Community Healthcare Trust Stock Thumping S&P 500 in 2026
If you’re an income investors, real estate investment trusts, or REITs, have to be on your radar. That’s because they legally have to distribute at least 90% of their taxable income to shareholders in the form of dividends. This can result in some of the most reliable, high yield dividends on Wall Street.
Keep in mind, REITs have to borrow a lot of money to grow their operations. And high interest rates make borrowing and servicing debt more costly. On the plus side, interest rates have come down and Kevin Warsh, the new incoming Federal Reserve chair will be under pressure to lower interest rates further and more quickly.
That would, of course, be good for capital intensive sectors like REITs. One great REIT with a growing dividend payout is Community Healthcare Trust Inc (NYSE:CHCT).
About Community Healthcare Trust Inc.
Community Healthcare Trust is a healthcare REIT that owns and acquires real estate property that is leased to hospital, doctors, healthcare systems, or other healthcare service providers. (Source: “Portfolio Overview,” Community Healthcare Trust Inc, last accessed August May 27, 2026.)
The company’s $1.2 billion portfolio consists of 198 properties across 36 states, covering 4.5 million square feet (more than 78 NFL football fields). Its biggest holdings are in Florida, which accounts for 14.4% of its portfolio, followed by Texas (14.1%), Ohio (9.5%), Illinois (9.4%), and Pennsylvania (5.8%).
The properties have an occupancy rate of roughly 90%, with lease expirations ranging from 2026 through 2045. No single tenant accounts for more than 7.1% of total annualized rent. No single tenant accounting for more than 7.1% of annualized rent is good because some tenants struggled to pay their rent during the pandemic. And that can weigh on earnings.
Net Income More Than Doubles
In the first quarter ended March 31, 2026, Community Healthcare announced that revenue inched up to $31.52 million. Net earnings increased climbed 60% to $2.5 million, or $0.07 per share. (Source: “Community Healthcare Trust Announces Results for the Three Months Ended March 31, 2026,” Community Healthcare Trust Incorporated, May 5, 2026.)
Funds from operations (FFO), which is a figure used by REITs to describe cash flow from operations, were $0.49 per share, up from $0.47 pe share in the same prior year period. Adjusted FFO totalled $0.56, up from $0.55 per share in the first quarter of 2025.
During the quarter the company:
- Acquired an inpatient rehabilitation facility in Florida for approximately $28.5 million. The property was 100.0% leased to a tenant with a lease expiration in 2044 and an expected return of approximately 9.3%.
- Sold one property and received net proceeds of approximately $5.2 million.
- Has four properties under definitive purchase agreements, to be acquired after completion and occupancy, for an aggregate expected purchase price of approximately $99.0 million. It expects to close on these properties throughout 2026 and 2027.
Has Increased Quarterly Dividend for 41Consecutive Quarters
Community Healthcare legally has to pay a dividend, so that you’re on the receiving end of a regular quarterly payout isn’t earth shattering. What is great though is that the company has increased its payout every quarter since its 2015 inception. (Source: “Stock and Dividend Information,” Community Healthcare Trust Inc, last accessed May 27, 2026.)
Even when the company’s stock was decimated during the 2020 health crisis it gave its shareholders a raise. And has done so every quarter since then. Most recently, it declared a quarterly dividend of $0.48 per share, up from $0.4775 per share in the fourth quarter of 2025 and $0.47 per share in the same prior year period.
The current annual dividend distribution works out to $1.91 per share, or 10.85% on an annual basis.
CHCT Stock Beating S&P 500 in 2026
It’s fair to say that healthcare REITs did not perform well during the 2020 health crisis. Healthcare facilities were forced to deal with lower occupancy rates and higher costs associated with evolving protocols to limit the spread of COVID-19.
It’s taken a long time for investors to feel confident about healthcare REITs. Community Healthcare Trust stock hit a record low of $12.11 in October 2025, it has been climbing since then. On May 27 it hit a 52 week high of $17.88. This was actually its highest trading range since July 2024.
CHCT stock is currently trading up:
- 18% over the last six months
- 14% year to date
- 21% on an annual basis
More gains could be in the cards with Wall Steet analyst’s calling for CHCT stock to hit a high of $20 per share over the coming quarters.
Chart courtesy of StockCharts.com
The Lowdown on Community Healthcare Trust, Inc
Community Healthcare Trust Inc is a REIT with a diversified portfolio of healthcare properties across 36 states. It’s been reporting solid financial results, with first quarter earnings more than doubling to $0.07 per share, FFO climbing to $0.49 per share, and AFFO growing to $0.56 per share.
This helps support its reliable quarterly dividend, which has increased every quarter since its 2015 inception.
It’s the strong balance sheet, diversified portfolio, and reliably growing dividend have attracted some of the biggest investors on Wall Street. Currently 244 institutions account for 81.86% of all outstanding shares. Some of the top holders include Blackrock Inc., Vanguard Portfolio Management, and Mirae Asset Global ETFs Holdings Ltd. (Source: “Holders,” Yahoo! Finance, last accessed May 27, 2026.)