Daily Stock Pick: Community Healthcare

A portfolio of stocks I've been building since September 3, 2019, named Volio, 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 second of five healthcare sector stocks poised to join my Volio folio this week. This could be my thirty-seventh 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; healthcare facilities; medical care; medical devices; medical distribution; medical supplies.

My subject today is a healthcare facilities REIT - named, Community Healthcare Trust Inc. Its trading ticker symbol is CHCT. This is my first-ever report for Community Healthcare Trust Inc.

Community Healthcare Trust Inc is an integrated healthcare real estate company in the United States.

The company owns and acquires, or finances, real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers in non-urban markets.

The company derives most of its revenues from its real estate property and mortgage notes portfolio. The company's rental and mortgage interest income is recognized based on contractual arrangements with its tenants and borrowers.

The Company had investments of approximately $602.9 million in 118 real estate properties as of December 31, 2019, located in 32 states, totaling approximately 2.6 million square feet.

It is headquartered in Franklin, TN.

I use three key data points to gauge dividend equities or funds like Community Healthcare Trust 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.

CHCT Price

CHCT's price per share closed at $38.03 yesterday. A year ago their price was $37.01. Market price increased $1.02 or just about 2.75% in the past year.

Assuming CHCT's stock trades in the range of $20 to $50 this next year, its recent $38.03 price might rise by $1.97 to reach $40.00 by May 12, 2021.

CHCT Dividends

CHCT's most recent declared quarterly dividend was $0.42 payable May 29th. That $0.42 Q dividend equates to $1.68 annually and yields 4.42% at yesterday's $38.03 share price.

CHCT Gains?

Adding the $1.68 annual estimated dividend to my $1.97 optimistic estimate of CHCT's price upside shows a $3.65 potential gross gain, per share, reduced by any costs to trade those shares.

A little under $1,000.00 invested today in Community Healthcare Trust Inc shares at their $38.03 price, buys 26 shares of CHCT stock.

A $10 broker fee paid half at purchase and half at sale could cost about $0.39 per share.

Subtract that $0.38 brokerage cost from my estimated $3.65 gross gain per share results in a net gain of $3.27 X 26 shares = $85.02 for an 8.5% net gain on a $988.78 investment.

Community Healthcare Trust Inc shows a possible 8.5% net gain including a 4.42% dividend yield. It could be more, it could be less.

The above speculation is based on past performance and supposition. Only time and money invested will tell if Community Healthcare Trust Inc is worth it.

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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