CareTrust REIT (CTRE) will raise its quarterly dividend by 11.1 percent to $0.25 per share in 2020. This follows a 9.8 percent dividend hike by the health care REIT last year and marks 6 consecutive years of annual dividend increases.

The next dividend is payable to common stockholders of record as of the close of business on March 31, 2020.  A new annual rate of $1.00 per share yields 6.9% at a stock price of $14.45.
 

“We are pleased to be returning additional value to shareholders again this year by continuing our pattern of regular dividend increases,” said Greg Stapley, CareTrust’s Chairman and Chief Executive Officer in the company's press release announcing this dividend hike. Mr. Stapley noted that the growth in the company’s dividend is consistent with the company’s asset and earnings growth. In 2019 CareTrust invested a record $341 million in new assets at a blended initial cash yield of approximately 8.8%.

“Notwithstanding the increase, with our growing portfolio our payout ratio will remain among the lowest in our per group, providing capital for continued expansion while representing one of the best-covered dividends in our space,” he added. Management affirmed that the company plans to pay the dividend on or about April 15, 2020.

CareTrust REIT, Inc. is a real estate investment trust engaged in the ownership, acquisition and leasing of seniors housing and healthcare-related properties.  The company's real estate portfolio included skilled nursing facilities (SNFs), SNF Campuses, assisted living facilities and independent living facilities. The company's beds and units leased to The Ensign Group and are located in Arizona, California, Colorado, Idaho, Iowa, Nebraska, Nevada, Texas, Utah and Washington; the remaining leased properties are located in California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Maryland, Michigan, Minnesota, North Carolina, Texas, Virginia, Washington and Wisconsin. CareTrust REIT became a public company in May 2014 and a dividend has been paid since the fourth quarter of 2014.