Universal Health Realty Trust
Dividend Yield: 5.7%
Say what you want about the U.S. economy, but one sector that is seeing big growth and little risk of a slowdown is healthcare. The demographic push of aging baby boomers continues to create more “customers” for drug companies, medical facilities and the healthcare system in general.
That’s where Universal Health Realty Trust (UHT) comes in. This pick is real estate investment trust that invests in hospitals, surgery centers, medical office buildings and other related businesses.
Best of all, its REIT status means guaranteed dividends since the stock must deliver 90% of its taxable income back to shareholders according to U.S. tax law.
UHT is a small player with a market cap of $550 million and operations in just 15 states. However, it has paid dividends for 26 years and has increased its dividend like clockwork every year … even if it is only a half-cent bump annually. The dividend has jumped 28% in the last decade and the current yield at UHT is 5.7%.
Shares have underperformed so far this year, so consider this a bargain buy.
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the aforementioned securities.