| Community Healthcare Trust (NYSE: CHCT) has a remarkable dividend-raising track record. The company has boosted its dividend every quarter since it began paying one in 2015. The payout has been raised for 41 consecutive quarters. The increases aren't large - a quarter of a penny each time. While they have contributed to the current 13% annual yield, the big reason the stock has such a high yield is that the share price has fallen by two-thirds over the past three years. Community Healthcare Trust owns 200 properties in 36 states that are leased to doctors, hospitals, and other healthcare organizations. This is a small cap company that generates a little over $100 million in revenue per year. Despite the weak stock price, the company is profitable and cash flow positive. Let's see whether its cash flow is enough to sustain further quarterly raises. Because Community Healthcare Trust is a real estate investment trust, we use a measure of cash flow called funds from operations, or FFO. Last year, FFO climbed 7% to $51.2 million. This year, it is forecast to slip slightly to $50.9 million. That projected slight reduction in FFO is enough to earn Community Healthcare a penalty on its Safety Net rating. Negative cash flow growth is a big red flag. |
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