VIDEO ON MSN MONEY
Unlike most other REITs, HCP (and the similar VTR) have short-term contracts/mortgages/etc. that make it less susceptible to getting whacked when bond/mortgage rates rise.
Additionally, it rebounded MUCH faster from the 2008-9 crash than most REITs and is up 16% this year (including dividends). It and Ventas (VTR) are the gorillas or healthcare REITs, though they have a slightly different makeup of types of medical properties. Ventas (VTR) is also a great REIT. It pays a dividend 1% less than HCP but there's a way around that:
Both HCP and VTR have no-purchase-fee stock DRIPs administered by Well's Fargo's shareowneronline.com. You can join without previously owning a share as some DRIPs require. And VTR's DRIP gives you a 1% discount from the market price for buying shares through the DRIP, which rectifies the 1% lower dividend than HCP. HCP requires $100 min investments and I think VTR requires $250, but they come with no fees and you can set up automatic monthly investments, so you don't have to save up a couple thousand before buying in order to avoid a high percentage going to broker's fees.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
These five companies are known for excellent public service. Which do you like dealing with the most?
Thanks for being one of the first people to vote. Results will be available soon. Check for results
- Hilton Hotels