11 Healthcare Facilities Stocks with High Dividend Yields

By | October 18, 2010

In this article, I will list 11 Healthcare Facilities stocks with the highest dividend yields. Healthcare Facilities is a good sector to look for income stocks, especially for the long term. They have a long history of paying out dividends.  In addition to the dividend yield, I will also looked at Dividend Consistency, which is a metric I use to check how reliable the dividend income are historically.

A consistent dividend payout indicates that the company has a strong balance and can pay out the dividends regardless of the market conditions. Dividend Consistency means that the company has pay a dividend every quarter since the first dividend issued and that the dividends in subsequent quarters are equal to or greater than the previous quarters.

The dividends payout are graphed to illustrate the payouts from the time of dividend inception to present. For the companies with dividend consistency, the average dividend percentage growth is calculated over the past ten years, using this formula:

Average Annual Dividend Growth (%) = (First Quarter Dividend in 2010 – First Quarter Dividend in 2000) ÷ (First Quarter Dividend in 2000) ÷ (10 years)

Hospitality Properties Trust (HPT)
Price: $22.75
Dividend: $1.8
Dividend Yield: 7.91%
Payout Ratio: 99%
Dividend Consistency: No

Medical Properties Trust, Inc. (MPW)
Price: $10.76
Dividend: $0.8
Dividend Yield: 7.43%
Payout Ratio: 333%
Dividend Consistency: No

Cogdell Spencer Inc. (CSA)
Price: $6.61
Dividend: $0.4
Dividend Yield: 6.05%
Payout Ratio: 286%
Dividend Consistency: No

Health Care REIT, Inc. (HCN)
Price: $49.46
Dividend: $2.76
Dividend Yield: 5.58%
Payout Ratio: 275%
Dividend Consistency: No

National Health Investors Inc (NHI)
Price: $45.86
2.76: $2.42
Dividend Yield: 5.28%
Payout Ratio: 73%
Dividend Consistency: No

Healthcare Realty Trust Incorporated (HR)
Price: $23.83
Dividend: $1.2
Dividend Yield: 5.04%
Payout Ratio: 334%
Dividend Consistency: No

Psychemedics Corp. (PMD)
Price: $9.72
Dividend: $0.48
Dividend Yield: 4.94%
Payout Ratio: 69%
Dividend Consistency: No

Universal Health Realty Income Trust (UHT)
Price: $35.54
Dividend: $2.42
Dividend Yield: 6.81%
Payout Ratio: 162%
Dividend Consistency: Yes
Average Annual Dividend Growth: 3.19%

Senior Housing Properties Trust (SNH)
Price: $23.89
Dividend: $1.48
Dividend Yield: 6.20%
Payout Ratio: 178%
Dividend Consistency: Yes
Average Annual Dividend Growth: 2.00%

HCP, Inc. (HCP)
Price: $36.29
Dividend: $1.86
Dividend Yield: 5.13%
Payout Ratio: 430%
Dividend Consistency: Yes
Average Annual Dividend Growth: 2.92%

Birner Dental Mgmt. Services (BDMS)
Price: $17
Dividend: $0.8
Dividend Yield: 4.71%
Payout Ratio: 95%
Dividend Consistency: Yes
Average Annual Dividend Growth: 72.22% (company only has 6 years of dividend data)

HCN almost has a consistent dividend history, except for the one dip on Jan 29, 2007. Only four Healthcare Facilities stocks showed complete Dividend Consistency: UHT, SNH, HCP and BDMS. Of these stocks, UHT has the highest Dividend Yield at 6.81% and BDMS has the highest Average Annual Dividend Growth at 72.22%, based on the 6 years of dividends issued and the lowest Payout Ratio at 95%.

Through recessions and market downturns, UHT, SNH, HCP and BDMS have been consistently paying their dividends. These stocks are highly recommended for anyone looking for long term income investments.

Data Source: Yahoo Finance
All Stock Prices are as of the closed of 10/15/2010. Dividend Yields are listed for the current year, Forward Annual Dividend Yields.

Disclaimer: The author owns shares of UHT as of the article’s published date.

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