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3 High-Yield Healthcare Stocks to Buy Hand Over Fist in August
3 High-Yield Healthcare Stocks to Buy Hand Over Fist in August

Yahoo

time10-08-2025

  • Business
  • Yahoo

3 High-Yield Healthcare Stocks to Buy Hand Over Fist in August

Key Points Merck is an industry giant that has proved time and again it can innovate for the future. Ventas has positioned itself to grow its business and its dividend. Omega Healthcare Investors has survived the storm, and now it is ready to ride the wave. 10 stocks we like better than Merck › If you are looking at healthcare stocks for dividend ideas in August, don't get too caught up on the sector's low 1.8% dividend yield. You can do much better than that without having to take on huge risks. Three solid options that you might want to buy hand over fist right now are Merck (NYSE: MRK), Ventas (NYSE: VTR), and Omega Healthcare Investors (NYSE: OHI). Here's a primer on each one. 1. Merck is a high-yield survivor Merck's dividend yield is a pleasing 4.1% or so, more than twice the healthcare sector's average. The company has increased its payout annually for 15 consecutive years. From this standpoint, it is an attractive dividend stock, but what about the business? Merck is one of the world's largest pharmaceutical companies. Discovering new drugs is hard work, and it usually doesn't happen in a linear fashion. Right now, investors appear concerned that Merck's current patents will expire before it finds a new blockbuster to replace its older drugs. That's not unreasonable, since it is highly reliant on the revenue of just one drug right now (oncology treatment Keytruda). But this isn't an unusual development; it is kind of normal for drug companies to go through periods like this. What's important to note is that Merck's strong research and development capabilities and its scale (it can fairly easily buy smaller companies to bolster its drug pipeline if it needs to) have allowed it to thrive over the long term. And that has allowed the dividend to trend reliably higher for decades, though it has not increased every single year. If you can handle buying while others are selling, Merck looks like an attractive choice right now. Its yield is near the highest levels since the Great Recession. 2. Ventas cut its dividend, but now it's set to grow Ventas is a real estate investment trust (REIT) specializing in senior housing, with a dividend yield of 2.8%. That's not bad, but it's not exactly an earth-shattering figure. And on top of that, the REIT cut its dividend during the pandemic. It was the right move, given that senior housing facilities were particularly hard hit during that time. And the dividend cut allowed Ventas to work with its tenants and shift its business approach in a more growth-focused direction. Specifically, Ventas increased its exposure to properties that it both owns and operates (technically, it hires a property manager). This allows the revenue and costs to flow directly onto the income statement. When times are tough, like during the pandemic, that's bad news. When times are flush, however, these assets can supercharge earnings. Senior housing has come back strongly from the pandemic hit. And the aging demographics of the country suggest there's more growth to come. The big story, however, is that dividend increases have resumed. And given the growth-focused nature of the business right now -- adjusted funds from operations rose a heady 9% year over year in the second quarter -- it is reasonable to expect dividend raises to be quite attractive in the years ahead. 3. Omega Healthcare Investors is still out of favor Omega Healthcare's dividend yield is a lofty 6.7%. The payout hasn't been increased in years, but it also hasn't been cut. Like Ventas, Omega is a REIT that owns senior housing properties, and they were hard hit during the pandemic. Omega chose to hold the line on its dividend as it worked with its tenants. The portfolio repositioning has been difficult, but now that the world has mostly moved past the pandemic, things are starting to improve. Adjusted FFO rose around 8% in the second quarter. That strong showing isn't quite as big an opportunity on the dividend front here, however, because its payout remained high throughout the pandemic period. But it is a sign that Omega's payout is likely sustainable as it gets back on the growth track, including buying new properties. Ventas' exposure to senior housing and the graying of the country are growth engines. Omega's exposure to this same thing is a recovery engine. If you need income today, buying into its turnaround story will probably be more attractive to you than buying Ventas. Three solid dividend choices in the healthcare sector Even when the average healthcare stock has a miserly 1.8% yield, you can still find very attractive income options. Merck is a tried-and-true dividend payer with a well-run business and attractive yield. Ventas, which also has an attractive yield, repositioned itself for growth during the pandemic, and that is now starting to shine through on the dividend side of things. And Omega muddled through the pandemic without a dividend cut, leaving it with a high yield today and a strengthening business. August could be a great time to buy one or more of these healthcare dividend stocks. Should you buy stock in Merck right now? Before you buy stock in Merck, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Merck wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck. The Motley Fool has a disclosure policy. 3 High-Yield Healthcare Stocks to Buy Hand Over Fist in August was originally published by The Motley Fool

3 Unstoppable Ultra-High-Yield Stocks to Buy Right Now for Less Than $500
3 Unstoppable Ultra-High-Yield Stocks to Buy Right Now for Less Than $500

