Top 4 Healthcare REITs Turning Care Into Big Investor Payouts

Key Points

• Healthcare REITs combine essential services with higher dividends, being one of the only classifications of companies required to pay out a regular dividend to investors. 
• Investors looking for exposure to senior housing and skilled nursing facilities may want to consider stocks like WELL and LTC. 
• Those looking for more diverse healthcare real estate holdings may want to consider options like DOC and OHI, which spread services across multiple sectors of healthcare needs. 

Healthcare is an industry that’s constantly in demand, making it an investor favorite when choosing corporate shares to hold in the long term. Past data has found that healthcare stocks also tend to weather inflation better than others, beating inflation about 50% of the time during volatile periods.

Investors looking to bolster their portfolios while mitigating the effects of inflation may want to consider investing in a healthcare REIT. These stocks are the only type required to pay a dividend to investors, making them valuable income-generating assets. These four healthcare REITs combine essential services with solid dividend payments. 

Welltower Offers Senior Housing Investment Access 

An aging population means that senior housing and care services are likely to be in more demand in the coming years. 

Welltower Inc. NYSE: WELL is a senior healthcare REIT expansive enough to be included in the S&P 500, with a market capitalization of more than $96 billion.

It also offers a solid 1.78% dividend yield, which can further bolster its value as a long-term hold. 

Analysts agree that WELL currently deserves a Buy rating, but there is speculation that the stock may be a bit overvalued.

Experts predict a 6.89% downside in the next year. This prediction comes in spite of recent earnings data, which beat expert estimates by more than $0.70 per share. 

Healthpeak Brings the Heat With a 6% Dividend Yield

After a recent merge with Physicians Realty Trust, Healthpeak Properties NYSE: DOC is attracting investor interest with diversified healthcare facilities and a strong dividend.

Another S&P 500 inclusion, Healthpeak diversifies its healthcare facility holdings beyond senior housing to include laboratory and outpatient medical care real estate. 

What’s most impressive about Healthpeak is its 6.10% dividend yield, supported by a 34% annualized three-year growth.

Analysts give this stock a Moderate Buy rating, with analysts predicting a 20% upside in the next year.

While Healthpeak has struggled in recent months in terms of share price, shares are up 76% over the past year, which can make now the right time to buy. 

Omega Healthcare Investors Supports International Healthcare Real Estate 

Omega Healthcare Investors NYSE: OHI is a unique offering among healthcare real estate management companies because it supports facilities outside of the United States.

It currently has a total of more than $10 billion in property under management, including more than 1,000 facilities spread across both the United States and the United Kingdom. This equals more than 92,000 beds between 42 states and two countries. 

OHI is another strong dividend contender, with a dividend yield of 7.29%.

Analysts give this healthcare REIT a Moderate Buy rating, with a 13.38% potential upside from its current price of about $37 per share.

Unlike most other REITs on our list, Omega Healthcare also shows a competitive P/E ratio of 23.71, which could indicate that shares are undervalued by the current market. 

LTC Properties Maintains a Solid Buy Recommendation

LTC Properties NYSE: LTC is a large-cap healthcare REIT that divides its holdings between senior housing and skilled nursing properties.

Unlike other REITs, LTC engages in more than just property management; it supports its endeavors with sale-leasebacks, mortgage financing, and construction financing.

LTC is another healthcare REIT with a lower-than-average P/E ratio of 14.61, which may show that rising earnings are not translating to a higher share price.

The company posted solid earnings on February 24th, beating consensus EPS estimates by $0.07 per share. Analysts give LTC a Buy rating and anticipate a one-year upside of 13.87%.