Published on October 21st, 2025 by Felix Martinez
High-yield stocks pay out dividends that are significantly higher than the market average. For example, the S&P 500’s current yield is only ~1.2%.
High-yield stocks can be particularly helpful in shoring up income after retirement. A $120,000 investment in stocks with an average dividend yield of 5% creates an average of $500 a month in dividends.
Community Healthcare Trust Inc. is part of our ‘High Dividend 50’ series, which covers the 50 highest-yielding stocks in the Sure Analysis Research Database.
We have created a spreadsheet of stocks (and closely related REITs, MLPs, etc.) with dividend yields of 5% or more.
You can download your free full list of all securities with 5%+ yields (along with important financial metrics such as dividend yield and payout ratio) by clicking on the link below:
Next on our list of high-dividend stocks to review is Community Healthcare Trust Inc.
Business Overview
Community Healthcare Trust (NYSE: CHCT) is a real estate investment trust (REIT) that owns and manages income-producing properties connected to the U.S. healthcare sector. Its portfolio includes physician offices, specialty and behavioral health centers, inpatient rehabilitation facilities, and medical office buildings located in targeted sub-markets across the country.
The trust’s portfolio consists of 200 properties in 36 states, totaling approximately 4.5 million square feet. Headquartered in Franklin, Tennessee, Community Healthcare Trust has a market capitalization of about $375 million.
Source: Investor Relations
The company also recorded $5.9 million in severance and transition expenses following the May 2025 termination of its Executive Vice President, which reduced FFO by $0.22 per share. During the quarter, CHCT recognized a $0.2 million gain from the sale of a property in Ohio and a $1.3 million gain from the reclassification of a lease. It also finalized the purchase of a $9.7 million behavioral health facility, generating an expected 9.5% return.
In July, CHCT acquired a $26.5 million rehabilitation facility in Florida, fully leased until 2040 with an expected 9.4% return. The company also has six properties under contract, totaling $146 million, with an expected closing date between 2025 and 2027. A quarterly dividend of $0.4725 per share was declared, payable August 22, 2025. As of June 30, 2025, CHCT owned 200 healthcare properties across 36 states valued at approximately $1.2 billion.
Source: Investor Relations
Growth Prospects
Community Healthcare Trust became a publicly traded company in 2016, providing eight years of complete financial data for analysis. From 2019 to 2024, the trust achieved an average annual growth rate of 6% in funds from operations (FFO), demonstrating steady performance even during the COVID-19 pandemic, when adjusted funds from operations (AFFO) continued to rise.
Looking ahead, CHCT is expected to grow AFFO per share by approximately 5% annually beyond 2025. The trust plans to expand its portfolio by acquiring non-urban healthcare properties, which typically offer stable revenue and long-term cash flow potential. This strategy helps CHCT avoid intense competition from larger REITs that focus on urban markets.
Most of the trust’s acquisitions are individual properties valued between $5 million and $30 million. Healthcare real estate generally provides more consistent rents and valuations than other sectors, supported by strong demographic trends and the growing demand for medical services across all economic conditions.
Competitive Advantages & Recession Performance
Dividend Analysis
Community Healthcare Trust has a history of providing reliable dividends, supported by its stable healthcare-focused portfolio and predictable cash flows. As of mid-2025, the trust pays a quarterly dividend of $0.4725 per share, reflecting a commitment to returning capital to shareholders.
The dividend is underpinned by the trust’s disciplined acquisition strategy and long-term leases with healthcare tenants, which generate a consistent income stream. While dividend growth may be moderate, it is expected to keep pace with AFFO growth, offering investors a steady income stream alongside potential portfolio appreciation.
The company currently pays a dividend of 13.5%. However, the dividend payout ratio is 102% to this year’s expected AFFO of $1.85. Thus, the dividend is at risk of a cut if AFFO does not continue to grow.
Source: Investor Relations
Final Thoughts
Community Healthcare Trust offers a compelling investment profile for income-focused investors seeking exposure to the healthcare real estate sector. Its strategic focus on non-urban properties, stable tenant base, and disciplined acquisition strategy support consistent cash flows and long-term growth in AFFO.
While the trust faces typical REIT risks, including transaction timing and market fluctuations, its resilient performance during economic downturns and reliable dividend payments make it a solid choice for investors seeking both income and stability in their portfolios. However, at the current price, we have a hold rating for the stock.
High-Yield Individual Security Research
- 20 Highest Yielding Monthly Dividend Stocks
- 10 Super High Dividend REITs
- 5 Highest Yielding Royalty Trusts
Other Sure Dividend Resources
- Dividend Kings: 50+ years of rising dividends
- Dividend Champions: 25+ years of rising dividends
- Dividend Aristocrats: 25+ years of rising dividends and in the S&P 500
- Dividend Achievers: 10+ years of rising dividends and in the NASDAQ
- High Dividend Stocks: 5%+ dividend yields
- Monthly Dividend Stocks: Individual securities that pay out every month
- MLPs: List of MLPs and more
- REITs: List of REITs and more
- BDCs: List of BDCs and more