Dividend Champions List: Top 15

4. Universal Health Realty Income Trust (NYSE:UHT)

Dividend Yield as of September 24: 6.28%

Universal Health Realty Income Trust (NYSE:UHT) ranks fourth on our dividend champions list. The American real estate investment trust company mainly invests in healthcare and human service-related facilities. It reported strong earnings in the first six months of the year. The company’s FFO for the period came in at $24.8 million, up from $22 million in the same period last year. The company’s net income of $10.6 million also showed a growth from $7.9 million on a YoY basis. The increase was primarily due to the healthcare sector, which presents appealing investment opportunities because of its countercyclical nature and its ties to innovation and research. The stock has surged by over 4.5% since the start of 2024 and its 12-month returns came in at over 13%.

Universal Health Realty Income Trust (NYSE:UHT) had a struggling start to the year because of high interest rates. Artisan Partners also highlighted this in its Q1 2024 investor letter. Here is what the firm has to say:

“Our bottom contributors were Cable One, Philips and Universal Health Realty Income Trust (NYSE:UHT). Universal Realty Income Trust (UHT) is a health care REIT (real estate investment trust) specializing in health care facilities, including acute care hospitals, behavioral health centers and medical office buildings. Our initial purchase was in June 2023. Like other high income producing stocks, UHT has been out of favor given higher interest rates. Besides the stock selling at low levels relative to its historical valuation and other REITs, we liked UHT’s track record of execution, low leverage, reduced cyclicality and consistent annual dividend growth. It currently yields nearly 8%. Recent results have been strong, with revenue growth up over 5% driven by annual lease price escalators, a better mix of assets, increased occupancy and M&A. However, UHT was down in Q1 along with the broader real estate sector as interest-rate sensitive areas badly lagged the rest of the market.”

That said, the company’s dividend payments have remained unaffected by high interest rates and other macroeconomic conditions over the years. On September 4, the company declared a quarterly dividend of $0.73 per share, which fell in line with its previous dividend. Overall, it has been growing its payouts for 40 consecutive years. The stock has a dividend yield of 6.28%, as of September 24.

The number of hedge funds tracked by Insider Monkey owning stakes in Universal Health Realty Income Trust (NYSE:UHT) grew to 12 in Q2 2024, from 8 in the previous quarter. The total value of these stakes is over $17.3 million.