We all love high-yield stocks. But the reality is that not all high-dividend stocks on the market are worth investing your hard-earned money in. There is one group of companies that is known for providing reliable income to dividend investors: real estate investment trusts (REITs). So long as they distribute at least 90% of their earnings to shareholders, REITs are exempt from corporate income taxes. But not all REITs are the same. For instance, retail REITs and office REITs could see their financials deteriorate when a recession hits and business slows down.
One type of REIT, however, has proven to be mostly resilient: healthcare REITs. The idea is that whether the economy is booming or not, those who need long-term care will seek to get it. That is, the demand for healthcare REITs could be relatively inelastic to economic cycles. That’s one of the reasons why I believe Welltower Inc (NYSE:HCN) stock could be a great addition to a dividend investor’s portfolio. Welltower is a real estate investment trust that invests in senior housing operators, post-acute care providers, and health systems. The company was founded in 1970 and is headquartered in Toledo, Ohio. Welltower now owns more than 1,400 properties in major, high-growth markets in the U.S., Canada, and the U.K.
Source: Income Investor
Related Articles:
- 7 Dividend Stocks With A Low Payout Ratio
- 5 Dividend Stocks Beating the S&P With Positive Returns In Excess of 50% YTD
- Income Annuities vs. Dividend Stocks
- 8 Select High-Yield S&P 500 Dividend Stocks
- Your Greatest Wealth Building Asset
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
For long-term performance, investors should consider pivoting their portfolios toward stocks that deliver high and growing dividend payouts,...
-
Dividend investors often get stuck with popular names in their portfolio, perhaps because these stocks are so often talked about that there&...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Talk to the average financial advisor, and they’ll say there’s no way to earn a safe 12% yield on your investment these days. After all, ban...
-
Any company that can double its dividend over a five-year stretch is delivering rapid payout growth. To reach that target, the company would...
-
Dividend payers have long had a reputation as stodgy companies that can pay a reliable income but whose stocks don't move too fast. Here...
-
By any measure the stock market is overbought. With yields still at historic lows despite the increases in the federal funds rate, and the p...
-
As regular readers know, cash cows constitute mature businesses. Because they have little in the way of growth prospects, these firms pay ou...
-
This company has great opportunities in their preferred shares for yield hunters. It recently dropped from a buy to a hold. However, on the ...
0 comments
Post a Comment
Post a Comment