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Dear Fellow Investor,
One of the Best Ways to Invest in an Aging Population – with Yield
The United States is experiencing one of the most significant demographic shifts in modern history. Americans aged 65 and older accounted for 17% of the U.S. population in 2020—or about 55.8 million people—according to the U.S. Census Bureau. By 2040, that figure is expected to climb to more than 80 million, meaning nearly one in every five Americans will be a senior citizen.
This “gray wave” isn’t just a social and healthcare issue—it’s also a powerful investment theme.
Some Americans will turn 80 this year, a milestone that creates even greater demand for senior care facilities, healthcare services, and related real estate. As Jefferies analyst Joe Dickstein recently noted:
“The 80+ population is set to increase meaningfully over the next few years, which will drive a material increase in demand for senior housing.”
Combine this with the fact that people are living longer than ever before, and the result is an undeniable surge in demand for housing, healthcare, and caregiving solutions.
The Care Shortage Problem
Alongside this rising demand is another challenge: a shortage of caregivers. According to Medsien.com:
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Patients 65 and older account for 34% of physician demand today.
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By 2034, seniors are expected to account for 42% of demand.
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The aging population will require more healthcare services, more family caregivers, and more professional facilities than the system is currently prepared to provide.
For investors, this creates an environment where companies and real estate investment trusts (REITs) that provide senior housing, medical office space, and skilled nursing facilities are set to thrive.
Company: American Healthcare REIT (SYM: AHR)
With a yield of 2.34%, American Healthcare REIT (SYM: AHR) is one of the most direct plays on the aging population. The company acquires, owns, and operates a diversified portfolio of clinical healthcare real estate, including:
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Senior housing communities
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Skilled nursing facilities
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Outpatient medical buildings
AHR operates across the United States, the United Kingdom, and even the Isle of Man, giving it broad geographic exposure. Analysts at Jefferies recently initiated a buy rating on AHR, calling it a “direct play on aging demographics” and one of the “cleanest ways to invest” in this theme.
What makes AHR attractive isn’t just the dividend—it’s the long runway for growth. As millions of Americans age into senior housing needs, demand for the kinds of properties AHR manages should climb steadily, supporting both cash flow growth and dividend stability.
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Company: CareTrust REIT (SYM: CTRE)
Another strong option is CareTrust REIT (SYM: CTRE), which yields a more robust 3.9%.
CareTrust focuses on the ownership, acquisition, development, and leasing of skilled nursing facilities, senior housing, and other healthcare-related properties. It has a strong track record of expansion and a growing pipeline of properties that should benefit from demographic tailwinds.
Most recently, CTRE posted:
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Funds from operations (FFO) of $0.43, missing estimates slightly by $0.02.
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Revenue of $112.47 million, which was up 63.3% year over year and beat expectations by more than $10 million.
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Raised guidance, with normalized FFO and FAD (funds available for distribution) per share increased from prior ranges of $1.69–$1.73 and $1.73–$1.77 to $1.77–$1.79 for both.
That growth outlook, combined with a nearly 4% dividend yield, makes CTRE particularly compelling for investors seeking both income and exposure to long-term demographic trends.
A few ETFs to consider...
The aging population story is one of the most durable investment themes of the next two decades. Unlike cyclical industries that can rise and fall with economic conditions, the need for senior housing, skilled nursing, and outpatient medical care is consistent and growing.
As more Americans enter their 70s and 80s, and as lifespans continue to increase, demand for these facilities will only rise. REITs like AHR and CTRE are well-positioned to capitalize on this growth while rewarding investors with steady dividends.
For investors who want exposure without picking individual names, there are also healthcare REIT ETFs, such as the iShares Residential and Multisector Real Estate ETF (SYM: REZ) or the Global X SuperDividend REIT ETF (SYM: SRET), both of which include healthcare-related holdings.
Bonus Trade Idea: Take-Two Interactive (SYM: TTWO)
While healthcare REITs are a strong long-term demographic play, another stock worth watching in the short term is Take-Two Interactive (TTWO).
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Since bottoming around $190 in April, TTWO has rallied to $232.40.
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With the highly anticipated release of Grand Theft Auto VI, TTWO could climb closer to $250.
For perspective, Grand Theft Auto V sold more than 210 million copies worldwide, making it the third-best-selling video game of all time. Analysts believe GTA VI could sell as many as 250 million copies over its lifecycle, making it one of the most lucrative entertainment launches in history.
This kind of franchise strength, paired with growing demand for digital entertainment, makes TTWO an exciting side play for growth-oriented investors.
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