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
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- Your Greatest Wealth Building Asset
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