Yahoo

time28-07-2025

  • Business
  • Yahoo

3 Unstoppable Ultra-High-Yield Stocks to Buy Right Now for Less Than $500

Key Points LTC Properties is offering a 6.4% dividend yield. Omega Healthcare sports a 6.9% yield. Universal Health Realty has a 7.1% yield. 10 stocks we like better than Omega Healthcare Investors › The S&P 500 index (SNPINDEX: ^GSPC) has a miserly dividend yield of just 1.2% today. The average healthcare stock has a yield of just under 1.8%. But what if you could get yields from healthcare stocks that were three to nearly four times higher? You can! Here are three healthcare landlords that have paid reliably and have huge yields, and you can get several shares for less than $500. Surviving the pandemic in one piece When the COVID-19 pandemic hit, nursing homes and senior housing properties got slammed. It makes sense; COVID spread easily in group settings and was particularly deadly for older adults. Occupancy levels fell, move-ins stalled, and move-outs (which include deaths) rose. It was a brutal time for senior housing landlords, with some of the largest and most respected healthcare real estate investment trusts (REITs) cutting their dividends, including Ventas (NYSE: VTR) and Welltower (NYSE: WELL). ​​ However, not all senior housing REITs went the dividend-cut route. LTC Properties (NYSE: LTC) and Omega Healthcare Investors (NYSE: OHI) held their dividends steady. Both have worked with their tenants, including exiting troubled relationships and bringing on new operators. LTC Properties has notably started to include senior housing operating assets (also known as SHOP) in its mix, which means it owns and operates the assets. Of course, each tenant has its own needs, so there were a lot of moving parts, and there's no one-size-fits-all description of what these REITs did. However, the outcome was that they continued to pay their dividends just like they had before the pandemic. Now that the world has learned to live with COVID, these two REITs are set to benefit from serving the housing needs of the oldest people. The demographic future is set to see the ranks of the oldest cohort rise materially in the years ahead. These groups are the ones that need the most assistance with their day-to-day needs. With exposure from nursing homes and well-living, Omega and LTC are worth a close look for high-yield investors today. Their yields are 6.9% and 6.4%, respectively, as I write this. A steadily growing dividend Just holding the line during the pandemic might not be enough for some investors. So, how about a healthcare REIT that has increased its dividend annually for 40 consecutive years? That's exactly the record that Universal Health Realty Trust (NYSE: UHT) has achieved to go along with its ultra-high 7.1% dividend yield. Unlike Omega and LTC Properties, Universal Health Realty's portfolio is focused on medical office properties. There are two caveats here, however. The company's largest tenant is Universal Health Services (NYSE: UHS), which also happens to be the company that manages the REIT. So, it is a controlled entity, and investors would be right to wonder if the decisions being made about the REIT are being made for the benefit of investors or for the benefit of the manager. However, given the reliable dividend growth, it seems like investors are quite important here. That said, dividend growth has historically averaged around 1.5% a year. That's not a particularly large number, which might dissuade dividend growth investors from buying the REIT. But, given the lofty yield, if you are looking to generate as much income as possible today, Universal Health Realty's slow and steady growth might not bother you all that much. Keeping the checks flowing If there's one thing that a dividend investor absolutely hates to see, it is a dividend cut. Despite terrible headwinds, LTC Properties and Omega both avoided doing that, and now they look ready to benefit from an aging population. You can buy around 13 or so shares of either one with $500, or some combination of the two. Universal Health Realty's dividend grew right through the difficult pandemic period, albeit slowly, which many dividend investors will probably find even more appealing. A $500 investment will net you around 12 shares of Universal Health Realty Trust. Do the experts think Omega Healthcare Investors is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Omega Healthcare Investors make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,041% vs. just 183% for the S&P — that is beating the market by 858.71%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 3 Unstoppable Ultra-High-Yield Stocks to Buy Right Now for Less Than $500 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Omega Healthcare Investors, Inc. (OHI): A Bull Case Theory
Omega Healthcare Investors, Inc. (OHI): A Bull Case Theory

Yahoo

time21-05-2025

  • Business
  • Yahoo

Omega Healthcare Investors, Inc. (OHI): A Bull Case Theory

We came across a bullish thesis on Omega Healthcare Investors, Inc. (OHI) on Value Investing Subreddit Page by NotFunnyLikeHaHa. In this article, we will summarize the bulls' thesis on OHI. Omega Healthcare Investors, Inc. (OHI)'s share was trading at $37.42 as of May 19th. OHI's trailing and forward P/E were 23.24 and 10.13 respectively according to Yahoo Finance. GagliardiImages/ Omega Healthcare Investors (OHI) presents a compelling opportunity for dividend-focused and value-oriented investors seeking steady income and long-term tailwinds. As a REIT specializing in skilled nursing and assisted living facilities, OHI owns over 900 properties across the U.S. and U.K., leased to a diverse set of operators. Its positioning aligns well with demographic trends, as the aging population continues to drive sustained demand for long-term care—particularly with around 10,000 Baby Boomers turning 65 each day. This secular trend underpins a durable long-term growth story, even if OHI isn't a fast-moving growth stock. The company currently offers an attractive ~7% dividend yield, well above the sector average. Importantly, this yield is supported by stable Funds From Operations (FFO), a manageable payout ratio, and a track record of consistent dividends, even through challenging periods like COVID. Recent earnings were solid, with FFO beating expectations and management reaffirming full-year guidance, showcasing operational resilience amid broader macro pressures like rising rates and geopolitical uncertainty. The stock has also demonstrated relative price stability, appealing to investors seeking defensive plays in volatile markets. Risks remain, including operator concentration, regulatory overhangs in the skilled nursing sector, and sensitivity to debt markets, but management has navigated these well with a conservative, experienced approach. While OHI may not offer explosive upside, the combination of strong cash flow, supportive demographics, a reliable dividend, and prudent capital allocation makes it a solid pick in the healthcare REIT space. At current levels, the stock offers an attractive risk/reward profile for long-term income-oriented investors. Omega Healthcare Investors, Inc. (OHI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held OHI at the end of the fourth quarter which was 21 in the previous quarter. While we acknowledge the risk and potential of OHI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than OHI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.

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