In the "What Did You Buy Today" thread I saw that Forward Dividends just picked up some more HCP, and Alex is playing with it too. I've been looking at it myself again lately, so I though I'd dust off this here thread and see if people would share more detailed thoughts about it.
I want to increase my exposure to both healthcare and REITs. I'm mostly looking at the "big 3" -- VTR, HCN, and HCP. I'm sure many of the others are great, and may be able to grow a lot faster, but I'm not in a speculating mood and take comfort in the larger capitalization.
Of the big 3, I am mostly attracted to HCP given its 30-year streak of dividend increases and higher starting yield. Its dividend is growing much more slowly than VTR's has in recent years, but HCP's starting yield is more than 2 percent higher. A bird in the hand!
There has been a lot of concern about troubles with HCP's biggest (by far) tenant HCR ManorCare. I just quickly read through the Q1 earnings call transcript, where management fielded a lot of questions on the subject. It seems like a real issue, and HCP took a hit restructuring leases for HCR, but they insist that they got value out of the deal. Of course they'd be inclined to put on a calm front, but I did come away reassured. Seems like they understand the problems and are managing around it.
Anyway, so I'm inclined to pick up a bit more HCP. But I'd love to hear more pros and cons, or arguments for either VTR or HCN instead (or yes, even OHI).
Thanks!
I want to increase my exposure to both healthcare and REITs. I'm mostly looking at the "big 3" -- VTR, HCN, and HCP. I'm sure many of the others are great, and may be able to grow a lot faster, but I'm not in a speculating mood and take comfort in the larger capitalization.
Of the big 3, I am mostly attracted to HCP given its 30-year streak of dividend increases and higher starting yield. Its dividend is growing much more slowly than VTR's has in recent years, but HCP's starting yield is more than 2 percent higher. A bird in the hand!
There has been a lot of concern about troubles with HCP's biggest (by far) tenant HCR ManorCare. I just quickly read through the Q1 earnings call transcript, where management fielded a lot of questions on the subject. It seems like a real issue, and HCP took a hit restructuring leases for HCR, but they insist that they got value out of the deal. Of course they'd be inclined to put on a calm front, but I did come away reassured. Seems like they understand the problems and are managing around it.
Anyway, so I'm inclined to pick up a bit more HCP. But I'd love to hear more pros and cons, or arguments for either VTR or HCN instead (or yes, even OHI).
Thanks!