HealthCare REITs with Strong Dividend Growth

Healthcare REITs have been gaining a lot of attention in recent weeks. Many of these stocks have been upgraded by analysts due to the positive outlook they have on the sector. Healthcare REITs are generally companies that buy, develop and manage properties and facilities that provide healthcare services. These facilities can be long term care facilities or offer nursing and other health services.

Healthcare REITs dominate the list of Real Estate Investment Trusts that have maintained dividend growth over the last 5 – 10 years. Many of these trusts are well positioned to take advantage of the expected senior living demand the US will face as the baby boomer generation begins to retire. We found 5 REITS with at least 4 years of consecutive dividend growth and a dividend yield over 4%.

Health Care REIT, Inc. (HCN)

Health Care REIT has increased its dividend for 4 consecutive years and has a dividend yield of 5.1%. Their 5 year dividend growth rate is 2.4%. HCN tends to raise its dividend every other quarter and it has increased its dividend again in the first quarter of 2012. Health Care REIT’s properties include skilled nursing facilities, senior housing, inpatient and outpatient medical centers and medical office buildings.


HCP has increased its dividend for 19 consecutive years and had a dividend yield of 4.7%, well below their 5 year average of 6.1%. Their 5 year dividend growth rate is 2.4%. HCP develops and manages a diverse set of healthcare real estate. Its properties include senior housing, medical offices, life science, skilled nursing and hospitals.

Omega Healthcare Investors (OHI)

Omega Healthcare Investors has increased its dividend for 8 consecutive years and has a dividend yield of 7.3% and a strong 5 year dividend growth rate of 10%. OHI invests in income producing healthcare facilities. Most of its investments are made in long-term care facilities in the US. The company also provides leas and mortgage financing for skilled nursing facilities.

Senior Housing Properties (SNH)

Senior Housing Properties has increased their dividend for 10 consecutive years and has a dividend yield of 6.6%. Their 5 year dividend growth rate is 2.6%. Senior Housing Properties owns over 200 senior living properties located in the US. It also owns 2 rehab hospitals and 82 medical offices.

Universal Health Realty Income (UHT)

Universal Health Realty Income has increased its dividend for 20 years. It has a dividend yield of 6.2% and a 5 year dividend growth rate of just 1.4%. UHT invests in a wide range of healthcare facilities that include surgery centers, rehab hospitals, acute care hospitals and medical office buildings. UHT also invests in childcare centers and preschools.

Bonus Stock: LTC Properties, Inc. (LTC) only has 2 consecutive years of dividend increases but we wanted to mention it here anyway because it is also a healthcare REIT with solid dividend growth. LTC has a dividend yield of 5.3% but was downgraded earlier this month by Stifel Nicolaus over valuation concerns. LTC pays its monthly dividends.

2 replies
  1. Larry Wehner
    Larry Wehner says:

    Thanks for the heads up. I have been wanting to get into a health care stock with a fair return.

  2. Charles Bauguess
    Charles Bauguess says:

    Only one of them have a preferred stock. I am lookoing for a good preferred stock. Thanks. Charles.

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