Is Welltower a Great Dividend Stock?
When it comes to diversified healthcare real estate investment trusts (REITs), Welltower (NYSE: WELL) is among the largest players in the space. And it has a history that's pretty impressive, too. But greatness is a heavy burden, and there's a difference between a great company and a great stock. Here's what you need to know about dividend stock Welltower before you jump aboard.
Welltower has one of the most diversified healthcare portfolios in the REIT sector. Roughly 63% of its net operating income (NOI) comes from senior housing. These are assets that provide limited assistance to largely healthy seniors. This is clearly the core of the portfolio, with 44% of NOI from properties it owns and operates (called senior housing operating portfolio, or SHOP in industry lingo, though technically it outsources the day to day operations to others) and about 19% from assets it leases out. About 22% of NOI is from outpatient medical facilities. A little under 7% is from medical systems (hospitals). And the rest comes from long-term/post acute care assets (nursing homes).
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