7 Safe High-Yield Dividend Stocks: National Health Investors (NHI)
NHI Dividend Yield: 5.5%
National Health Investors Inc (NYSE:NHI) stock has pulled back over the past few sessions — possibly due to concern about a potential GOP overhaul of the Affordable Care Act.
But that selloff — which has pushed NHI’s dividend yield to nearly 5.5% — looks overdone.
It’s perhaps too simple to argue that a business based on financing senior living and medical facilities has a significant degree of safety. But there’s truth to that argument. With the baby boomer generation retiring, demand for those facilities seems likely to only rise.
How exactly the government will pay for those facilities might be a matter of debate — and have an impact on NHI stock. But at the same time, this isn’t just another one of those high-risk, high-yield dividend stocks. National Health Investors has been around for a quarter of a century at this point. The company did cut its dividend back in 2000, but it has risen steadily since amid a number of questions about U.S. healthcare costs.
Indeed, NHI raised its dividend more than 5% ahead of a fourth-quarter report last month that the market rather liked. And yet the recent selloff has knocked shares down almost 10%.
It seems like a case of investors “selling first and asking questions later.” And it seems like a buying opportunity.