Welltower Inc. (WELL): A Bull Case Theory

We came across a bullish thesis on Welltower Inc. on Investing Lawyer’s Substack. In this article, we will summarize the bulls’ thesis on WELL. Welltower Inc.'s share was trading at $167.75 as of August 27^th. WELL’s trailing and forward P/E were 92.65       and 99.01 respectively according to Yahoo Finance.

Welltower Inc. (WELL) is a major player in the healthcare real estate sector, with a market capitalization of $108 billion, underscoring the scale and success of its business model. The company owns a diversified portfolio of senior housing, medical offices, and wellness facilities, strategically positioned to serve the rapidly aging population. This focus provides resilience and stability, particularly in times of economic uncertainty, as demand for healthcare infrastructure remains essential and non-cyclical.

A key driver for Welltower’s long-term growth is the expanding 80+ demographic, which is expected to fuel sustained demand for senior housing and related services over the coming decades. Partnering with established operators enhances the company’s ability to deliver high-quality care while capturing steady cash flows from its assets. Welltower currently offers a 1.8% dividend yield, supported by a 55% payout ratio, indicating both security and room for future growth. The dividend has been increased for one consecutive year, reflecting management’s commitment to returning capital to shareholders while maintaining financial discipline.

The company’s scale, combined with its strategic positioning in senior housing and wellness facilities, makes it well placed to capitalize on demographic tailwinds that are unlikely to reverse. Importantly, its defensive profile offers investors stability in volatile markets, while its ability to leverage long-term healthcare trends provides a structural growth opportunity. Taken together, Welltower represents a durable investment case built on demographic inevitabilities, solid asset quality, and prudent capital allocation. Far from being at risk of decline, the company is positioned to strengthen further as demand accelerates.

Previously we covered a bullish thesis on Omega Healthcare Investors, Inc. (OHI) by NotFunnyLikeHaHa in May 2025, which highlighted its high dividend yield, stable FFO, and demographic support from an aging population. The stock has appreciated approximately by 13.92% since our coverage as earnings strength and guidance reaffirmation supported the thesis. The thesis still stands. Investing Lawyer shares a similar perspective on Welltower Inc. but emphasizes broader asset diversification.

Welltower Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held WELL at the end of the first quarter which was 44 in the previous quarter. While we acknowledge the potential of WELL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.