Daily Stock Pick: Healthcare Trust Of America (HTA)

I'm now looking for a second stalwart healthcare sector representative for my new Ivy portfolio.

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.

Today I'm reviewing another mid-cap healthcare facilities real estate investment trust, Healthcare Trust of America Inc Its trading ticker symbol is HTA.

Healthcare Trust of America Inc is a real estate investment trust that owns and operates medical office buildings in the United States. The company generates all of its revenue in the United States. HTA is the largest dedicated owner and operator of Medical Office Buildings in the United States, comprising approximately 23.2 million square feet of space, with $6.8 billion invested  HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations. Investments are targeted to build critical mass in 20 to 25 leading gateway markets that generally have leading university and medical institutions, these strategic markets show strong long-term demand for quality medical office space.

Headquartered in Scottsdale, Arizona, HTA was Founded in 2006 and listed on the New York Stock Exchange in 2012.

I use three key data points to gauge the value of any dividend equity or fund like Healthcare Trust of America Inc (HTA):

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest. But those first three primary keys, best tell whether a company has made, is making, and will make money.

HTA Price

HTA's price per share was $25.28 yesterday. A year ago its price was $30.06. So price dropped $4.78 per share last year, or almost 16%.

Assuming HTA's stock will trade in the range of $20 to $30 next year, HTA's recent $25.28 price could recover by $1.72 and grow to $27.00 by late-December, 2019.

HTA Dividends

HTA's most recent monthly dividend was $0.31 declared October 25th and payable, January 9th. That $0.31 quarterly stipend equals an annual payout of $1.24 yielding 4.9% at yesterday's $25.28 price.

Gains For HTA?

Adding the $1.24 annual estimated dividend to my estimated $1.72 annual price upside estimate for Healthcare Trust of America Inc (HTA) totals up to a $2.96 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

For a little over $1,000.00 invested today at the $25.28 recent price, we could buy 40 HTA shares.

A $10 broker fee paid half at purchase and half at sale costs us $0.25 per share.

Subtract that $0.25 brokerage cost from the estimated $2.96 gross annual gain leaves a net gain of $2.71 X 40 shares = $108.40 for a 10.75% net gain on a $1,011.20 investment.

Therefore, Healthcare Trust of America Inc whose trading ticker symbol is HTA, now shows a possible 10.75% net gain including a 4.9% dividend yield.

Twelve brokers cover this stock:

Three brokers say "buy" HTA

One broker says HTA will "outperform" peers.

Eight brokers say "hold" HTA shares.

The eight covering brokers are more optimistic for HTA's price recovery than I am. They strike a median price upside at $28.55 next year. Which, you will recall, is $1.55 higher than my $27.00 estimated one year target.

Therefore, you can look at Healthcare Trust of America Inc and see it has made money, is making money, and could rise to net a 10% to 15% net annual gain including that 4.9% estimated 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 determine if Healthcare Trust of America Inc is worth your time and money.

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, recommendation ...

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