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This is Why Ventas (VTR) is a Great Dividend Stock
VTRVentas(VTR) ZACKS·2025-04-08 16:50

Core Insights - The primary focus for income investors is generating consistent cash flow from liquid investments, which can come from various sources including dividends [1][2] Company Overview: Ventas (VTR) - Ventas is a Chicago-based real estate investment trust (REIT) in the seniors housing sector, with a year-to-date share price change of 8.95% [3] - The company currently pays a dividend of 0.48pershare,resultinginadividendyieldof2.990.48 per share, resulting in a dividend yield of 2.99%, which is lower than the industry average of 5.33% and the S&P 500's yield of 1.76% [3] - Ventas has increased its annualized dividend to 1.92, reflecting a 6.7% increase from the previous year, with an average annual increase of 0.37% over the last five years [4] Dividend and Earnings Growth - The payout ratio for Ventas is currently 56%, indicating that the company distributes 56% of its trailing 12-month earnings per share as dividends [4] - The Zacks Consensus Estimate for Ventas's earnings per share in 2025 is $3.44, which represents a year-over-year growth rate of 7.84% [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - While high-growth firms typically do not provide dividends, established companies like Ventas are viewed as strong dividend options [7] - Ventas is considered a compelling investment opportunity, currently holding a Zacks Rank of 3 (Hold) [7]