This Near 4% Yielding REIT Is Down 10% In The Past Month

"Pullback Improves The Long-Term Setup But I'd Wait For A Better Entry"

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Current Price: $36.85

Dividend/Yield: $ 0.39/4.23%

CareTrust REIT (CTRE) has been one of my favorite healthcare REITs since I turned bullish on the company in 2023. However, the stock’s exceptional performance over the past several years eventually pushed the valuation to levels I considered difficult to justify.

After a recent pullback of nearly 5% over the past month, shares appear more attractive today than they did earlier this year. Even so, with CTRE still trading near 19x forward AFFO, I believe investors should remain patient and wait for a larger correction before initiating or adding to positions.

In this article, I discuss CareTrust REIT’s latest earnings, balance sheet strength, dividend growth, and why I’m maintaining a Hold rating despite the recent decline.