Recently I’ve posted about public pension problems in the U.S. One of the main reasons for so many pensions having difficulties managing future payout expectations is because an emerging tidal wave of retirees is rolling in.  This trend is a demographic fact.

As baby boomers advance into their retirement years they may be more independent than those retirees in the past, but one thing is for certain, more elderly people in the population will lead to a greater need for elderly care facilities.  Whether this assisted living or full-time care, the demand will be rising with the aging population.

Planning for the future…Yes, families may plan for a future time when one’s grandparents or parents need assisted living, but now is the time for investors to make some plans for their portfolio.  If you’re looking for a stable high-yielding company an assisted living care provider should fit the mold you’re looking to cast.

Whether it’s today or months from now, I think it’s a wise idea to develop a list of a few healthcare REITs that fit with your investment needs.  Either buy in now or wait for when the moment is right for you.  Either way, if you’ve identified a company with a solid track record for dividends and dividend increases, you can enjoy the return, while waiting for the demographic certainly to impact assisting living and nursing care demands.

Reducing risk and increasing returns is what investors strive for.  If you have the patience, I believe you will be rewarded in both share price appreciation and dividend yield increases when investing in quality healthcare REIT companies.

Don’t know where to start?  I’d start with Health Care REIT Inc. (HCN).  The company has a number of assisted living and nursing facilities in the U.S. and has an extensive track record of dividend payments and payout increases.  The yield is currently at 5.4% annually.

Follow-up post: A Deeper Look Into Health Care REIT, Inc. (HCN)

Disclosure: No Position