3 Healthcare REITs Yielding Up To 7.1% To Buy 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 three that you could buy today.

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Healthpeak Properties, Inc.

Healthpeak Properties DOC is a leading owner and operator of outpatient medical centers in the United States. As of June 30, its portfolio consisted of 733 operating properties, including 579 outpatient medical centers and 120 labs, as well as an additional 25 properties in development or under redevelopment.

Healthpeak currently pays a quarterly dividend of $0.30 per share, which equates to an annualized dividend of $1.20 per share and gives its stock a yield of about 5.5% at this time.

In addition to boasting a high yield, Healthpeak is a reliable dividend payer. It has maintained its current quarterly dividend rate of $0.30 per share since February 2021, and its stable cash flow should allow it to continue to do so going forward.

Health Care Realty Trust Incorporated

Health care Realty Trust HR is a leading owner and operator of medical outpatient buildings primarily located around market-leading hospital campuses. As of June 30, its portfolio comprised 673 properties totaling approximately 40 million square feet across 35 states.

Health care Realty Trust currently pays a quarterly dividend of $0.31 per share, which equates to an annualized dividend of $1.24 per share and gives its stock a yield of about 7.1% at this time. 

Like Healthpeak Properties, Healthcare Realty Trust is a reliable dividend payer, maintaining its current quarterly dividend rate of $0.31 per share since February 2022. The company's stable cash flow and its management team's focus on accelerating growth and improving its dividend coverage should allow it to continue to do so for the foreseeable future.

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Alexandria Real Estate Equities, Inc.

Alexandria Real Estate Equities ARE owns and manages real estate leased to the life sciences industry in the United States. As of June 30, its portfolio comprised 408 properties containing approximately 42.1 million rentable square feet. 

Alexandria Real Estate Equities currently pays a quarterly dividend of $1.30 per share, which equates to an annualized dividend of $5.20 per share and gives its stock a yield of about 4.7% at the time of this writing.

What sets Alexandria Real Estate Equities apart from the other REITs discussed in this article is its impressive track record of dividend growth. It has raised its annual dividend payment for 13 consecutive years, and its 2.4% hike in June has it on pace for 2024 to mark the 14th consecutive year with an increase.

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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