I donât forecast any dividend cut at this point. The near-term reason for Welltower's cut is that it needs access to cash, plain and simple. A dividend cut occurs when a dividend-paying company either completely stops paying out dividends (usually a worst-case scenario) or reduces the amount it pays out. There's no easy way to deal with COVID-19 -- at least, not yet. Then there’s cash flow, which shows a similar disconnect. Welltower pays out 58.65% of its earnings out as a dividend. For example, a company might issue a stock dividend of 5%, â¦ Cumulative Growth of a $10,000 Investment in Stock Advisor, How Welltower's Dividend Cut Will Help It Grow @themotleyfool #stocks $WELL. The decision stings today, but it could be good over the longer term. From a cash flow perspective, things arenât any better. The decline in the yield has been exacerbated by some dividend cutting and suspensions, as well â¦ The stock is trading hands for a P/E ratio of 8.67, based on adjusted TTM EPS. Wells Fargo announced at the end of June that it planned to cut its dividend, breaking rank with all of Wall Streetâs other big banks, following the â¦ But the reverse takes place in the bad times, when weak performance detracts from results. See what's happening in the market right now with MarketBeat's real-time news feed. But it will also position the healthcare-focused landlord for faster growth once this rough patch is over. In these cases, a dividend cutâeven a rather drastic oneâmay not necessarily be a sign of trouble, or even a sign that selling the stock is your best course of action. A Rare Opportunity to Turn $1,000 into $481,800. Welltower pays an annual dividend of $2.44 per share, with a dividend yield of 3.67%. Enterprise Value $: 40.27 Bil . Learn more. All of them came with a stock value loss as well: Assuming that the COVID-19 issue is eventually solved in some way (a vaccine, herd immunity, or accepting that it is here to stay and adjusting to it), Welltower could end up with an extra $400 million or so a year that it can put to work buying or building new senior housing assets. The company generates roughly 70% of its net operating income from senior housing, spanning from well-living facilities to nursing homes. Goldman, Bank of America, Morgan Stanley, and Citigroup all said they will maintain their dividend. "On June 29 came word that the company would have to cut its dividend after coming up short in the Federal Reserve Board’s most recent stress test. Turning to specifics, we can expect a cut to affect all metrics related to the Wells Fargo dividend. Thatâs because I believe personal finance is very personal. However difficult COVID-19 is today, though, it doesn't change the long-term demographic trends this country faces. If you own it, the dividend cut is probably not a good enough reason to sell it. Energy sector dividend plays, bargain stock hunting and RioCan’s payout cut: What you need to know in investing this week S.R. Even with the dividend cut the stock is still a high yield play and despite many calls to end private prisons States are hard pressed for funds and will not be able to replace what Geo offers. The capital market expects a dividend dividend cut by the company. Moreover, roughly 20% of net operating income comes from senior facilities that it operates (it outsources the day-to-day work). This is a critical thing you need to understand moving forward. × Welcome to Dividend.com Please help us personalize your experience. This is the amount of cash that is available to the company to pay for dividends, capital expenditure, as well as lowering its debt burden. document.write('