NHI is listed in the Financial table section of our High Dividend Stocks by Sector Tables .  This month they reported growth in earnings and revenue for the 3-month and 9-month periods ending 9/30/09:

Total revenues for the three months ended September 30, 2009, increased 25.6%.  Net income increased 9.5%. 
Diluted 2009 EPS was $.63 per share vs. $.57 per share in 2008.

Net income for the nine months ended September 30, 2009 increased 8.6%. 
Diluted 2009 EPS was $1.74 per share vs. $1.59 per share in 2008.  Total revenues for the nine months ended September 30, 2009 increased 9.3%.

NHI has investments in real estate and mortgage notes receivable in 125 health care properties located in 18 states consisting of 84 skilled nursing facilities, 15 assisted living facilities, 4 medical office buildings, 4 retirement centers, 1 acute care hospital and 17 residential projects for the developmentally disabled. These investments consisted of approximately $230,658,000 of net real estate investments with 16 lessees and $98,372,000 aggregate carrying value of loans to 14 borrowers.

Of the 76 health care properties leased to operators, 41 are leased to National HealthCare Corporation (”NHC”), a publicly-held company and NHI’s largest customer. The current lease with NHC expires December 31, 2021 (excluding 3 additional 5-year renewal options).

NHI beats its peers handily in several key ratios, including financial strength, valuation, profitability, and management effectiveness, in our Industry Comparison Chart:

	NHI	Real Estate Operations Industry
Total Debt/Equity	64.00%	199.80%
Profit Margin	87.67%	14.23%
P/E Ratio	15.47	33.37
Price/Free Cash/Share	12.47	38.89
ROE	12.74	4.70
ROI	86.96	1.92
ROA	12.02	1.38

NHI’s current dividend yield is approx. 7%, and it traded on Thursday just below $32.00.

They recently announced that they’ll pay a $.55 dividend on Jan. 29, 2010, to shareholders of record as of December 31, 2009.

For dividend investors looking for solid dividend paying stocks, NHI appears to be one of the best stocks in its industry.

There are no options available for NHI.

Disclosure: No positions

Disclaimer: This article is written for informational purposes only.

Tags: best stocks, dividend, dividend paying stocks, dividend yield, Healthcare REIT, high dividend stocks, NHI, REIT

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