Our analysis is based on comparing National HealthCare Corp. with the following peers – Capital Senior Living Corporation, Genesis Healthcare Inc Class A, Ensign Group, Inc., Five Star Senior Living Inc, Kindred Healthcare, Inc., AdCare Health Systems, Inc. and Diversicare Healthcare Services, Inc. (CSU-US, GEN-US, ENSG-US, FVE-US, KND-US, ADK-US and DVCR-US).
National HealthCare Corp.’s dividend yield is 2.53 percent and its dividend payout is 52.71 percent. This compares to a peer median dividend yield of 2.17 percent and a payout level of -0 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 58 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.
Dividend Quality Overview
- Over the last twelve months (prior to December 31, 2016), NHC-US paid a low quality dividend, which represents a yield of 2.46% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were high quality, 1 was medium quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 7.38x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to December 31, 2016), NHC-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 3.52x), investing cash flow (coverage of -3.16x), issuance cash flow (coverage of -0.05x) and twelve-month prior cash (coverage of 7.03x), for a total dividend coverage of 8.38x.
NHC-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.13x).
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||4.63||2.3||2.11||2.28||2.24||2.53|
|Dividend Payout (%)||63.04||32.56||42.68||48.13||52.71||52.71|
A complete list of metrics and analysis is available on the company page.
National HealthCare Corp. engages in the operation of health care centers. It provides sub and post-acute nursing care, intermediate nursing care, rehabilitative care, senior living services and home health care services. The company also offers management services, accounting and financial services and insurance services to third party owners of health care facilities. National HealthCare was founded by Carl E. Adams in 1971 and is headquartered in Murfreesboro, TN.
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