Universal Health Realty Trust
Say what you want about lawmakers and Obamacare, but one sector that is seeing big growth and little risk of a slowdown in the long-term is healthcare. The demographic push of aging Baby Boomers continues to create more “customers” for medical facilities and the healthcare system in general — regardless of who is footing the bill.
That’s where Universal Health Realty Trust (UHT) comes in. This stable stock is a 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, because the stock must deliver 90% of its taxable income back to shareholders according to U.S. tax law.
UHT is a small player, at only $550 million in market cap, and operates in 15 states with less than 60 properties in its investment portfolio. 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 6.0%.
Shares have underperformed so far this year, with an 18% decline in the stock thanks to a collapse for many REIT stocks in the spring … but shares have stabilized and appear to be a good bargain investment.