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Our Favorite Passive Income Idea Pays Big Dividends And Grows Daily

The post Our Favorite Passive Income Idea Pays Big Dividends and Grows Daily appeared first on 24/7 Wall St..

Healthcare real estate investment trusts (REITs), which own properties such as senior housing, medical office buildings, skilled nursing facilities, and hospitals, may present a compelling opportunity right now. The demographic tailwind is hard to ignore: the U.S. baby boomer generation is aging rapidly, driving sustained demand for senior living and medical facilities that is not tied to economic cycles. After years of underperformance from 2023 through mid-2025, valuations in the sector look more attractive relative to historical norms, potentially offering a much better entry point than in recent years.

Healthcare real estate also tends to be more defensive than other property types because people need medical care regardless of the broader economy, which makes it an appealing hedge in an uncertain macroeconomic environment. Additionally, with the ACA subsidy expiration pushing more costs onto consumers and Medicare premiums rising, healthcare providers are under pressure to consolidate and outsource their real estate, potentially increasing demand for REIT-owned properties. Finally, as interest rates stabilize or decline, REITs broadly stand to benefit, as their dividend yields become more attractive relative to bonds and their borrowing costs ease.

Quick Read

The population in the United States is aging fast, and the need for healthcare facilities is growing.
Healthcare REITs pay dependable income, which can compete with other passive income ideas.
Healthcare REITs are priced at very attractive levels now and remain one of our favorite income ideas for 2026.
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Healthcare spending is projected to grow 5% per year until 2028. Given all the positives for the sector, we decided to screen all healthcare REITs to identify the companies best suited for growth and income investors looking to diversify. All are rated Buy at top Wall Street firms that we cover, and all pay dependable passive income.

Why do we cover healthcare REIT dividend stocks?

Healthcare REIT dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Care Trust REIT

CareTrust REIT (NYSE: CTRE) engages in the ownership, acquisition, development, and leasing of skilled nursing facilities, senior housing, and other healthcare-related properties. It primarily acquires, finances, develops, and owns real property for lease to third-party tenants in the healthcare sector. The company has a portfolio of long-term net-leased properties across the United States and the United Kingdom. and pays a 3.47% dividend.

CareTrust owns, directly or indirectly through joint ventures, and leases to independent operators skilled nursing facilities, multiservice campuses, assisted living facilities, and independent living facilities, consisting of operational beds and units located in various states, with the highest concentration of properties by rental income situated in California, Texas, and Tennessee.

Its facilities include:

Camarillo
San Juan Capistrano
Barton Creek
Bayshire Carlsbad
El Centro Post-Acute Care
Bayshire Rancho Mirage
Weiser Care
Wellspring Health and Rehabilitation of Cascadia
Cornerstone Rehab & Health Care Center

The $48 UBS price target accompanies a Buy rating.

Healthpeak Properties

This leading company also invests in real estate in the healthcare industry, including senior housing, life sciences, and medical offices. Healthpeak Properties (NYSE: DOC) shares have lagged peers in 2025 due to lower-than-expected rent increases. It currently trades at a 40% discount to its fair value and offers a 7.23% dividend.

This fully integrated REIT acquires, develops, owns, leases, and manages healthcare real estate across the United States. It owns, operates, and develops real estate focused on healthcare discovery and delivery. Its segments include:

Lab
Outpatient Medical
Continuing Care Retirement Community (CCRC)

The Outpatient Medical segment owns, operates, and develops outpatient medical buildings, hospitals, and lab buildings.

The Lab segment properties contain laboratory and office space, and are leased primarily to:

Biotechnology, medical device, and pharmaceutical companies
Scientific research institutions
Government agencies
Organizations involved in the life science industry

Its CCRC segment is a retirement community that offers independent living, assisted living, memory care, and skilled nursing units, providing a continuum of care within an integrated campus.

Baird has an Outperform rating and a $22 target.

National Health Investors

This top company posted fourth-quarter results with funds from operations above Wall Street estimates, and it pays a solid 4.31% dividend. National Health Investors (NYSE: NHI) specializes in sales, leasebacks, joint ventures, senior housing operating partnerships, and mortgage and mezzanine financing for need-driven and discretionary senior housing and medical investments. It operates through two segments.

The Real Estate Investments segment consists of real estate investments, leases, and mortgage and other notes receivable in independent living facilities, assisted living facilities, entrance-fee communities, senior living campuses, skilled nursing facilities, and a hospital. The company has approximately 193 healthcare real estate properties located in 33 states and leased primarily under triple-net leases to 27 tenants.

The Senior Housing Operating Portfolio segment comprises two ventures that operate independent living facilities. This segment has over 15 properties across eight states, totaling 1,732 units.

Truist has a Buy rating with a $92 price target.

Omega Healthcare Investors

This top REIT is another of the highest-yielding in the group, with a 5.90% dividend. Omega Healthcare Investors (NYSE: OHI) focuses heavily on skilled nursing facilities (over 80% of revenue) and senior housing, with a portfolio generating strong cash flows. It operates through a single segment that invests in healthcare-related real estate properties located in the United States and the United Kingdom.

The company’s core business is to provide financing and capital to the long-term healthcare industry with a particular focus on:

Skilled nursing facilities
Assisted living facilities and, to a lesser extent
Independent living facilities
Rehabilitation and acute care facilities
Medical office buildings

Its core portfolio comprises long-term leases and real estate loans with healthcare operating companies and their affiliates. In addition, Omega Healthcare makes loans to operators or their principals.

The company’s portfolio of real estate investments includes over 1,026 healthcare facilities located in 42 states and the United Kingdom, operated by 87 third-party operators.

Goldman Sachs has a Buy rating and a $54 target price.

Sabra Healthcare

This leading healthcare REIT invests in skilled nursing, senior housing, and behavioral health facilities, and delivers a strong 6% dividend. Sabra Healthcare REIT (NASDAQ: SBRA) is one of the larger companies in the industry. It operates as a self-administered, self-managed REIT that owns and invests in real estate serving the healthcare industry throughout the United States and Canada.

Its primary business is acquiring, financing, and owning real estate to lease to third-party healthcare tenants. The company’s investment portfolio primarily comprises:

Skilled nursing/transitional care facilities
Senior housing communities
Behavioral health facilities, specialty hospitals, and other facilities leased to third-party operators
Senior housing communities operated by third-party property managers under property management agreements
Investments in joint ventures, loans receivable, and preferred equity investments

Sabra Healthcare’s real estate properties held for investment include 37,047 beds/units across the United States and Canada.

Citigroup holds a Buy rating with a $24 price objective.

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