2 Healthcare REITs Yielding Up To 7.2% To Load Up On In August

Health care real estate investment trusts (REITs) are companies that own, operate, or finance properties in the health care sector such as hospitals, nursing facilities and senior housing. 

Health care REITs offer a unique blend of stability and growth potential, making them attractive to income investors. Like all REITs, health care REITs must distribute a large percentage of their taxable income to shareholders through dividends, often resulting in high yields.

With health care needs rising, health care REITs present a promising opportunity for those seeking consistent portfolio returns. Let's take a look at two that you could buy today.

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Omega Healthcare Investors, Inc.

As of June 30, Omega Healthcare Investors OHI owns and manages a portfolio of 900 properties, primarily skilled nursing and assisted living facilities, located across 42 U.S. states and the U.K. and containing approximately 86,383 beds.

Omega currently pays a quarterly dividend of $0.67 per share, equating to an annualized dividend of $2.68 per share, which gives its stock a yield of about 7.2% at the time of this writing.

Omega is a reliable dividend payer. It has maintained its current quarterly rate of $0.67 per share since October 2019, and its stable cash flow should allow it to continue to do so for the foreseeable future.

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Universal Health Realty Income Trust

Universal Health Realty Income Trust UHT owns and manages 76 properties across 21 states, including acute care hospitals, behavioral health care facilities, rehabilitation hospitals, subacute care facilities, surgery centers, child care centers and medical office buildings.

UHT currently pays a quarterly dividend of $0.73 per share, equating to an annualized dividend of $2.92 per share. At the time of this writing, this gives its stock a yield of about 6.9%.

In addition to boasting a high yield, UHT has the longest streak of annual dividend increases in the health care REIT industry. It has raised its annual dividend payment for 37 consecutive years, and its 0.7% hike in June puts it on track to mark the 38th consecutive year with an increase in 2024.

Better Yields Than Some REITs?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through REITs.

Arrived Homes, the Jeff Bezos-backed investment platform has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

As long-term rates go down and short-term rates stay high, there’s a unique chance to invest in fix & flip loans before yields drop. Check out Benzinga's favorite high-yield offerings. 

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