Universal Health Realty
Universal Health Realty Trust (UHT) is a great investment for two simple reasons.
The first: Unlike real estate investment trusts, or REITs, that dabble in cyclical businesses, UHT properties include hospitals, rehab facilities, childcare centers and medical office buildings. With the demographic push of the aging baby boomers and the nature of healthcare as a recession-proof business (you get sick whether you like it or not), this provides great stability to the underlying revenue stream.
The second: Its dividends are bulletproof and substantive. It’s a REIT, and as such must deliver 90% of its taxable income back to shareholders. That’s a big mandate for big dividends, and results in a 5.7% yield at current pricing. Bigger-picture, UHT is a Dependable Dividend Stock that has made payouts uninterrupted since 1987 — and its dividend has increased from 49 cents quarterly in 2003 to 62.5 cents in June for a 28% boost during the past decade.
If you’re looking at stability and income, Universal Health Realty is a big winner. Shares admittedly have done poorly in 2013 with a roughly 14% slide year-to-date, but long-term, this is an investment that will pay off.