Question: Does anybody here know a lot about health care REITs?
For the first time I invested in a health care REIT a few months ago, namely Welltower (HCN), and although my cost basis took a little hit, the dividends are high and the company has a good record over the past 15 years. Still, I’m wondering if I could have made a better buy and I’m looking for another health care REIT. I’m interested in this type of REIT specifically because people are living longer and paying big bucks for their care.
Hoda Mehr: I generally think evaluating a REIT is similar to any company. Are they operating well? Is the market growing? Etc. The only thing is that you would get more money in the form of dividends because by legal structure they are forced to share their returns with shareholders. Which ones you are looking at? Maybe we can do the research together?
James MacThorton: So far I’ve just looked at Welltower and a few others that were mentioned favorably in an article I read about good dividend stocks, though I can’t remember the names of the other two health care REITs. Welltower is okay I think, but I was just thinking of hedging a little in the same area.
Hoda Mehr: Okay! When you have the names, let us know. We can research them together
Chris Calabrese: REITS are a great security to hold as they tend to not correlate with the overall market and also they are required to pay out 90% of their taxable income as dividends so you will typically get a higher dividend than other companies. There are 2 types: equity REITS and Mortgage REITS. Equity REITS hold real property and rent them out where mortgage REITS invest in Debt and rely on the spread between long term and short term rates to make money. The latter Carry more risk and are much much more volatile than traditional Equity REITS
James MacThorton: One of the healthcare REITs I looked at was Omega, though back in September I felt more comfortable with Welltower (the rankings were different at the time). Here’s an updated version of what I looked at:https://www.simplysafedividends.com/high-dividend-stocks/
High Dividend Stocks: Top 33 High Yield Stocks – December 2017
simplysafedividends.com
Chris Calabrese: James OHI has generally been a solid health care reit to hold but as of recently they are having some issues with a troubled tenant which has hurt them and there share price. I am hopeful this is just s blip in the grand scheme of things
Tony Ocasio: Take a look at Ventas (VTR).
Hoda Mehr: What’s about it interesting?
Tony Ocasio: Health care high yielder which has dropped to a buyable level.