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2 Top High-Yield REITs to Buy on Market Weakness

The TSX Index is trading at all-time highs of over $16,000 at the time of writing, rebounding strongly from the 2018 sell-off. But if this has you thinking the market has overstretched and is due for some weakness, at least in the short term, and you are nervous to jump in and buy, you are not alone.

Here are two top high-yield dividend stocks to buy after a market sell-off for strong returns well into the future.

Northwest Healthcare Properties REIT (TSX:NWH.UN)

Trading 22% higher than its December 2018 lows, Northwest Healthcare Properties is a 7% yielder with strong secular tailwinds behind it that should send it soaring higher for years to come.

It’s a real long-term stock that has many advantages on its side, such as its high-quality global, diversified portfolio of healthcare real estate properties located throughout Canada, Brazil, Germany, Australia, and New Zealand. It also has exposure to the biggest demographic shift that much of the developed world is facing: the aging population. And it has an international presence as a global owner, manager, and developer of healthcare real estate: a sub-sector of real estate that has big growth ahead.

It is defensive, has a high yield, and offers steady growth and dividend income for investors for years to come.

Chartwell Retirement Residences (TSX:CSH.UN)

Chartwell stock has also recovered from its December lows, although it has not been as strong. Still, the stock is trading 8% higher.

This is also a long-term growth story that has many strong points on its side, such as fact that it is the largest provider and owner of seniors housing communities from independent living to long-term care. The company has been benefitting from rising occupancy levels, as an uptick in demand has been accompanied by a stagnant supply of seniors housing.

It will also benefit from the aging population, which will be a growth lever for years to come.

Then there’s its 4% dividend yield and its record of solid results. In its latest quarter, Chartwell reported a 6% increase in fund from operations.

After four consecutive years of cash distribution increases, and with a quality portfolio of properties, Chartwell is a solid investment that is well positioned for the future.

Going forward, the company has a strong pipeline of opportunities to expand its portfolio of seniors’ housing developments as well as a plethora of opportunities to continue to expand its support services that are offered in house.

Final thoughts

So, if you are wary about buying into this market, which is trading at all-time highs, make a list of stocks that you want to add on weakness and consider starting off that list with these two healthcare REITs that are heading for a strong future.

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Fool contributor Karen Thomas owns shares of NORTHWEST HEALTHCARE PPTYS REIT UNITS. Northwest Healthcare is a recommendation of Stock Advisor Canada.

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