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HCP Spins Off Quality Care Properties: What’s The Outlook For QCP?

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.

Meanwhile, HCP is a rock-solid dividend growth stock. It is the only REIT on the Dividend Aristocrats list. You can see the entire list of Dividend Aristocrats by clicking here.

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.

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