From an analytical perspective, If you are a dividend investor looking to maximize the income your portfolio generates, you will want to do a deep dive on Universal Health Realty Income Trust (UHT -1.
It has a historically high 7, given the current landscape. 4% dividend yield and a great track record of dividend growth to back it up.
The dividend stock won't be right for every income investor, but for a select few it could be the smartest dividend stock to buy right now (which is quite significant).
Additionally, What makes a dividend stock attractive (this bears monitoring), given the current landscape. One of the first things that income investors look for is dividend yield.
Universal Health Realty Income Trust has that factor pegged, with a huge 7. Additionally, 4% dividend yield. But some reference points will help. Nevertheless, Image source: Getty Images.
Additionally, Meanwhile, The S&P 500 (^GSPC 0, considering recent developments. 40%) has an itty bitty yield of 1.
The evidence shows average healthcare stock has a yield of 1, given the current landscape. However, And the average real estate investment trust (REIT) has a yield of roughly 4.
Very ly, Universal Health Realty is more attractive on the yield front, in this volatile climate. But yield has to be considered along with reliability.
Moreover, For example, one of the most reliable dividend-paying healthcare stocks is Johnson & Johnson (JNJ -0. 74%), with 63 years of annual dividend hikes behind it, in today's financial world.
Next up is Becton, Dickinson (BDX 0. Furthermore, 92%), with 53 years of hikes. Those two companies are Dividend Kings, an elite that Universal Health Realty simply can't claim.
That said, Johnson & Johnson's yield is 3. On the other hand, 4% and Becton, Dickinson's yield is an even smaller 2. Universal Health Realty's dividend has been hiked annually for four decades.
That's a pretty good streak, even though it isn't yet a Dividend King, when you add in the real estate investment trust's huge yield.
A $1,000 investment will get you around 24 s of the healthcare-focused REIT. Moreover, Data by YCharts.
Universal Health Realty Trust is for income right now So a lofty yield and a strong dividend history make Universal Health Realty Trust attractive.
It's extra attractive right now because the yield is near the highest levels of the past decade, suggesting the stock is on the sale rack, amid market uncertainty.
But there's just one small blem: Dividend growth has never been a big selling point here, in this volatile climate.
However, Meanwhile, As the chart above highlights, both JNJ's and Becton, Dickinson's dividend growth has been far superior to that of Universal Health Realty Trust.
On the other hand, Additionally, The goal for Universal Health Realty Trust isn't rapid dividend growth, it is reliable growth.
Additionally, It's a slow and steady tortoise, and that is ly all it will ever be. Nevertheless, Furthermore, And that brings up the second big issue that investors need to know.
Universal Health Realty Trust is externally managed by Universal Health Services (UHS 0. Furthermore, 09%), the REIT's largest tenant.
There are very issues with conflicts of interest that have to be considered.
Conversely, However, the 40-year track record of slow and steady dividend growth is an indication of what Universal Health Services is doing here, given the current landscape.
More attractive than it was, not for all, but smart for some The interesting thing here is that prior to the coronavirus pandemic, Universal Health Realty's dividend yield was a tiny 2.
Moreover, At that point, investors were way too optimistic the REIT given the tortoise- nature of the dividend, in today's market environment.
But, today, with the yield at 7 (an important development), in today's market environment. 4%, this healthcare stock is a lot more attractive.
Moreover, It won't be right for every dividend investor, given the management structure and that tortoise- dividend growth.
For dividend growth investors, JNJ or Becton, Dickinson will be more appriate.
However, if you are trying to maximize the income you generate from your portfolio today and you are looking for a healthcare investment, Universal Health Realty Trust could be perfect for your portfolio if you have $1,000 or $10,000 to invest, in this volatile climate.