HCP (NYSE:HCP), a health care real estate investment trust, recently made a huge decision that affects all of its shareholders. In response to deteriorating performance at HCR ManorCare-one of its biggest tenants-HCP spun off its ManorCare portfolio into a separate company.
The new company is called Quality Care Properties (NYSE:QCP), or QCP.
Investors expecting QCP to mimic HCP may be in for an unwelcome surprise. QCP has not yet set a dividend rate. Given its fundamental challenges, it is unclear whether QCP will be able to pay as high a dividend as HCP.
And, it is also uncertain if QCP's fundamentals will improve enough to justify dividend growth moving forward.
QCP is just starting out and has a difficult turnaround ahead, so it has a long way to go before it matches HCP's dividend track record.