What's fascinating this is The S&P 500 index (SNPINDEX: ^GSPC) has a miserly dividend yield of just 1. On the other hand, In contrast, The average healthcare stock has a yield of just under 1.
But what if you could get yields from healthcare stocks that were three to nearly four times higher, considering recent developments.
Here are three healthcare landlords that have paid reliably and have huge yields, and you can get several s for less than $500 (this bears monitoring).
Moreover, Surviving the pandemic in one piece When the COVID-19 pandemic hit, nursing s and senior housing perties got slammed.
It makes sense; COVID spread easily in group settings and was particularly deadly for older adults. Occupancy levels fell, move-ins stalled, and move-outs (which include deaths) rose.
This tells us that was a brutal time for senior housing landlords, with some of the largest and most respected healthcare real estate investment trusts (REITs) cutting their dividends, including Ventas (NYSE: VTR) and Welltower (NYSE: WELL), in light of current trends.
VTR Dividend Per (Quarterly) data by YCharts However, not all senior housing REITs went the dividend-cut route. LTC perties (LTC -0, given the current landscape.
25%) and Omega Healthcare Investors (OHI 0. 26%) held their dividends steady. Both have worked with their tenants, including exiting troubled relationships and bringing on new operators.
Additionally, LTC perties has notably started to include senior housing operating assets (also known as SHOP) in its mix, which means it owns and operates the assets (quite telling), given current economic conditions.
Of course, each tenant has its own needs, so there were a lot of moving parts, and there's no one-size-fits-all description of what these REITs did.
However, the outcome was that they continued to pay their dividends just they had before the pandemic. Meanwhile, Image source: Getty Images.
Now that the world has learned to with COVID, these two REITs are set to benefit from serving the housing needs of the oldest people.
The demographic future is set to see the ranks of the oldest cohort rise materially in the years ahead, given current economic conditions.
These groups are the ones that need the most assistance with their day-to-day needs (an important development).
However, With exposure from nursing s and well-living, Omega and LTC are worth a close look for high-yield investors today, given the current landscape. The data indicates that ir yields are 6.
However, 4%, respectively, as I write this. Meanwhile, A steadily growing dividend Just holding the line during the pandemic might not be enough for some investors.
So, how a healthcare REIT that has increased its dividend annually for 40 consecutive years. Furthermore, That's exactly the record that Universal Health Realty Trust (UHT -1.
08%) has achieved to go along with its ultra-high 7, in this volatile climate. 1% dividend yield (fascinating analysis).
Un Omega and LTC perties, Universal Health Realty's portfolio is focused on medical office perties. There are two caveats here, however.
Moreover, The analysis reveals company's largest tenant is Universal Health Services (UHS -0, given the current landscape. Moreover, 12%), which also happens to be the company that manages the REIT.
On the other hand, So, it is a controlled entity, and investors would be right to wonder if the decisions being made the REIT are being made for the benefit of investors or for the benefit of the manager, in today's financial world.
However, given the reliable dividend growth, it seems investors are quite important here (this bears monitoring).
That said, dividend growth has historically averaged around 1, given the current landscape.
Nevertheless, That's not a particularly large number, which might dissuade dividend growth investors from buying the REIT.
But, given the lofty yield, if you are looking to generate as much income as possible today, Universal Health Realty's slow and steady growth might not bother you all that much (fascinating analysis), given the current landscape.
Keeping the checks flowing If there's one thing that a dividend investor absolutely hates to see, it is a dividend cut.
However, Despite terrible headwinds, LTC perties and Omega both avoided doing that, and now they look ready to benefit from an aging population.
Additionally, You can buy around 13 or so s of either one with $500, or some combination of the two.
Universal Health Realty's dividend grew right through the difficult pandemic period, albeit slowly, which many dividend investors will bably find even more appealing.
A $500 investment will net you around 12 s of Universal Health Realty Trust.