Our analysis is based on comparing Tiptree, Inc. with the following peers – Universal Health Realty Income Trust, HCP, Inc., Ventas, Inc., Ashford Hospitality Trust, Inc., Welltower, Inc., Duke Realty Corporation, Sabra Health Care REIT, Inc., Gyrodyne LLC, CIM Commercial Trust Corporation and Healthcare Trust of America, Inc. Class A (UHT-US, HCP-US, VTR-US, AHT-US, HCN-US, DRE-US, SBRA-US, GYRO-US, CMCT-US and HTA-US).
Tiptree, Inc.’s dividend yield is 1.92 percent and its dividend payout is 39.64 percent. This compares to a peer average dividend yield of 4.65 percent and a payout level of 98.66 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 58 out of a possible score of 100 is only about average.
Dividend Quality Overview
- Over the last twelve months (prior to June 30, 2017), TIPT-US paid a medium quality dividend, which represents a yield of 1.83% 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 3 were medium quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 54.45x, 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 June 30, 2017), TIPT-US paid a medium 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 -9.17x), investing cash flow (coverage of -0.14x), issuance cash flow (coverage of 24.23x) and twelve-month prior cash (coverage of 26.91x), for a total dividend coverage of 55.45x.
TIPT-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -1.70x). Thus, the total coverage including share buybacks is 57.15x, 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 net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||7.26||0.47||0.14||1.55||1.83||1.92|
|Dividend Payout (%)||-1080||-8.09||0||-33.74||12.8||39.64|
A complete list of metrics and analysis is available on the company page.
Tiptree, Inc. operates as a holding company, through its subsidiaries engages in specialty insurance, asset management, senior living, and specialty finance businesses. Its insurance subsidiary, Fortegra Financial Corp., is a provider of credit, warranty, and niche program insurance products. The company’s asset management subsidiary, Tiptree Asset Management Co., specializes in managing credit related assets and CLOs. The senior living operations are conducted through Care Investment Trust, which focuses on the acquisition, ownership and leasing of senior housing properties. The specialty finance activities consists of mortgage origination operations and a controlling interest in a company that provides asset based loans. The company is headquartered in New York, NY. For more information visit www.tiptreeinc.com.
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