Friday, December 22, 2006

George W. Bush, Bill Clinton and Healthcare REITs have Something in Common

What do George W. Bush, Bill Clinton, Cher, Donald Trump, Sylvester Stallone and Dolly Parton all have in common? They all turned 60 this year. Plus they are all members of “the oldest of the baby boomers” club. A baby boomer is defined by the U.S. Census Bureau as the generation born between 1946 and 1964. Every day, 7,918 Americans turn 60 years old. The boomers are the largest segment of the U.S. population and their need for healthcare (for themselves and their parents) will increase considerably over the next several years. Because of this trend many investors are now looking at high yielding healthcare real estate investment trusts [REITs]. Several of these REITs generate fairly high dividend yields. The following is a list of ten Health REITs with a yield of over 5%.

Healthcare Realty (HR) 6.9%
Cogdell Spencer (CSA) 6.8%
Health Care REIT (HCN) 6.1%
Universal Health Realty Income Trust (UHT) 6.0%
National Health Investor (NHI) 5.8%
Omega Healthcare Investors (OHI) 5.8%
Senior Housing Properties (SNH) 5.7%
LTC Properties (LTC) 5.5%
National Health Realty (NHR) 5.5%
Nationwide Health Properties (NHP) 5.3%

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