As an income investor, I’m always looking for companies likely to raise dividends sooner rather than later. Right now, I see good potential for dividend growth in a small corner of the REIT (real estate investment trust) universe — health care REITs. These REITS, which invest in hospitals, rehabilitation facilities and senior retirement centers, delivered a 69% increase in dividend payouts in 2010 — the largest in the industry, according to SNL Financial data. Even better, health care REITs are… Read More
As an income investor, I’m always looking for companies likely to raise dividends sooner rather than later. Right now, I see good potential for dividend growth in a small corner of the REIT (real estate investment trust) universe — health care REITs. These REITS, which invest in hospitals, rehabilitation facilities and senior retirement centers, delivered a 69% increase in dividend payouts in 2010 — the largest in the industry, according to SNL Financial data. Even better, health care REITs are expected to repeat this performance by again producing the highest REIT dividend payout in the first half of this year, according to Bloomberg data. #-ad_banner-#Health care REITs are poised to grow dividends because of more than $11 billion of industry acquisitions last year. During the real estate meltdown, these REITs were able to acquire properties at bargain prices from private sellers and grow their stream of rental income. As REIT income rises, dividends go up, since these companies are required by law to distribute the majority of their income to shareholders as dividends. An added benefit is that health care… Read More