Daily Stock Analysis: Universal Health Realty Income Trust (UHT)

Universal Health Realty Income Trust, known by the ticker symbol UHT, is a small cap Health Care Facilities Real Estate Investment Trust in the healthcare business sector. This is my first report on UHT for my Viital stock portfolio. I last reviewed UHT more than two years ago for one of my first five dogs of the week stock portfolios.

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Universal Health Realty Income Trust is a health-care REIT with a property portfolio spanning hospitals, acute care hospitals, rehabilitation hospitals, free-standing emergency departments, sub-acute facilities, medical office buildings, and child-care centers. 

Over half of the firm's properties are located in Arizona, Nevada, and Texas. Revenues are earned in the form of a Lease received.

The Trust commenced operations on December 24, 1986, and is headquartered in King of Prussia Pennsylvania.

Three key data points gauge any dividend equity or fund such as Universal Health Realty Income Trust (UHT):

(1) Price

(2) Dividends

(3) Returns

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

UHT Price

Universal's price per share was $59.31 as of yesterday's market close. One year ago its price was $68.81. Thus, UHT's share price tumbled about 13.5% in the past year.

If Universal's stock trades in the range of $55.00 to $65.00 this next year, its recent $59.31 share price might rise by $3.69 to reach $63.00 by December 10, 2022. My estimate is based on URT price performance over the past three months.

UHT Dividends

Universal's most recent quarterly dividend of  $0.705 will pay out on December 30th, to shareholders of record on December 14th. That dividend equates to $2.82 annually and yields 4.75% per yesterday's $59.31 closing price. 

Universal Health Realty Income Trust has paid quarterly dividends increasing generally annually for the past thirty-five years since March 1987.

UHT Returns

Adding the $2.82 annual estimated UHT forward-looking dividend to my $3.69 price upside estimate shows a $6.51 potential gross gain, per share, to be reduced by any costs to trade UHT shares.  

At yesterday's $59.31 price per share, a little over $1000 would buy 17 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.59 per share.

Subtract that maybe $0.59 brokerage cost from my estimated $6.51 gross gain per share results in a net gain of $5.92 X 17 shares = $100.64 for a 10% net gain on a $1,008.27  investment.

Universal Health Realty Income Trust shows a possible 10% net gain including a 4.75% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Universal Health Realty Income Trust (UHT)could generate $47.50 in cash dividends alone. Note that a single share of UHT stock bought at yesterday's closing price was $59.31. Therefore, Universal's share price is almost $12 more than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is not a prime time to pick up Universal Health Realty Income Trust shares. The estimated next-year dividend from $1k invested is nearly about $12 less than UHT's single share price. Consider yourself alerted. It's a sign!  Wait for the share price to drop below $52.00.

All of the estimates above are speculation based on the past history of Universal Health Realty Income Trust. 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 ...

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