Where are you going to find meaningful income to get you through retirement? Not from popular stocks, with the S&P paying less than 2%. And bonds wonaEURtmt help either, as their yields are in the tank, too.
Instead letaEURtms consider real estate investment trusts (REITs), which are tailor-made for investors who are at or nearing retirement. Specifically, IaEURtmd look to dividend-growing REITs, like the three IaEURtmm about to show you. This trio of landlords are on pace to double their dividends in just four years.
How Dividend Growth Can Quickly Double Your Money
Respected healthcare REIT Ventas (VTR) is the perfect example of how this strategy can do more than provide income. Heck, it can make you as rich as you always wanted to be!
VentasaEUR"which invests in all sorts of properties, from senior care to medical offices to even research facilitiesaEUR"is the second-largest such REIT on the market. ItaEURtms also one of the most underappreciated growth stories on Wall Street. In its 2001 annual report, Ventas boasted 268 properties across its portfolio; today, itaEURtms a healthcare juggernaut with more than 1,200.
The stock has behaved exactly like you would imagine. Since the start of 2002, the S&P 500 has put together a 267% total return. Ventas? Almost 10 times that, at 2,310% returns when you include both price gains and dividends!
Ventas Has Run Circles Around the Market
But it wasnaEURtmt just about the growth. Booming profits fueled a virtuous cycle. Yes, some investors bought in for upside potential. But others were drawn to a rapidly growing dividend that at one point doubled in a five-year span.
ThataEURtms changing, however.
As Dividend Growth Slows, So Too Does Ventas
Funds from operations (FFO) growth has slowed in recent years, and even declined in 2018. The once spry dividend has grown just 9% in total over the past five years, including a mere 0.3% hike this year.
In other words, we want to find ourselves a 2001 Ventas aEUR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.