SBRA - CareTrust REIT: A Growing REIT That Deserves A Spot In Your Portfolio
2024-06-28 12:30:11 ET
Summary
- CareTrust REIT is a strong addition to a portfolio for income generation and growth potential.
- The company has shown impressive revenue growth and acquisitions, but flat earnings. But earnings are projected to grow at 7.2% going forward.
- With a strong balance sheet and growth strategy, CareTrust REIT is positioned for further growth and potential upside in share price.
- I have a price target of $29. And anticipate CTRE will reward shareholders with strong upside once interest rates are cut in the near future.
- Despite strong acquisitions and revenue growth, flat FFO growth has resulted in an 85% payout ratio. Although safe currently, higher than I prefer for my REIT holdings. However, I suspect this to decline as earnings post strong growth moving forward.
Introduction
If you're a dividend investor or someone highly focused on income generation, then REITs deserve a spot in your portfolio. But like anything, all REITs are not created equal. When selecting companies for income generation, I think investors should have a good mix of growth & income stocks. ...
CareTrust REIT: A Growing REIT That Deserves A Spot In Your Portfolio