LTC Properties: 5% Yield, Strong Dividend Coverage, Attractive Growth, Pays Monthly

Jan. 06, 2017 12:37 PM ETLTC Properties, Inc. (LTC)22 Comments
Achilles Research profile picture
Achilles Research


  • LTC Properties is a high quality healthcare REIT.
  • The REIT profits from a strong network of operator relationships, is highly diversified.
  • Though I think shares are fairly valued, strong dividend coverage and potential for growth support the bullcase.
  • LTC Properties pays a 5 percent yield, pays monthly.

LTC Properties, Inc. (NYSE:LTC) is an interesting income play in the healthcare REIT sector. LTC Properties invests heavily in the growth of its real estate portfolio, and has good dividend coverage. Though shares are about fairly valued, LTC Properties makes for a good income vehicle with a monthly dividend distribution. An investment in LTC Properties also comes with a 5 percent dividend yield.

Healthcare REITs are poised to profit from an increase in life expectancy, and higher institutionalization rates. In fact, the older people get, and the more assistance they need in old age, the stronger the profits for healthcare REITs will be. LTC Properties, for instance, has invested a significant amount of capital in a portfolio of skilled nursing, assisted living, and range of care properties, and is poised to profit from increasing demand for such facilities.

Source: LTC Properties

LTC Properties' healthcare-related properties are spread out all over the country:

Source: LTC Properties

Investments Today Will Yield Big Dividends Later

LTC Properties is not the only healthcare REIT that is continuously investing in the expansion of its healthcare real estate portfolio, and it is surely not the only company that has woken up to the long term growth opportunity that is tied to an increase in people's life expectancy.

LTC Properties has invested a lot of money in the growth of its real estate portfolio, which will likely pay big dividends down the road.

Source: LTC Properties

Strong Operator Relationships

Part of what drives value at healthcare REITs is the relationships they have with operating companies that manage the properties.

Healthcare REITs with strong operator relationships are at a competitive advantage, and can use those relationships to grow and scale their business. LTC Properties has a robust and diversified network of profitable operator relationships that will support the Real Estate

This article was written by

Achilles Research profile picture
I am a dividend investor and look for undervalued investments in the stock market. I identify misunderstood and undervalued equity investments and hold those securities until their price approximates my estimate of intrinsic value. I am a long-term investor only. I am building a $100,000 high-yield income portfolio. I am running this portfolio as an experiment to see if long-term sustainable income can be generated from a diversified pool of high-risk, high-yield securities. I am willing to accept high risk in order to meet my performance goals.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (22)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.