LTC Properties (LTC) Maintains Monthly Dividend while Working Through Tenant Challenges

LTC Properties, Inc. (NYSE:LTC) is included among the 10 Monthly Dividend Stocks to Buy and Hold Forever.LTC Properties (LTC) Maintains Monthly Dividend while Working Through Tenant Challenges

LTC Properties, Inc. (NYSE:LTC) is a healthcare REIT. It focuses on senior housing and skilled nursing properties, using triple net leases, mortgage loans, and other income-generating structures. That model tends to produce steady cash flow, which supports its monthly dividend.

The COVID-19 pandemic created real pressure on the seniors housing segment and, in turn, on LTC’s tenants. Some operators struggled to meet rent obligations, and a few filed for bankruptcy. LTC’s balance sheet helped it get through that period. It managed to offset part of the lost income and continued paying its monthly dividend, even as some peers reduced theirs. Even so, the company has not raised its payout since 2016.

There are signs of longer-term support for the business. A study by Syracuse University projects that by 2030, the number of Americans aged 65 and older will reach 73 million. To benefit from that shift, LTC Properties, Inc. (NYSE:LTC) still needs to stabilize its tenant base and work with stronger operators. That alignment will matter if it wants to translate the demographic trend into consistent returns for shareholders. For now, investors are left with a yield of over to 6%.

While we acknowledge the potential of LTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Dow Stocks to Invest In Now and 12 High Dividend Stocks Picked By Billionaire Ray Dalio

Disclosure: None. Follow Insider Monkey on Google News.

View Comments