For any investor looking for passive income, dividend paying stocks are often the first thought. Though many stocks do pay a dividend the beauty about a real estate investment trust (REIT) is that they must pay out 90% of the net income produced.
This often leads to good cash flow coming in from the dividend yield on your investment.
Community HealthCare Trust (CHCT)
There are many reasons to like this publicly traded REIT. With a dividend yield just shy of 4% you can get a much better return compared to fixed income instruments, plus it invests in real estate in a growing sector and growing regions.
Healthcare REIT
The need for real estate within the healthcare sector is continually growing and with an aging baby boomer population that trend is unlikely to change over the next few decades.
Community Healthcare focuses on generating income from leasing healthcare facilities to hospitals, doctors and other healthcare systems.
Location Location Location
As the saying goes in real estate it is all about location. This is why I like what Community Healthcare is doing with their focus on property surrounding urban centers.
The areas they procure property have above average population growth and fit in well with the current trend of people migrating away from condensed cities.
Strong Growth since the IPO
In 2015 this healthcare reit went public and has increased its dividend each quarter. That, coupled with a more than 300% growth in its asset base makes Community Healthcare an enticing investment.
As far as dividend investing goes investors could do a lot worse. Those seeking an investment with a quarterly dividend may want to look further into this one.
The Power of Dividends
Building a portfolio of dividend paying stocks and REITs can lead to a noticeable amount of passive income coming in. Investors such as Andrei Jikhn generate much of their income from sources like this. You can read more about those streams here.
Disclaimer: I do not own shares of CHCT at the time of this writing.