Daily Stock Pick: Healthcare Trust Of America
A portfolio of stocks I've been building since September 3 is named Volio. It will eventually hold 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!
Today I'm reviewing the first of five healthcare sector stocks striving to join my Volio folio. This could be the twenty-second pick for Volio!
That healthcare sector 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; long-term care facilities; medical care; medical devices; medical distribution; medical supplies.
My subject today is mid-cap healthcare, facility trust named, Healthcare Trust of America Inc. Their trading ticker symbol is HTA. This my second report on Healthcare Trust of America Inc. I last reported on them on December 28, 2018 fr my Ivy 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. 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.
The company was founded in 2006 and is headquartered in Scottsdale, Arizona.
I use three key data points to gauge dividend-paying equities or funds like Healthcare Trust of America Inc:
(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.
HTA Price
HTA's price per share closed at $32.10 Friday. A year ago its price was $27.49. So, in the past nearly a year its market price grew by $4.61, or almost 16.8.%.
Assuming HTA's stock trades in the range of $27 to $35 this next year, its recent $32.10 price could rise by $1.90 to reach $34.00 by January 27, 2021, assuming upward price momentum continues.
HTA Dividends
HTA's latest declared quarterly dividend was $0.315, paid January 9. That $0.315 Q dividend produces an annual amount of $1.26 yielding 3.93% at Friday's $32.10 share price.
HTA Gains?
Adding the $1.26 annual estimated dividend to my $1.90 estimate of Healthcare Trust of America Inc price upside shows a $3.16 potential gross gain, per share, which will be reduced by any costs to trade those shares.
As for costs, if we put a little under $1,000.00 today in Healthcare Trust of America Inc at its recent $32.10 price, would buy 31 shares of HTA.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.32 per share.
Subtract that $0.32 brokerage cost from the estimated $3.16 gross estimated gain per share leaves a net gain of $2.84 X 31 shares = $88.04 or an 8.85% net gain on a $995.10 investment.
Therefore, Healthcare Trust of America Inc, whose trading ticker symbol is HTA shows a possible 8.85% net gain including a 3.93% 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 Trust of America Inc, is worth your time and money.
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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