Daily Stock Analysis: Health Care Trust Of America (HTA)

Healthcare Trust of America Inc., known by the ticker symbol HTA, is a mid cap HealthCare Facilities Real Estate Investment Trust in the healthcare business sector. This is my first report on HTA for my Viital stock portfolio. I last reviewed HTA nine months ago, March 18th when I reviewed it for my Vista stock portfolio.

Healthcare Trust of America Inc. is a healthcare facility REIT. The company operates one segment, which engages in acquiring and operating medical office buildings. 

Doctor, Dentist, Dental, Clinic, Medical, Surgeon

Image Source: Pixabay

The company generates all of its revenue in the United States. It relies on its in-house leasing platform in order to generate scale, maximize expense efficiency, and build tenant relationships. 

Its strategy focuses on stable cash flows with relatively low vacancy risk, with consideration of merger and acquisition investment to supplement its operational growth strategy.

Headquartered in Scottsdale, Arizona, Healthcare Trust of America Inc was founded in 2006. 

Three key data points gauge any dividend equity or fund such as Healthcare Trust of America Inc. (HTA):

(1) Price

(2) Dividends

(3) Returns

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

HTA Price

Healthcare Trust's price per share was $34.30 as of yesterday's market close. One year ago its price was $25.88. Thus, CTRE's share price grew 32.5% in the past year.

If Healthcare Trust's stock trades in the range of $26.00 to $36.00 this next year, its recent $34.30 share price could rise by $1.20 to reach $35.50 by December 7, 2022. My estimate matches the median of the estimates from ten analysts who cover Healthcare Trust of America for their brokerage firms.

HTA Dividends

Healthcare Trust of America's most recent quarterly dividend of  $0.325 will pay out January 11th, 2022 to shareholders of record January 3rd. That dividend equates to $1.30 annually and yields 3.79% per yesterday's $34.30 closing price. 

Healthcare Trust of America Inc has paid quarterly dividends increasing generally annually for the past eight years since January, 2014.

HTA Returns

Adding the $1.30 annual estimated HTA forward-looking dividend to my $1.20 price upside estimate shows a $2.50 potential gross gain, per share, to be reduced by any costs to trade HTA shares.  

At yesterday's $34.30 price per share, a little under $1000 would buy 29 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.34 per share.

Subtract that maybe $0.34 brokerage cost from my estimated $2.50 gross gain per share results in a net gain of $2.16 X 29 shares = $62.64 for a 6.26% net gain on a $997.60  investment.

So it is that Healthcare Trust of America Inc. shows a possible 6.26% net gain including a 3.79% forward estimated dividend yield. 

Over the next year at this time a $1000 investment in Healthcare Trust of America Inc  could generate $37.90 in cash dividends alone. Note that a single share of HTA stock bought at yesterday's closing price was $34.30. Therefore, Healthcare Trust of America share price is $3.60 under the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now may be a prime time to pickup Healthcare Trust of America Inc. shares. The estimated next-year dividend from $1k invested $3.60 greater than HTA's single share price. Consider yourself alerted. Its a sign!  

All of the estimates above are speculation based on the past history of Healthcare Trust of America Inc. Only time and money invested in this stock will determine its market value.

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, ...

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