Cardinal Health, Inc. (CAH), Omega Healthcare Investors Inc (OHI), Health Care REIT, Inc. (HCN): This Trio Will Benefit From Aging Boomers

Omega Healthcare Investors Inc (NYSE:OHI)’s portfolio has notable exposure to skilled nursing facilities, which makes third party payment issues a big concern. The added risk has historically left Omega at a yield discount to competitors. That said, the company has a long history of annual dividend hikes and offers an around 5.7% dividend yield. Moreover, skilled nursing facilities are the place where the oldest Americans often wind up, eventually.

The REIT’s relatively small portfolio should make growth easier to come by, too. So, for more aggressive income investors, Omega Healthcare Investors Inc (NYSE:OHI) might have more to offer.

A Coming Wave

The aging of the baby boomers is like watching a slow moving wave as it comes crashing ashore. Cardinal Health, Inc. (NYSE:CAH) will increasingly help keep people out of medical facilities, which should keep its top and bottom lines heading higher over the long term. Health Care REIT, Inc. (NYSE:HCN) and Omega will both benefit from providing the care people need when staying at home is no longer an option.

More conservative investors should like Health Care REIT because of its size and stability, while more aggressive types should find Omega’s smaller size of interest. That said, both REITs have sold off along with the broader REIT sector, so now might be a good time for investors to watch the pair.

Reuben Brewer has a position in Health Care REIT. The Motley Fool recommends Health Care REIT.

The article This Trio Will Benefit From Aging Boomers originally appeared on Fool.com and is written by Reuben Brewer.

Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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