Ticker: CHCT, Buy below $50.
Community Healthcare Trust is a REIT that focuses on real-estate properties relating to health care.
Why I Would Buy
- Insider – Strong insider holding and buying.
- Strong Alignment of Management Interests – Bulk of management and Directors compensation is in restricted stock.
- Uncorrelated Businesses: Healthcare REIT — benefits from a recession resistant, long term trend.
- Dividend – generous 3.5%+ yield
What Could Go Wrong
- Coronavirus related Damage – Pandemic has hit healthcare industry disproportionately, as all non-essential procedures are being deferred.
- Dilution – Aggressive issuance of equity to fund expansion.
Disclosure: I am long CHCT, please read additional disclosures here before taking any action based on this post.