Investors looking to add healthcare stocks to their portfolio typically buy a pharmaceutical company like Johnson & Johnson (NYSE:JNJ) or Pfizer (NYSE:PFE). But investors can also gain exposure to the healthcare industry indirectly, through Real Estate Investment Trusts that invest in healthcare properties. The beauty of healthcare REITs is that they commonly offer significantly higher dividend yields than pharmaceutical stocks.
For example, Omega Healthcare Investors Inc (NYSE:OHI) is one of the biggest healthcare REITs in the U.S., and it has a 7.7% dividend yield. It has a very high dividend yield, compared with the S&P 500 Index, which has an average dividend yield below 2% right now. Plus, Omega has potential for future growth, thanks to a huge healthcare trend set to unfold over the next several years. This makes Omega an attractive stock for income investors.