July 15, 2026 a 02:46 am

WELL: Dividend Analysis - Welltower Inc.

📊 Overview

Welltower Inc. operates within the healthcare real estate sector, offering a dividend yield of 1.34%. With a current dividend per share of $2.82, the company has a historical dividend distribution spanning 42 years.

Metric	Value
Sector	Healthcare Real Estate
Dividend Yield	1.34%
Current Dividend per Share	$2.82
Dividend History	42 years
Last Cut or Suspension	None

📈 Dividend History

The historical performance of dividends is crucial as it highlights Welltower’s reliability in rewarding shareholders. It’s a testament to their commitment even through financial challenges.

Year	Dividend per Share
2026	$1.48
2025	$2.82
2024	$2.56
2023	$2.44
2022	$2.44

🔍 Dividend Growth

Investors consider dividend growth as a critical factor for long-term investment, marking potential increases in revenue and profitability. Welltower’s growth over the past five years indicates moderate but reliable increases.

Time	Growth
3 years	4.94%
5 years	0.87%

The average dividend growth is 0.87% over 5 years. This shows moderate but steady dividend growth.

⚠️ Payout Ratio

Understanding the payout ratio is key as it reflects the company's potential to sustain dividend payments. High ratios can hint at financial strain or limited growth prospects.

Key Figure	Ratio
EPS-based	140.27%
Free cash flow-based	78.34%

A 140.27% EPS payout ratio suggests dividends may not be sustainable through earnings alone, while a 78.34% FCF payout ratio reflects a better but still elevated level.

💧 Cashflow & Capital Efficiency

Evaluating a company’s cash flow and capital efficiency is pivotal for determining its capability to maintain and grow dividends, reinvest, and expand its operations.

Year	2025	2024	2023
Free Cash Flow Yield	2.31%	2.89%	3.34%
Earnings Yield	0.76%	1.25%	0.73%
CAPEX to Operating Cash Flow	1.17%	2.58%	3.17%
Stock-based Compensation to Revenue	14.59%	0.97%	0.57%
Free Cash Flow / Operating Cash Flow Ratio	98.83%	97.42%	96.83%

The cash flow figures present a positive outlook for dividend sustainability given the operating cash flow coverage ratio, though capital expenditures remain a consideration.

📉 Balance Sheet & Leverage Analysis

A strong balance sheet and leverage levels offer insights into financial health, assuring investors of a company's ability to meet obligations and sustain operations.

Year	2025	2024	2023
Debt-to-Equity	0.51	0.52	0.63
Debt-to-Assets	0.32	0.33	0.37
Debt-to-Capital	0.34	0.34	0.39
Net Debt to EBITDA	7.08	4.77	5.88
Current Ratio	5.34	5.28	4.51
Quick Ratio	5.34	5.28	4.51
Financial Leverage	1.60	1.60	1.73

Despite moderate leverage ratios, Welltower's balance sheet shows a capacity to handle debt, supported by adequate liquidity metrics.

✅ Fundamental Strength & Profitability

Strong fundamental and profitability metrics indicate the company’s efficiency in using its resources and generating profits, which is crucial for sustaining dividend growth.

Year	2025	2024	2023
Return on Equity	2.22%	2.98%	1.34%
Return on Assets	1.39%	1.86%	0.77%
Margins: Net	8.78%	12.12%	5.25%
Margins: EBIT	1.61%	13.99%	14.79%
Margins: EBITDA	21.66%	35.38%	37.06%
Margins: Gross	39.18%	38.50%	39.06%
R&D to Revenue	0%	0%	0%

Welltower showcases a stable profitability profile with efficient management returns, though their low R&D investment may hinder innovation.

📊 Price Development

🗣️ Dividend Scoring System

Criteria	Score	Representation
Dividend Yield	2
Dividend Stability	4
Dividend Growth	3
Payout Ratio	2
Financial Stability	4
Dividend Continuity	5
Cashflow Coverage	3
Balance Sheet Quality	4

💼 Rating

Welltower Inc. maintains its status as a robust investment in the healthcare real estate industry. However, potential investors should consider the high payout rates and modest growth. Recommended for conservative portfolios prioritizing income.