is a healthcare-focused real estate investment trust. It owns a diversified portfolio of clinical healthcare real estate properties, focusing primarily on medical office buildings, skilled nursing facilities, senior housing, hospitals, and other healthcare-related facilities.
A Glimpse at American Healthcare REIT Inc's Dividend History
American Healthcare REIT Inc has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a quarterly basis.
Despite the recent initiation of dividend payments, American Healthcare REIT Inc is committed to rewarding its shareholders. The stock aims to establish itself as a dividend contender in the future. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down American Healthcare REIT Inc's Dividend Yield and Growth
As of today, American Healthcare REIT Inc currently has a 12-month trailing dividend yield of 5.17% and a 12-month forward dividend yield of 6.90%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on American Healthcare REIT Inc's dividend yield and five-year growth rate, the 5-year yield on cost of American Healthcare REIT Inc stock as of today is approximately 5.17%.
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 2023-09-30, American Healthcare REIT Inc's dividend payout ratio is not applicable, indicating insufficient data for calculation.
American Healthcare REIT Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks American Healthcare REIT Inc's profitability 2 out of 10 as of 2023-09-30, suggesting the dividend may face challenges to sustainability given the company's limited profitability history.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. American Healthcare REIT Inc's growth rank of 2 out of 10 suggests that the company has poor growth prospects and thus, the dividend may face sustainability challenges. Investors should monitor the company's ability to improve its growth metrics to better secure its dividend in the future.
Next Steps
In conclusion, while American Healthcare REIT Inc's dividend yield is attractive, the company's growth and profitability ranks indicate potential risks to the sustainability of its dividend payments. Investors should consider these factors alongside the company's future strategic initiatives and industry trends before making investment decisions. For those seeking additional high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener to find other promising stocks.
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.
