Jenny Harrington's Top 2026 Pick: Sabra Healthcare REIT

Sabra Healthcare: A Top Pick for 2026

• 🎯 Sabra Healthcare is identified as Jenny Harrington's top pick for 2026, chosen for its strategic positioning in healthcare real estate.
• 🏥 The company's portfolio is diversified across skilled nursing (49%), senior housing (34%), and behavioral health.

Investment Rationale and Financials

• 💰 Sabra Healthcare trades at a 12 times FFO multiple, significantly lower than the market average.
• 📈 It offers a 6.5% dividend yield and projects 5% earnings growth.
• 📊 The stock experienced a 9% share price increase last year, with a total return of approximately 17% when including dividends.

Demographic Tailwinds

• 🚀 Harrington emphasizes that demographics strongly favor Sabra Healthcare's focus areas, particularly senior housing and skilled nursing.
• ⏳ The company is seen as having significant upside potential due to favorable demographic trends and a lack of substantial prior price run-up.

Dividend Investing and REITs

• 💡 For dividend investors, the income component is crucial, especially for those seeking stability during market downturns.
• 📈 The steepening yield curve may present opportunities for dividend trades this year.
• 📊 While many REITs are invested for dividends, the average REIT index yield is estimated to be around 3%, making Sabra's higher yield notable.
• 🔍 Investors seeking income within the REIT space need to actively seek out high dividend streams, as it's not a universal characteristic of all REITs.

Portfolio Needs: Growth vs. Income

• ⚖️ The choice between growth and income investments depends on individual investor needs, particularly for retirees who may psychologically need a consistent income stream.
• ✅ Even if a portfolio's value declines, a consistent dividend can provide stability and psychological comfort.