There's no doubt about it, Ventas (NYSE: VTR) let its shareholders down with its third-quarter earnings report. The healthcare-focused real estate investment trust's (REIT) actual earnings results weren't bad, but management had made a big promise about 2020 from which it had to backtrack. Understandably, that upset investors.
However, it's important to look at this specific promise and compare the situation at Ventas to "broken promises" made by other companies. After you step back and do this analysis, you'll see that Ventas looks like it's still worth owning... and you'll also get a feeling for what shareholder-friendly companies do and don't do.
Before getting into the situation at Ventas, consider the dividend history of Kinder Morgan (NYSE: KMI). In 2016, the midstream oil and natural gas giant cut its dividend by 75%. Management intended to put the freed-up cash toward their capital investment plans -- and they picked that tactic because the company was highly leveraged relative to its peers and selling stock at that point in time wasn't a great option.
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Source: Motley Fool
(November 17, 2019 - 1:36 PM EST)
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