A portfolio of stocks I started and named Volio Folio, September 3, holds 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
I'm reviewing today the second of five healthcare stocks striving to be picked to join the Volio folio collection. This would be the fifth pick for Volio!
This healthcare collection includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; healthcare facilities; medical care; medical devices; medical distribution; medical supplies.
My subject today is a mid cap healthcare facilities - REIT named Healthcare Realty Trust Inc. Their trading ticker symbol is HR. I last reported about HR on December 26, 2018.
Healthcare Realty Trust Inc is a healthcare facility real estate investment trust. The company focuses on owning, leasing, and managing outpatient facilities and other healthcare properties.
The company considers merger and acquisition investment as a component of its operational growth strategy. It works with developers that have strong ties to a local health system and physicians. The company works to invest in outpatient facilities that are integral to a hospital's operations. It generates all of its revenue in the United States.
As of June 30, 2019, the Company owned 201 real estate properties in 26 states totaling 15.3 million square feet and was valued at approximately $5.5 billion.
The Company is based in Nashville, TN.
I use three key data points to gauge dividend-paying equities or funds like Healthcare Realty Trust Inc. (HR):
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
HR Price
HR's price per share closed at $33.49 yesterday. A year ago its price was $28.77. In the past year, its price increased by $4.72 or 16.4%.
Assuming HR's stock trades in the range of $28.00 to $38.00 this next year, HR's recent $33.49 price could rise by $1.01 and get to $34.50 by early October 2020. If the upward momentum holds.
HR Dividends
Healthcare Realty's latest declared quarterly dividend was $0.30 paid August 30th.
That $0.30 Q dividend equates to $120 annually and yields 3.58% based on yesterday's $33.49 closing price.
HR Gains?
Adding the $1.20 annual estimated dividend to my $1.01 estimate of Healthcare Realty's price upside shows a $2.21 potential gross gain, per share, which will be reduced by costs to trade these shares.
Say we put a little over $1,000.00 today into Healthcare Realty at its recent $33.49 price, we'd buy 30 shares of Healthcare Realty Trust Inc. (HR).
A $10 broker fee paid half at purchase and half at sale will cost us about $0.33 per share.
Subtract that $0.33 brokerage cost from the estimated $2.21 gross estimated gain leaves a net gain of $1.88 X 30 shares = $56.40 or a 5.6% net gain on a $1,004.70 investment.
Therefore, Healthcare Realty Trust Inc, whose trading ticker symbol is HR now shows a possible net gain of 5.6% including a 3.58% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Healthcare Realty Trust Inc. (HR) is worth your time and money.
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