Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why American Realty Capital Healthcare Trust, Inc. Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of American Realty Capital Healthcare Trust, (NASDAQ: HCT  ) (or ARC) are trading about 10% higher today after news broke this morning that the giant real-estate investment trust (REIT) Ventas (NYSE: VTR  ) would purchase ARC for $2.6 billion in cash and stock.

So what: Ventas made an offer of $11.33 per share of ARC, and ARC shareholders can also elect to swap their shares for 0.1688 shares of Ventas. The deal will only pay out 10% cash at most, with the rest being swapped shares -- at current prices, ARC shareholders will get roughly $10.97 worth of Ventas shares, as the REIT lost nearly 3% of its value on the news. That's still a tiny premium over ARC's current share price of $10.92, but it's nothing to bother arbitraging at the moment.

Now what: ARC has been publicly traded for less than three months now, so it's not as though investors had much time to get used to it as a long-term holding. However, swapping those shares for Ventas shares seems like a losing proposition right now -- Ventas offers a lower dividend yield than ARC and a weak past-year performance, although its five-year chart shows a solid 160% gain with dividends reinvested. You may want to consider taking your gains and finding another high-yielder instead of sticking with Ventas after the deal concludes.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2979898, ~/Articles/ArticleHandler.aspx, 9/1/2015 8:18:12 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Alex Planes

Alex Planes specializes in the deep analysis of tech, energy, and retail companies, with a particular focus on the ways new or proposed technologies can (and will) shape the future. He is also a dedicated student of financial and business history, often drawing on major events from the past to help readers better understand what's happening today and what might happen tomorrow.

Connect with Alex on LinkedIn or Twitter for more news and insight:

View Alex Planes's profile on LinkedIn

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
HCT $0.00 Down +0.00 +0.00%
VTR $55.02 Down -1.67 -2.95%
Ventas, Inc. CAPS Rating: ****