10-05-2013, 09:57 PM
(10-04-2013, 01:17 PM)hendi_alex Wrote: According to a Seeking Alpha article, HCP is the only REIT on the Dividend Aristocrats index. Shares originally tumbled with the whole sector because of interest rate fears. Now the CEO has been fired in what would have to be viewed as a very unusual way. The company has experienced great success during Flaherty's ten year reign. So the main question arrives. Is HCP a bargain at today's price? Shares have moved from $55.28 in May to under $39 today.
Current yield = 5.4%
For the second quarter, funds available for distribution = $0.62 per share, against a distribution of $0.525 per share. Pay out ratio of dividend versus FAD = 85%
Dividend has steadily moved from $0.30 in 1997 to its current $0.525 today, and there was a 2:1 split in 2004.
I just bought a few shares at $38.90, but will watch very closely until the conference call at the end of this month. It is pretty clear that the company has not told the entire story related to this firing.
Fastgraphs has the stock at slightly overvalued compared to its historical FFO(current 16.8, historical 14.8). That being said, I know nothing about HCP.