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 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.
Quadrant label definitions. Hover to know more
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.
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 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.
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.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.