Month-to-month Dividend Inventory In Focus: Healthpeak Properties – Certain Dividend

Printed on August twenty first, 2025 by Bob Ciura

Month-to-month dividend shares have on the spot attraction for a lot of earnings traders. Shares that pay their dividends every month supply extra frequent payouts than conventional quarterly or semi-annual dividend payers.

Because of this, we created a full checklist of over 80 month-to-month dividend shares.

You’ll be able to obtain our full Excel spreadsheet of all month-to-month dividend shares (together with metrics that matter like dividend yields and payout ratios) by clicking on the hyperlink beneath:

Healthpeak Properties (DOC) switched to a month-to-month dividend payout schedule in April 2025. This probably makes the inventory extra enticing for earnings traders in search of extra frequent dividend payouts.

This text will analyze Healthpeak Properties in larger element.

Enterprise Overview

Healthpeak Properties is the biggest healthcare REIT within the U.S., with 774 properties. It was the primary healthcare REIT that was included within the S&P 500. The 37-year outdated REIT invests in life science amenities, senior homes, and medical workplaces, with 97% of its portfolio based mostly on private-pay sources. It has a market capitalization of $12 billion.

Healthpeak Properties posted declining FFO for six consecutive years, till 2022. Nevertheless, Healthpeak Properties has offered a number of belongings and has used the proceeds to cut back its debt. Consequently, the REIT has acquired credit standing upgrades from S&P and Fitch (to BBB+) in addition to Moody’s (to Baa1).

Supply: Investor Presentation

On July twenty fourth 2025, the REIT reported second-quarter monetary outcomes. Quarterly income of $694.35 million was in-line with analyst estimates, and represented a year-over-year decline of 0.2%. Adjusted funds-from-operation (FFO) was $0.46 per share, up 2.2% from the identical quarter final yr. Adjusted FFO-per-share was additionally in-line with estimates. Similar-store money internet working earnings progress was 3.5% for the second quarter.

Funding exercise for the quarter included two new growth agreements with a mixed projected value of $148 million to assist Northside Hospital’s continued outpatient growth within the Atlanta market. Healthpeak Properties additionally offered one outpatient medical land parcel in June 2025 and two outpatient medical buildings in July 2025 for mixed proceeds of roughly $35 million.

For 2025, Healthpeak Properties confirmed its forecast for adjusted diluted FFO-per-share to be in a variety of $1.81 to $1.87. As well as, same-store money (Adjusted) NOI progress is anticipated to be 3.0% to 4.0% for the total yr.

Development Prospects

Healthpeak Properties advantages from favorable secular traits. Because the child boomer era ages and the typical life expectancy is on the rise, the senior inhabitants of the U.S. is anticipated to develop considerably within the upcoming years. The 80+ age group is anticipated to develop by about 5% per yr on common till 2030.

As well as, this age group has immense spending energy. Thanks to those traits, healthcare spending within the U.S. is anticipated to develop by about 5% per yr on common till 2030.

Though Healthpeak Properties posted declining FFO for six consecutive years, till 2022, and the restructuring course of will preserve burdening the REIT within the close to future, many of the harm has already been performed. We additionally count on the belief to enter a sustainable progress trajectory.

However, because of the hefty issuance of latest shares for the above merger and excessive curiosity expense amid excessive rates of interest, we count on 3% annual progress of FFO per share over the following 5 years.

Dividend & Valuation Evaluation

The efficiency of Healthpeak Properties has been poor within the final 9 years and the REIT reduce its dividend by -19% in 2021, because of the impacts of the coronavirus pandemic. As this was the second dividend reduce within the final decade, it’s evident that the REIT is weak to downturns.

As well as, curiosity expense has elevated 85% since 2021 resulting from excessive rates of interest and the merger.

Then again, we word that the payout ratio is standing at an almost 10-year low whereas the REIT doesn’t have any debt maturities this yr.

Supply: Investor Presentation

DOC has a 2025 anticipated dividend payout ratio of 66%, based mostly on the midpoint of the REIT’s adjusted FFO-per-share steerage for 2025. This means a sustainable dividend payout backed by ample FFO.

We additionally view the REIT as undervalued. Based mostly on anticipated adjusted FFO-per-share of $1.84 for 2025, shares of DOC at the moment commerce for a price-to-FFO ratio of 9.3. That is considerably beneath the 10-year common P/FFO ratio of 15.1, which we view as truthful worth.

If the valuation a number of have been to develop to fifteen.1, it could increase annual shareholder returns by 10.2% per yr over the following 5 years. This means the inventory is considerably undervalued.

Including in 3% anticipated FFO-per-share progress per yr, in addition to the 7.1% present dividend yield, complete returns may exceed 20% per yr for DOC.

Closing Ideas

Healthpeak Properties is a comparatively new month-to-month dividend inventory, having began paying its dividend on a month-to-month foundation in April 2025.

The REIT has recovered from the assorted challenges confronted in the course of the pandemic, and will supply excessive common annual returns over the following 5 years, because of progress of FFO per share, its 7.1% dividend yield, and a big growth of the valuation a number of. Usually, we might charge such a excessive degree of anticipated returns as a purchase.

However, because of the unstable efficiency document and the excessive debt load of the REIT, we charge it as a maintain for affected person, risk-tolerant traders who can endure prolonged intervals of inventory worth stress.

Extra Studying

Don’t miss the assets beneath for extra month-to-month dividend inventory investing analysis.

And see the assets beneath for extra compelling funding concepts for dividend progress shares and/or high-yield funding securities.