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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.
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Wall Street slows down in the summer as many traders and investors take the season off. How often are you watching your stocks?
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- Every day; there's too much going on.
- Every week; can't afford to miss an opportunity.
- I've checked out for summer.
- I'm a long-term investor; summer doesn't change my schedule.