The healthcare sector, typically seen as defensive, is facing challenges in finding high-yielding stocks, with only a few U.S.-listed options boasting a forward dividend yield above 5%. However, expanding the definition to include healthcare-focused real estate investment trusts (REITs) reveals more attractive opportunities. Notable names include Perrigo, Healthpeak Properties, and Medical Properties Trust, each with distinct profiles and risks.
Perrigo stands out with a high forward yield of 9.6%, but its growth has stalled amid inflation and rising costs, leading to an 87.5% drop in stock value over the past decade. Healthpeak Properties, with a 7.1% yield, is restructuring to enhance value through its new subsidiary, Janus Living, which could improve market perception. Meanwhile, Medical Properties Trust offers a 6.8% yield but has faced dividend cuts due to tenant issues, raising concerns about its sustainability.
Investors should approach these high-yield options with caution, weighing potential returns against inherent risks, particularly for Perrigo and Medical Properties Trust, which may reflect broader market vulnerabilities in the healthcare sector.
Source: fool.com