Older couple with healthcare worker

Ventas is one of the largest and most diversified healthcare real estate investment trusts in the United States and has enjoyed dividend growth for nine straight years.

The COVID-19 pandemic, however, threatens to snap the Chicago-based REIT’s streak, according to an analysis by The Motley Fool. The senior housing sector, which has been hard hit by the coronavirus, accounts for almost 70% of Ventas’ net operating income. Investors should anticipate future dividend cuts as a result, the author noted.

Last month, Ventas drew $2.75 billion from its revolving line of credit and withdrew its 2020 guidance. Despite these moves to increase liquidity, “if the COVID-19 pandemic has a lingering impact on the senior housing sector, that won’t be enough to stave off a dividend cut,” the analysis said.