National Health Investors is a real estate investment trust (REIT) that focuses on investing in healthcare properties, primarily skilled nursing facilities and assisted living communities.
Their primary business model involves acquiring and managing these properties, generating revenue through rent and other income streams.
National Health Investors has a strong track record of paying consistent dividends, with a history of increasing its dividend payout over time.
With a dividend yield of around 7%, investors can expect a relatively high return on their investment.
Dividend
National Health Investors has been paying out quarterly dividends to its shareholders since January 29, 2016.
The company's dividend yield has been relatively stable, ranging from 5.2% to 6.8% over the years.
As of January 06, 2025, National Health Investors' dividend yield was 5.2%, slightly lower than the Health Care REITs industry median of 5.3%.
National Health Investors' dividend payments are well-covered by its earnings, with a payout ratio of 81.5%.
The company's cash payout ratio is also relatively high, at 82.3%, indicating that its dividend payments are covered by its cash flows.
Over the past five years, National Health Investors' dividend yield has averaged 6.4% per year.
National Health Investors has paid out quarterly dividends ranging from $0.85 to $1.10 per share since 2016.
Performance
National Health Investors stock has seen significant price fluctuations over the past year, with a 1 Year Change of 28.77%.
The stock has a 52 Week High of $86.13 and a 52 Week Low of $51.59, indicating a wide range of potential returns. The current share price is $69.20.
The stock's Beta is 1.08, which suggests it is moderately volatile compared to the overall market.
Price History & Performance
The price history of National Health Investors is quite interesting. The current share price is $69.20.
The 52-week high was a notable $86.13, while the 52-week low was a concern at $51.59. The beta of 1.08 indicates a relatively volatile stock.
A 1-month change of -8.45% is a significant drop, but the 3-month change of -14.68% is even more concerning. On the other hand, the 1-year change of 28.77% is a positive sign.
Over the past 3 years, the stock has changed by 12.61%, and over 5 years, it has changed by -17.58%. However, since the IPO, the stock has increased by a substantial 239.63%.
Growth
National Health Investors, Inc.'s dividend growth is a key factor in its attractiveness as a dividend-paying stock.
The company's Dividend Growth Score is 31, which translates into a Dividend Growth Grade of D, considered Weak.
National Health Investors, Inc. must have a valid percentage and corresponding ranking for at least three of the four growth components to receive a Dividend Growth Score.
This includes growth in cash flow from operations over the most recent 12-month period, return on assets (ROA) relative to the sector median, dividend growth over the most recent 12-month period, and five-year average annualized dividend growth rate.
The company's five-year average annualized dividend growth rate is part of the Dividend Growth Score calculation.
National Health Investors, Inc.'s cash flow from operations over the most recent 12-month period is one of the factors considered in its Dividend Growth Score.
Strength
A company's strength is not just about its ability to pay dividends, but also about its financial foundation. National Health Investors, Inc. has a Dividend Strength Score of 64, which translates into a Dividend Strength Grade of B and is considered Strong.
Investors should look at a company's leverage ratios, cash flows, and payout ratios to understand its financial strength. A company's ability to generate cash flow and return capital to shareholders is crucial.
The two important metrics that determine National Health Investors, Inc.'s Dividend Strength Score and Grade are earnings payout ratio relative to its sector median and dividend sustainability score. These metrics provide useful insights into a company's ability to sustain its dividend payments.
Here's a breakdown of these metrics:
- Earnings payout ratio relative to its sector median: This metric helps investors understand if a company is generating enough cash to cover its dividends year to year.
- Dividend sustainability score: This score indicates the likelihood of a company's dividend payments being sustainable.
Understanding these metrics is essential for investors seeking secure and growing dividend payments.
Sources
- https://simplywall.st/stocks/us/real-estate/nyse-nhi/national-health-investors
- https://simplywall.st/stocks/us/real-estate/nyse-nhi/national-health-investors/dividend
- https://stocknews.com/stock/NHI/dividends/
- https://stockanalysis.com/stocks/nhi/dividend/
- https://www.aaii.com/investingideas/article/22492-is-national-health-investors-inc-nhi-a-good-dividend-stock
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