Investors love dividend stocks, especially those with high yields, because they provide a substantial income stream and offer significant total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. At 24/7 Wall St., we consistently emphasize the potential of total return to our readers. It is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return refers to the collective increase in a stock’s value, including dividends. One sector that offers dependable dividends and growth potential is real estate investment trusts, or REITs, and those in healthcare may be among the best income ideas now.
Healthcare REITs benefit from the aging U.S. population, with the 75+ age group expected to grow 6% annually until 2030, driving demand for senior housing and medical facilities. Healthcare spending has a projected growth rate of 5% per year until 2028. Given all of the positives for the sector, we decided to screen all of the healthcare REITs looking for the companies best suited for growth and income investors looking to diversify. Top Wall Street firms rate all of them a Buy, and all offer dependable passive income.
Why do we cover REIT dividend stocks?
REIT dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort. This makes it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
CareTrust REIT
CareTrust REIT Inc. (NYSE: CTRE) engages in the ownership, acquisition, and leasing of healthcare-related properties. It primarily consists of acquiring, financing, developing, and owning real property to be leased to third-party tenants in the healthcare sector. The company is engaged in the ownership, acquisition, development, and leasing of skilled nursing, senior housing, and other healthcare-related properties.
The company has a portfolio of long-term net-leased properties across the United States and the United Kingdom.
CareTrust owns, directly or indirectly through joint ventures, and leases to independent operators skilled nursing facilities (SNFs), multiservice campuses, assisted living facilities (ALFs) and independent living facilities (ILFs), consisting of operational beds and units located in various states with the highest concentration of properties by rental income situated in California, Texas and Tennessee.
Its facilities include:
- Camarillo
- San Juan Capistrano
- Barton Creek
- Bayshire Carlsbad
- El Centro Post-Acute Care
- Bayshire Rancho Mirage
- Weiser Care
- Wellspring Health and Rehabilitation of Cascadia
- Cornerstone Rehab & Health Care Center
Healthpeak Properties
This leading company invests in real estate related to the healthcare industry, including senior housing, life science, and medical offices. The shares have lagged peers in 2025 due to lower-than-expected rent increases compared to other REITs. It currently trades at a 40% discount to its fair value. Healthpeak Properties Inc. (NYSE: DOC) is a fully integrated REIT.
The company acquires, develops, owns, leases, and manages healthcare real estate across the United States. It owns, operates, and develops real estate focused on healthcare discovery and delivery.
Healthpeak Properties segments include:
- Lab
- Outpatient medical
- Continuing care retirement community (CCRC)
The Outpatient medical segment owns, operates, and develops outpatient medical buildings, hospitals, and lab buildings.
The Lab segment’s properties contain laboratory and office space and are leased primarily to:
- Biotechnology
- Medical device and pharmaceutical companies
- Scientific research institutions
- Government agencies
- Organizations involved in the life science industry
Its CCRC segment is a retirement community that offers independent living, assisted living, memory care, and skilled nursing units, providing a continuum of care within an integrated campus.
Baird has an Outperform rating and a $22 target.
National Health Investors
This top company posted solid second-quarter results with funds from operations above Wall Street estimates. National Health Investors Inc. (NYSE: NHI) specializes in sales, leasebacks, joint ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments.
It operates through two segments:
- Real Estate Investments
- Senior Housing Operating Portfolio (SHOP)
The Real Estate Investments segment consists of real estate investments, leases, and mortgage and other notes receivable in independent living facilities, assisted living facilities, entrance-fee communities, senior living campuses, skilled nursing facilities, and a hospital.
The company has approximately 193 healthcare real estate properties located in 33 states and leased primarily under triple-net leases to 27 tenants.
The SHOP segment is comprised of two ventures that own the operations of independent living facilities. This segment has over 15 properties located in eight states with a combined 1,732 units.
Omega Healthcare Investors
This top company is among the highest-yielding in the group. It focuses heavily on skilled nursing facilities (over 80% of revenue) and senior housing, with a portfolio generating strong cash flows. Omega Healthcare Investors Inc. (NYSE: OHI) operates through a single segment, which invests in healthcare-related real estate properties located in the United States and the United Kingdom.
The company’s core business is to provide financing and capital to the long-term healthcare industry with a particular focus on:
- Skilled nursing facilities
- Assisted living facilities and, to a lesser extent
- Independent living facilities
- Rehabilitation and acute care facilities
- Medical office buildings
Its core portfolio consists of its long-term leases and real estate loans with healthcare operating companies and affiliates. In addition, Omega Healthcare makes loans to operators and/or their principals.
The company’s portfolio of real estate investments includes over 1,026 healthcare facilities, located in 42 states and the United Kingdom, which 87 third-party operators operate.
Sabra Healthcare
This leading healthcare REIT invests in skilled nursing, senior housing, and behavioral health facilities. It is one of the larger companies in the industry. Sabra Healthcare REIT Inc. (NASDAQ: SBRA) is an internally managed healthcare REIT that invests in skilled nursing (SNF) and senior housing. The company operates as a self-administered, self-managed real estate investment trust that, through its subsidiaries, owns and invests in real estate serving the healthcare industry throughout the United States and Canada.
Its primary business consists of acquiring, financing, and owning real estate property to be leased to third-party tenants in the healthcare sector.
The company’s investment portfolio primarily comprises:
- Skilled nursing/transitional care facilities,
- Senior housing communities
- Behavioral health facilities, specialty hospitals, and other facilities, in each case, are leased to third-party operators
- Senior housing communities operated by third-party property managers under property management agreements
- Investments in joint ventures, loans receivable, and preferred equity investments
Sabra Healthcare real estate properties held for investment included 37,047 beds/units, spread across the United States and Canada.
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