Our analysis is based on comparing Tiptree, Inc. with the following peers – HCP, Inc., Universal Health Realty Income Trust, Ventas, Inc., Ashford Hospitality Trust, Inc., Welltower, Inc., Sabra Health Care REIT, Inc., CIM Commercial Trust Corporation, Gyrodyne LLC, Healthcare Trust of America, Inc. Class A and Duke Realty Corporation (HCP-US, UHT-US, VTR-US, AHT-US, HCN-US, SBRA-US, CMCT-US, GYRO-US, HTA-US and DRE-US).
Tiptree, Inc.’s dividend yield is 1.79 percent and its dividend payout is 17.44 percent. This compares to a peer average dividend yield of 4.79 percent and a payout level of 92.20 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 March 31, 2017), TIPT-US paid a medium quality dividend, which represents a yield of 1.79% 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 41.70x, 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 March 31, 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 -9.09x), investing cash flow (coverage of -76.87x), issuance cash flow (coverage of 86.75x) and twelve-month prior cash (coverage of 27.49x), for a total dividend coverage of 30.66x.
TIPT-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -13.71x). Thus, the total coverage including share buybacks is 56.41x, 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||1.79|
|Dividend Payout (%)||-1080||-8.09||0||-33.74||12.8||17.44|
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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