Top 2 Income Plays On The Baby Boomers
But it goes beyond that, especially for income investors. The real estate investment trust (REIT) space is one of the best places to find income.
What some investors don’t realize is that it’s also one of the best ways to capitalize on the aging of Baby Boomers.
Baby Boomers — those born in the U.S. between 1946 and 1964 — first started turning 65 in 2011. In 2012, Baby Boomers made up over 24% of the U.S. population.
Growth of the 65-and-older U.S. population is expected to explode over the next few decades. The nation’s population of those 65 and older will nearly double from 2012 to 2050.
That means there will be a lot of people piling into nursing homes and needing long-term care. The outlook for health-care facilities is very positive.
Top Two Income Plays on the Baby Boom
No. 1 Income Play On The Baby Boom: Health Care REIT (NYSE: HCN)
Health Care REIT offers a 5.1% dividend yield. It has boosted its dividend payment for 171 straight quarters. This REIT focuses on various health-care facilities, including assisted living, skilled nursing and independent living.
Health Care REIT has nearly 1,200 properties across 46 states. The majority of its portfolio includes senior housing facilities, but the REIT also has a strong presence in skilled nursing facilities.
Last year it spent $5.7 billion to acquire Sunrise Senior Living, which operates over 300 senior living communities. This move helps give Health Care REIT even more exposure to properties that will benefit from an aging U.S. population.
Health Care REIT is also active in turning over its portfolio. It divested over $500 million in non-core properties last year and recognized nearly $50 million for the sale of those properties. It will then use that money to reinvest in higher yielding properties.