National Health Investors, (NHI) – A Healthcare REIT With Earnings Growth

By Robert Hauver

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.

Capstead Mortgage, A REIT High Dividend Stock – Aug. 22, 2009

By Robert Hauver

Capstead Mortgage, (CMO), is a mortgage REIT which invests mostly in residential Adjustable Rate Mortgages that are issued and backed by U.S. government agencies, Fannie Mae, Freddie Mac, and Ginnie Mae.

CMO’s current dividend yield is over 17%.

To see industry comparisons and earnings info, Click here…

Alexandria Real Estate (ARE) – A High Dividend REIT – August 3, 2009

By Robert Hauver

Looking for good dividend paying stocks, but feeling left behind by the market’s reawakened rally?  Here are 3 steps you can take to find an undervalued stock that’s been somewhat left behind:

1. Look for an unloved sector: Health Care is only up 7.3% year-to-date, far behind the most of the other sectors, the majority of whom have posted double-digit gains.

2. Look in an unloved income sub-sector, such as the REIT sector:

The Vanguard REIT ETF is down over 11% this year, due to concerns about the refinancing difficulties that REIT’s with heavy short-term debt loads have had in the credit crisis.  (Analysts usually follow FFO, “funds from operations”, to monitor a REIT’s ability to cover its dividend).

Click here… for 4 ways to profit on Alexandria Real Estate…

Timber – A High Yield Asset That Never Stops Growing – May 27, 2009

Who says that money doesn’t grow on trees? Did you know that timber was one of the ONLY assets that appreciated in 2008?

Just take a look at the high dividend stocks in the diversified timber REIT sub-industry, and you might just might launch into a verse of Monty Python’s “Lumberjack Song”…

One Timber Reit that comes up in a screen for high dividend yields is Potlatch Corp., (PCH).

A metric that investors use when analyzing timber companies is the

amount of acres/share. At Potlatch’s current price of $26.77, you get approximately 38-39 acres/share, plus you get the rest of the business for free.

You can juice PCH’s high dividend yield even further, by selling January 2010 covered calls, essentially earning an extra, or “double dividend”.

Click here… to continue reading…