Considerswitching from Johnson & Johnson to this Exceptional High-Dividend Stock with Outstanding Yield?
In the ever-evolving world of investments, income-focused investors are always on the lookout for opportunities that can maximise their returns. One such option that has been attracting attention is Universal Health Realty Income Trust (UHT), a real estate investment trust (REIT) specialising in healthcare properties.
UHT, managed by its largest tenant, Universal Health Services, boasts a dividend yield of approximately 7.4%, more than twice as large as Johnson & Johnson's (JNJ) 3.4%. This high dividend yield might make up the majority of its total return over time.
The properties owned by UHT include medical offices, acute care hospitals, behavioral care centers, and other types of healthcare properties, spread across various U.S. markets, totalling around 75 properties. Over the past decade, the dividend growth rate of UHT has averaged around 1.5%, and the company has increased its dividend annually for four decades, although not enough to be classified as a Dividend King.
For those who are retired and seeking to maximise the income from their portfolio, switching from JNJ to UHT could more than double their dividend income stream. However, it's important to note that the management of UHT by its largest tenant introduces some management risks.
Beyond UHT, several other REITs offer dividend yields greater than 7.4%. Notably, AGNC Investment Corp. (AGNC), a mortgage REIT focusing on agency mortgage-backed securities, currently offers a staggering 15.6% dividend yield, making it one of the highest-yielding REITs available.
Healthpeak Properties (PEAK), focused on healthcare, life sciences, and office properties, offers a strong 7.2% dividend yield, slightly below UHT's yield but close to the threshold and notable for its stable cash flow and sector resilience.
For yields firmly above 7.4%, mortgage REITs like AGNC are the primary candidates, offering significantly higher yields compared to most equity REITs. If you seek additional specific REITs beyond UHT with yields above 7.4%, focusing on mortgage REITs or specialized sectors may be the most fruitful approach. Equity REITs with such high yields tend to be rare or subject to higher risk.
In conclusion, for income investors looking to diversify their portfolios and maximise their returns, high-yield REITs like UHT, AGNC, and PEAK might be worth a closer look. As always, it's crucial to conduct thorough research and consider your individual investment goals and risk tolerance before making any decisions.
**Summary table of notable high-yield REITs beyond UHT (yield >7.4%):**
| REIT Name | Focus Area | Dividend Yield | |----------------------|-----------------------------|---------------------| | AGNC Investment Corp. | Agency mortgage-backed securities | **15.6%** | | Universal Health Realty Income Trust (UHT) | Healthcare properties | >7.4% (reference) | | Healthpeak Properties (PEAK) | Healthcare & life sciences | 7.2% (just below) |
- The dividend yield of UHT, a real-estate investment trust (REIT) specializing in healthcare properties, is more than double that of Johnson & Johnson (JNJ), making it an attractive option for income-focused investors.
- Beyond UHT, AGNC Investment Corp., a mortgage REIT focusing on agency mortgage-backed securities, offers a significantly higher dividend yield of 15.6%, one of the highest among available REITs.
- For income investors seeking REITs with high yields above 7.4%, concentrating on mortgage REITs like AGNC or specialized sectors may lead to fruitful results, as equity REITs with such high yields are typically rare or subject to higher risk.
