Sabra Health Care REIT, Inc. : SBRA-US: Dividend Analysis : May 18th, 2017 (record date) : By the numbers : May 19, 2017

Our analysis is based on comparing Sabra Health Care REIT, Inc. with the following peers – Ventas, Inc., Chesapeake Lodging Trust, Universal Health Realty Income Trust, Healthcare Trust of America, Inc. Class A, Welltower, Inc., Duke Realty Corporation, Summit Hotel Properties, Inc.,, Tiptree Inc. Class A and HCP, Inc. (VTR-US, CHSP-US, UHT-US, HTA-US, HCN-US, DRE-US, INN-US, TIPT-US and HCP-US).

Sabra Health Care REIT, Inc.’s dividend yield is 7.02 percent and its dividend payout is 116.67 percent. This compares to a peer median dividend yield of 4.13 percent and a payout level of 104.43 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 50 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 Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), SBRA-US paid a high quality dividend, which represents a yield of 6.98% 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 1 was high quality, 1 was medium quality and 3 were low quality.
  • The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to March 31, 2017), SBRA-US paid a high 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 1.56x), investing cash flow (coverage of 1.16x), issuance cash flow (coverage of -1.66x) and twelve-month prior cash (coverage of 0.15x), for a total dividend coverage of 1.18x.

SBRA-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -1.63x) and net share buybacks (coverage of -0.03x). Thus, the total coverage including share buybacks is 1.21x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 6.07 5.74 4.54 8.33 7.48 7.02
Dividend Payout (%) 253.85 200 193.59 144.14 181.52 116.67

A complete list of metrics and analysis is available on the company page.

Company Profile

Sabra Health Care REIT, Inc. operates as a self-administered, self-managed real estate investment trust. Through its subsidiaries it owns and invests in real estate serving the healthcare industry. Its primary business consists of acquiring, financing, and owning real estate property to be leased to third party tenants in the healthcare sector throughout the United States and Canada. The company was founded on May 10, 2010 and is headquartered in Irvine, CA.


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