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Healthcare REIT: Take Advantage Of Retiring Boom Of Baby Boomers

|Includes: Welltower Inc. (WELL)

Starting last year, tens of millions of baby boomers started to retire and this trend will continue for the next decade or two. Baby boomers are expected to live an average of 13-15 years post retirement and their number makes them really difficult to notice. If a good investor is able to track and follow trends, he should now be watching this one trend that will be dominant in the near future. The companies that will cater to these retirees will do very well in the near future. I am talking about one of these companies in this article. This company is Healthcare REIT (HCN) which operates many retiring homes all over the country.

When we talk about REITs the first thing that comes to mind is the dividend yield and when it comes to dividend yields, this country is very solid. In the last 10 years, the company raised its dividend per share almost every year. Currently the stock yields 5.19%.

Year Dividend Per Share
2002 58 cents per quarter
2003 59 cents per quarter
2004 60 cents per quarter
2005 62 cents per quarter
2006 64 cents per quarter
2007 66 cents per quarter
2008 68 cents per quarter
2009 68 cents per quarter
2010 69 cents per quarter
2011 72 cents per quarter

The company keeps acquiring new estate to add to its portfolio. Other than retiring homes, the company also owns and operates many life science facilities, inpatient and outpatient medical centers, medical office buildings and skilled nursing facilities. The company owns more than 700 properties in more than 40 states. The company has an operating margin of 13.23% and net profit margin of 13.17%.

I believe that HCN is a valuable stock to add to one's portfolio if one is interested in dividends.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.