Healthcare Stocks for Retirement: Ventas (VTR)
It stands to reason that if more people are demanding healthcare, it’ll take more hospitals to facilitate that care. Some of the best opportunities among healthcare stocks are those firms that own all the real estate related to hospitals, doctors offices, senior living facilities, etc. Ventas, Inc. (NYSE:VTR) is one of the elder statesmen of the healthcare real estate investment trusts (REITs).
Today, VTR owns nearly 1,300 properties including senior housing facilities, skilled nursing houses, acute care facilities and other medical-focused real estate. The real beauty for Ventas is that it doesn’t operate the facilities — it’s strictly an owner. That means it’s not responsible for all the hassles that come along with medicine nor is it subjected to the whims of Obamacare or its replacement.
It just collects a rent check. And getting those rent checks have been insanely profitable for VTR.
They’ve been pretty profitable for investors, too. Since 2001, Ventas has managed to grow its dividend by a compound annual growth rate (CAGR) of 8% per year. That’s inflation crushing, but also has managed to keep pace with broader increases in healthcare inflation. The firm currently yields 4.8%.
For retirement investors looking for a growing dividend from their healthcare stocks, VTR could be it.