CareTrust REIT (CTRE) DIvidends Date & History

Key Takeaways

• CareTrust REIT (CTRE) pays a quarterly dividend of $0.39 per share, equivalent to an annualized dividend of $1.56 and a forward dividend yield of approximately 3.7%.
• The company has raised its dividend every year since initiating payments in 2014, delivering a 5-year compound annual growth rate of roughly 6%.
• The most recent dividend increase of 16.4%—from $0.335 to $0.39 per quarter—was announced alongside first-quarter 2026 results, reflecting strong operational momentum.
• Based on normalized Funds From Operations (FFO), the payout ratio is approximately 81%, indicating a healthy margin of retained cash flow for reinvestment.
• With a net-debt-to-EBITDA ratio below 1.0x and 100% rent collection, the dividend is backed by solid operating fundamentals and a conservative balance sheet.

Dividend Overview

CTRE is a healthcare real estate investment trust (REIT) that owns and leases skilled nursing facilities, senior housing communities, and other healthcare-related properties across the United States and the United Kingdom. As a REIT, the company is required to distribute at least 90% of its taxable income to shareholders, making dividends a core part of its investor proposition. CareTrust currently pays a quarterly dividend of $0.39 per share, which annualizes to $1.56 and translates to a yield in the 3.5%–3.8% range, depending on share price. The dividend is paid in January, April, July, and October, following ex-dividend dates that typically fall on the last business day of each quarter. With a decade-long track record of consecutive annual increases, CareTrust fits the profile of a dividend growth stock within the healthcare REIT segment—offering a moderate current yield paired with consistent payout expansion.

Dividend History and Growth

CareTrust has paid uninterrupted quarterly dividends since its listing in 2014 and has increased its payout every calendar year since inception. The dividend started at approximately $0.50 per share annually in 2014 and has steadily climbed to the current $1.56 annual rate. Recent increases have been notably robust: the quarterly rate rose from $0.29 to $0.335 in early 2025—a 15.5% jump—and then to $0.39 in early 2026, representing another 16.4% year-over-year increase. Over the past five years, the dividend has compounded at an annual rate of roughly 6%, outpacing inflation and reflecting the REIT's ability to grow rental income through acquisitions and lease escalators. The consistency and scale of these increases position CTRE among the more reliable dividend growers in the healthcare REIT industry.

Dividend Sustainability and Payout Ratio

Dividend sustainability for REITs is best assessed using FFO and Funds Available for Distribution (FAD) rather than traditional net income. On this basis, CareTrust's payout profile appears well-managed. In the first quarter of 2026, the company reported a payout ratio of approximately 81% of normalized FFO and 81% of normalized FAD. These figures are comfortably within the range considered sustainable for equity REITs, leaving a meaningful cushion for reinvestment. The balance sheet provides additional support: as of Q1 2026, net debt to annualized normalized run-rate EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at just 0.6x, a low level that signals financial flexibility. The company also maintains a debt-to-equity ratio of approximately 0.35. Furthermore, CareTrust has consistently reported 100% collection of contractual rent and interest, underscoring the reliability of the cash flows that fund the dividend.

Dividend Compared to Industry Peers

Within the healthcare REIT sector, CareTrust's dividend yield sits in the middle of the pack. Larger peers such as WELL and VTR offer lower yields in the 1.2%–2.9% range, reflecting their size, diversification, and premium valuations. On the higher end, operators like OHI, SBRA, and LTC offer yields between 5% and 7%, often accompanied by higher payout ratios or more constrained growth. CareTrust's combination of a mid-range yield and an above-average dividend growth rate differentiates it from many peers. Among healthcare REITs with a focus on skilled nursing and senior housing, CTRE's track record of uninterrupted annual increases stands out, as several competitors have maintained flat dividends or cut payouts in prior years.

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Is This Stock Attractive for Dividend Investors?

CareTrust REIT may appeal most to dividend growth investors and long-term income investors who prioritize consistent payout increases over maximizing current yield. With a yield near 3.7%, the stock does not compete with the highest-yielding healthcare REITs, but its decade-long streak of annual dividend growth—including double-digit increases in 2025 and 2026—offers appeal for those focused on growing their income stream over time. The REIT's conservative leverage, strong rent collection record, and FFO-based payout ratio around 81% suggest that the dividend is unlikely to face near-term pressure. However, investors should be aware that the skilled nursing and senior housing sectors carry regulatory and operator-credit risks that can influence occupancy and rental income. For those comfortable with the healthcare real estate space, CTRE represents a balanced mix of current income, growth, and financial discipline. Income investors seeking maximum current yield may find higher-yielding alternatives elsewhere in the sector.

Disclaimer

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