Welltower Inc's Dividend Analysis

Welltower Inc's Dividend Analysis

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An In-depth Look at Welltower Inc's Upcoming Dividend and Its Historical Performance

Welltower Inc (NYSE:WELL) recently announced a dividend of $0.61 per share, payable on 2024-03-07, with the ex-dividend date set for 2024-02-22. 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 Welltower Inc's dividend performance and assess its sustainability.

What Does Welltower Inc Do?

Welltower owns a diversified healthcare portfolio of over 2,000 in-place properties spread across the senior housing, medical office, and skilled nursing/post-acute care sectors. The portfolio includes over 100 properties in both Canada and the United Kingdom as the company looks for additional investment opportunities in countries with mature healthcare systems that operate similarly to that of the United States.

Welltower Inc's Dividend Analysis
Welltower Inc's Dividend Analysis

A Glimpse at Welltower Inc's Dividend History

Welltower Inc has maintained a consistent dividend payment record since 1985. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Welltower Inc's Dividend Analysis
Welltower Inc's Dividend Analysis

Breaking Down Welltower Inc's Dividend Yield and Growth

As of today, Welltower Inc currently has a 12-month trailing dividend yield of 2.64% and a 12-month forward dividend yield of 2.64%. This suggests an expectation of same dividend payments over the next 12 months.

Over the past three years, Welltower Inc's annual dividend growth rate was -3.30%. Extended to a five-year horizon, this rate decreased to -8.10% per year. And over the past decade, Welltower Inc's annual dividends per share growth rate stands at -3.20%.

Based on Welltower Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Welltower Inc stock as of today is approximately 1.73%.

Welltower Inc's Dividend Analysis
Welltower Inc's Dividend Analysis

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, Welltower Inc's dividend payout ratio is 3.26, which may suggest that the company's dividend may not be sustainable.