There’s a demographic reality in the country, and it is that the baby boom generation is aging rapidly. That means an increased demand for elderly care services such as health care facilities, nursing homes, senior housing and hospital and skilled nursing services.
Enter HCP, Inc. (NYSE:HCP). The company is a hybrid real estate investment trust, or REIT, that invests primarily in properties serving the healthcare industry. The company also invests in what’s known as mezzanine loans and other debt instruments related to the financing of these properties.
The great thing about HCP is it’s in a growth industry, but it’s not merely a growth stock. Rather, it’s an income play that is well positioned not just in terms of growth in the health care business, but also because of its dividend growth potential. This REIT currently boasts an impressive yield of 4.9%, easily the best on our list of under-the-radar dividend plays. Moreover, the shares are up nearly 29% during the past two years, and that’s growth any income investor can embrace.