Dividend REITs — Healthcare Trust of America (HTA)
Dividend yield: 5%
Another retirement REIT benefitting from favorable demographic trends is Healthcare Trust of America (HTA), one of the largest medical office landlords in America.
As Americans age, they will require more healthcare services. That part is a no-brainer. The problem, though, is getting paid. With the U.S. government strapped for cash, Medicare reimbursements are a lot less generous than they used to be across most of the medical field. And in the age of Obamacare’s micromanagement, many doctors may see significant cuts to their income.
But while the economics of medicine may not be as attractive as they once were, doctors are still reliable rent payers. This makes HTA a safe bet. And with a current dividend yield of 5%, HTA is an attractive one as well. HTA is a young REIT, having only gone public in 2012. So it’s too early to sing its praises as a dividend raiser. But given the favorable economics of the business, I would expect the dividend hikes to follow shortly.