2 REITs To Own Forever

Doctor, Dentist, Dental, Clinic, Medical, Surgeon

If you are looking for growth at bargain prices, there's no better place to invest other than the healthcare sector. One way to take advantage of increasing healthcare demand is through real estate. Medical buildings have numerous requirements that make them sufficiently different from other property types that they are specially built.

Healthcare Trust of America (HTA) and Medical Properties Trust (MPW) invest in very different types of healthcare buildings, but both benefit from the increasing demand for healthcare. Both have significant growth potential in the near future and both have been raising their dividends annually.

For conservative investors who are looking for rock-solid income stability in any environment, and with income growth, these are two picks that fit the bill. These REITs directly benefit from the growing demand for medical services, which allows them to collect higher rents.

Healthcare Trust of America is yielding 4.5% and is the largest owner of medical office buildings or MOBs. These are buildings you might go to in order to have an outpatient procedure done or to see a specialist. This sub sector is a major winner from the sheer increase in the number of procedures that have become commonplace.

Medical Properties Trust, yielding 5.2%, has been buying up hospitals around the world. Primarily "general acute care" hospitals, these are the kinds of facilities you might go to if you needed emergency care from an accident or were experiencing symptoms of a stroke or heart attack.

These are facilities that we can all agree are essential to have access to in order to maintain the high standard of living we desire.

HTA proved the quality of their tenants in the midst of the COVID shutdown in 2020. When many REITs were seeing their rent collections drop as low as 50%, HTA continued collecting 98% of rent throughout the crisis.

Where many companies were cutting their dividend in 2020, HTA raised the dividend. This is thanks to tenants who did the one thing that landlords want – they paid their rent.

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