Monday, 5 December 2016

54. Cash-or-Trash #5 HCP

Having selected a number of regular paying dividend stocks, today it’s HCP’s turn to undergo a cash-or-trash quick-analysis.

Real estate investment trusts are hot. My opinion. The ones I come across usually have reasonably dividends. Fun fact: “As long as REITs pay out at least 90% of their earnings in the form of dividends, the companies are not required to pay income taxes.” (source: dividend.com). This particular company, being a real estate investment trust, invests PRIMARILY in real estate assigned to healthcare industry in the United States. The quick chart for this share:

Source:
Date
5-12-2016
Ticker
NYSE:HCP
Share price
$29,08
Dividend
$0,37
Yield
5,09


Investment
$1.500,00
Distributions per year
4
Amount of shares
52
Dividends per distribution
$19,24
Dividends per year
$76,96
+
REIT: relatively higher dividends;
Looking at the 52-week range of the share price (between 25.00 and 40.43 USD) the stock is currently quite positively positioned;
Engaged in Healthcare and real estate, two trades that I put trust in (having survived the mortgage horror quite well);
HCP inc. holds a well spread portfolio;
Primary objective for the trust is to increase shareholder value “through profitable growth and dividends”.
Having made some jumps in the past, I’m optimistic on the chances for this share to meet a 35 USD per share.
One reason for the decline of share value in the past few weeks might be the spin off of QCP. During this deal the holders of 5 shares HCP were entitled to 1 share of QCP.
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2016 is going to become the first in 13 years that there is a decrease in total dividends paid. Is this a sign on the wall for changing strategy?
Having explored this a bit further, the company history @ 2016 gives another idea on this than what is given at the dividends page.
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Seeing that there is a few strong points on the plus side of this equation, I’m in favour of taking this shot. Also, counting weights of pros and cons, the plus side wins. By far. That’s it, I’m buying a few, just to start.

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