There was a point in my investment life when I would sell any stock that cut its dividend, without question or a deep look at why the dividend was trimmed. I wound up selling some great companies at exactly the worst time. Ventas (NYSE: VTR) cut its dividend in 2020, and I've held onto it. Not only has the stock bounced back strongly, but I expect good things in the future because of the underlying fundamentals of the business.
I think most people would agree that 2020 was just a miserable year. It was particularly bad for real estate investment trusts (REITs) that owned senior housing, like Ventas. Move-outs were elevated, move-ins were weak, and occupancy fell sharply throughout the sector. For Ventas, which has a sizable senior housing operating portfolio (SHOP), it was even worse. Essentially it both owns and runs these assets, so their performance flows through to the top and bottom lines.
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Source Fool.com