3 Healthcare REITs to Help Fund Your Retirement
Medical Properties Trust (NYSE: MPW), Physicians Realty Trust (NYSE: DOC), and Omega Healthcare Systems (NYSE: OHI) all benefit from our aging population and the ever-growing need for healthcare. The three real estate investment trusts (REITs) have all shown great total returns over the past five years, and they have dividend yields of 4% or more -- perfect for retirees who need consistent income.
Even after last year, with the COVID-19 pandemic cutting into traffic (especially for lucrative elective surgical procedures), these three companies continue to thrive. That's thanks to the growing need for medical facilities, but also to their conservative management teams, which have managed to preserve their dividends without sacrificing their safety.
REITs are required to disburse 90% of their taxable income to shareholders via dividends to avoid taxes, but all three stocks had adjusted funds from operations (AFFO, a measure of earnings for REITs) payout ratios of 85% or less, well within what's considered a "safe" range for a REIT.
Source Fool.com
