The Top Baby Boomer Stock

08/20/2015 8:00 am EST


Ian Wyatt

Publisher & Chief Investment Strategist, Wyatt Investment Research

The end of World War II sparked the baby boom and created one of the most influential generations in the history of our country, notes Ian Wyatt, editor of Million Dollar Portfolio.

The baby boomer generation is now entering the next phase of their lives: retirement. Every day, 10,000 baby boomers turn 65 years old. That will continue every day for the next 15 years.

The retirement of baby boomers is one of the biggest trends of our time. And astute investors know that it's important to invest ahead of major trends.

That's why now is a great time to reiterate one recommendation, the top baby boomer stock—Health Care REIT (HCN)—which is a pure-play investment on the aging of the baby boomer generation.

Founded in 1970, Health Care REIT owns 1,411 properties serving a wide spectrum of retirees. These properties include hospitals and long-term care facilities, inpatient rehab, independent living, and assisted living facilities.

It's important to realize that the company is not a healthcare provider. It doesn't operate hospitals or assisted living facilities. Instead, it buys properties and leases them to operators.

Health Care REIT focuses on properties in densely populated and affluent markets. With $21 billion of property, its top five markets are Los Angeles, London, Boston, New York, and Toronto.

As baby boomers retire, there will be greater demand for senior housing and healthcare. That will provide a nice tailwind behind the healthcare real estate business.

On August 20, the company will issue its 177th consecutive dividend payment.

In the last decade, the dividend has increased by 38%. Based on history, it's likely that the company will increase its dividend again in February 2016.

For investors seeking a solid dividend stock, Health Care REIT—currently yielding 4.9%—is a reasonably priced dividend stock with growth potential.

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