Daily Stock Analysis: CareTrust REIT

real estate letter blocks

Image Source: Unsplash

Care Trust REIT Inc has the ticker symbol CTRE and is a member of the Healthcare sector as a facilities company. This is my first ever report on Healthcare Trust of America for my Vista Portfolio. I have reported on it for others.

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development, and leasing of skilled nursing, seniors housing, and other healthcare-related properties. 

With a nationwide portfolio of long-term net-leased properties and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States. 

It is headquartered in San Clemente, CA.

Three key data points gauge dividend equities or funds like Care Trust REIT Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

CTRE Price

CareTrust's price per share closed at $24.02 yesterday. Last year its price was $12.35. Price per share has increased nearly 94.5% from the depths of the COVID market slump. 

If CareTrust REIT Inc's stock trades in the range of $8 to $28 this year, its recent $24.02 price might rise by $0.98 to reach $25.00 by March 19, 2022. My estimate is slightly above that of ten analysts tracking CTRE.

CTRE Dividends

CareTrust REIT Inc's most recently declared quarterly dividend was $0.265 payable April 15th. Dividends are estimated to total $1.06 per share annually and yield 4.41% at yesterday's $24.02 closing price. It has paid annually increasing dividends for seven years.

CTRE Returns

Adding the $1.06 annual CTRE anticipated dividend to my $0.98 price upside shows a $2.04 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in CareTrust REIT Inc at $24.02 per share and we'd buy 42 shares of CTRE stock.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.24 per share.

Subtract that maybe $0.24 brokerage cost from my estimated $2.04 gross gain per share results in a net gain of $1.80 X 42 shares = $75.60 for a 7.5% net gain on a $1,008.84 investment.

CareTrust REIT Inc shows a possible 7.5% net gain including a 4.41% dividend yield. 

Over the next year at this time, a $1000 investment in CTRE could generate $44.10 in cash dividends. And a single share bought at yesterday's closing price was about $24! So, if CTRE is your kind of healthcare facilities investment, their price is well below the annual dividend income from $1,000 invested. This augurs that now is the time to consider adding these shares to your portfolio.

All of the estimates above are speculation based on the past history of CareTrust REIT Inc. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.