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+--- Thread: LTC PROPERTIES (/showthread.php?tid=708)
LTC PROPERTIES - DividendDragon - 10-18-2014
Just been looking at this stock and conducting some research
Excuse me if this sounds newbie (I'm new to investing after all)
But I'm very worried/put off by the fact that LTC has a dividend payout ratio of over 100% since 2007.
Surely this isn't good/sustainable?
I'm aware of the EPS growth over this period and the forecast for next year, I just can't see the dividend increases keeping up with earnings.
Am I right or is there something I'm missing here?
Please educate me!
Thanks
Lewys
RE: LTC PROPERTIES - rapidacid - 10-18-2014
For REITs:
http://www.investopedia.com/articles/04/112204.asp
" The general calculation involves adding depreciation back to net income (since depreciation is not a real use of cash, as discussed in the above paragraph) and subtracting the gains on the sales of depreciable property. These gains are subtracted because we assume that they are not recurring and therefore do not contribute to the sustainable dividend-paying capacity of the REIT. "
Payout Ratio for TTM for LTC looks something like:
Net Income : 67,000,000
Depreciation: 25,000,000
_______
92,000,000
Dividends: 73,000,000
73/92 = 79.3% payout ratio
RE: LTC PROPERTIES - DividendDragon - 10-18-2014
Thanks for this!
Always ready to learn
