Best of the Best Monthly Dividend Stocks: LTC Properties Inc (LTC)

LTC’s dividend has grown steadily during the period and today LTC pays out $2.16 on an annual basis or 4.7%.  Readers should note that the 2016 annual dividend is estimated based on 1Q 2016.

During that same time, LTC has added to and upgraded its real estate holdings ensuring that growth in income, earnings, FFO, and dividend payments will continue. The chart below shows the real estate investments that LTC has made over the last 6 years and the first quarter of 2016.

Source:  LTC Properties, Inc.

I believe there is also a very compelling driver for LTC’s continued strong performance going forward. We baby boomers are getting older and there are a lot of us. On average, roughly 10,000 boomers enter  retirement every day. The leading edge of the boomer generation is just getting into their 70’s.  The wave of boomers will last for the next 35 years.

As we age, we are going to demand more medical services, more skilled nursing care, and more senior housing. This is exactly what LTC is positioned to deliver. To read in more detail about how health care equity REITs  will benefit from the wave of retiring boomers, see my previous articles “These REITs Will Profit”  and “Riding The Wave of Age Demographics“. I strongly believe LTC as well as other health care equity REITs will benefit from the wave of boomer retirements for many years to come.

LTC Properties Current Valuation

I already have a small investment in LTC Properties Inc (NYSE:LTC) and I want to accumulate more. Thanks to the Federal Reserve’s Open Market Committee (FOMC) minutes and the recent comments made by some of the members, the opportunity to accumulate more share of LTC may present itself shortly. The two charts below show LTC’s Price/FFO and current dividend yield compared to its peers.

Source:  Author