National Health Investors, Inc. (NYSE: NHI) announced a quarterly dividend of $0.92 per share, with the ex-dividend date set for December 31, 2023. Shareholders on record will receive the dividend payment on January 30, 2024. This payout translates to an annualized dividend of $3.68, yielding approximately 4.8%.
Despite this dividend announcement, National Health Investors has faced challenges in maintaining its dividend payments. Over the past three years, the company has averaged a dividend decrease of 0.0% annually. Currently, its dividend payout ratio stands at 112.5%, indicating that the company is relying on its balance sheet rather than earnings to sustain these payments.
Analysts project that National Health Investors will earn $4.66 per share in the upcoming year. This estimate suggests that the company will likely cover its annual dividend with an expected payout ratio of 79.0%, allowing for some financial flexibility.
Market Performance and Analyst Ratings
On Monday, shares of National Health Investors opened at $77.13. The company has a market capitalization of $3.67 billion and maintains a price-to-earnings ratio of 24.33. With a debt-to-equity ratio of 0.74, the firm appears to manage its leverage effectively. The stock’s 50-day moving average is $77.08, while its 200-day moving average sits at $75.32, reflecting relative stability.
National Health Investors has experienced fluctuations in its stock price, with a one-year low of $65.13 and a high of $80.56. Investment analysts have recently provided varied outlooks on the stock. National Bankshares set a price target of $90.00 in a report published on October 1, 2023. Truist Financial has increased its target from $81.00 to $83.00 and assigned a “buy” rating as of December 15, 2023. Meanwhile, Wells Fargo raised its target from $80.00 to $85.00, giving the stock an “equal weight” rating on November 25, 2023.
In the latest assessments, Weiss Ratings reaffirmed a “buy (b)” rating, and Cantor Fitzgerald initiated coverage, issuing an “overweight” rating with a price objective of $90.00. Overall, one investment analyst has rated the stock as a Strong Buy, four have issued Buy ratings, and one has assigned a Hold rating. According to MarketBeat, the consensus rating stands at “Buy,” with an average price target of $87.33.
Company Overview
Founded in 1991, National Health Investors, Inc. is a specialized real estate investment trust (REIT) focusing on high-quality healthcare and senior housing facilities across the United States. The company’s portfolio includes skilled nursing centers, assisted living communities, behavioral health facilities, dialysis clinics, and medical office buildings.
National Health Investors typically engages in long-term net-lease agreements with experienced healthcare operators. This strategy helps provide stable rental income while allowing tenants to focus on delivering quality care. Since its initial public offering, the company has pursued a disciplined growth strategy, emphasizing strategic acquisitions, joint ventures, and selective development opportunities.
As National Health Investors prepares for its upcoming dividend distribution, stakeholders will be watching closely to see how the company navigates its financial obligations amid shifting market conditions.
