HCN has a market cap of 2.5B and a current yield of 6.18%. This chart shows that HCN has had only half of the price appreciation of the S&P 500 since 1992; however, the compound return of its high dividend yield would have more than made up the difference. The quarterly dividend has risen from $.52 in 1996 to $.64 at present. HCN has a low correlation to the broader market and it demonstrated from 2000 to 2003 that it can go up while the S&P is going down. The stock’s beta is .90.
HCN has had quite a run this year while investors have been seeking out investments with higher yields among the REITs, and it has gained more than 30% since the May lows. The short-term trend turned down after the elections, but now HCN has started rallying again and appears poised to start making new highs next week.
This may be a good time for aggressive investors to buy HCN. There appears to be good support between 35 and 36. I would consider HCN attractively priced in that zone, and I’m not going to chase it into the 40s.
HCN 1-yr chart