In an ideal investment, you’ll have several overlapping investment themes come together. And that’s what I see today in Senior Housing Properties Trust (SNH), one of the biggest players in the senior housing segment with 372 properties spread across 38 states and Washington DC. Let me start with biggest and most obvious theme — the graying of America. The Baby Boomers, the largest generation in U.S. history, is entering retirement en masse, and as things stand now America lacks the senior housing inventory to accommodate them. Ten thousand Baby Boomers turn 65 every day, and over the next 15 years, the number of Americans over the age of 50 will swell to 132 million.
This means unprecedented demand for everything from active retirement communities with golf and tennis lessons to assisted living with full-time nurses. This massive shift in our demographics is fantastic news for landlords of senior housing developments such as SNH. Despite its name, Senior Housing is not a pure play on the senior housing market. 29% of SNH’s portfolio is invested in independent living facilities with another 21% in assisted living. Nursing homes and wellness centers make up about 3% of the portfolio each. And importantly, 97% of Senior Housing’s net operating income comes from private-pay properties; exposure to Medicare is minimal.
Source: InvestorPlace
Related Articles:
- Why Dividends Matter
- 6 Stocks Currently Trading Below their Fair Value
- The Perfect Dividend Stock
- Bonds Look Morbid When Compared To These Dividend Stocks
- My 5 Largest Dividend Stock Positions Have Double-Digit Lifetime Returns
Senior Housing Properties: A 7% Yielder Backed by the Graying of America
Posted by D4L | Tuesday, November 04, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.