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LTC Properties (LTC) Maintains Monthly Dividend while Working Through Tenant Challenges

LTC Properties, Inc. (NYSE:LTC) is included among the 10 Monthly Dividend Stocks to Buy and Hold Forever.

LTC Properties, Inc. (NYSE:LTC) is a healthcare REIT. It focuses on senior housing and skilled nursing properties, using triple net leases, mortgage loans, and other income-generating structures. That model tends to produce steady cash flow, which supports its monthly dividend.

The COVID-19 pandemic created real pressure on the seniors housing segment and, in turn, on LTC’s tenants. Some operators struggled to meet rent obligations, and a few filed for bankruptcy. LTC’s balance sheet helped it get through that period. It managed to offset part of the lost income and continued paying its monthly dividend, even as some peers reduced theirs. Even so, the company has not raised its payout since 2016.

There are signs of longer-term support for the business. A study by Syracuse University projects that by 2030, the number of Americans aged 65 and older will reach 73 million. To benefit from that shift, LTC Properties, Inc. (NYSE:LTC) still needs to stabilize its tenant base and work with stronger operators. That alignment will matter if it wants to translate the demographic trend into consistent returns for shareholders. For now, investors are left with a yield of over to 6%.

While we acknowledge the risk and potential of LTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LTC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Dow Stocks to Invest In Now and 12 High Dividend Stocks Picked By Billionaire Ray Dalio

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