Investing in high-yield dividend shares can be a great way to generate passive income. Once you’re invested, you typically pocket regular cash flow without having to lift a finger.

One high-yielder that’s been a fantastic source of income in recent years is Primary Health Properties (LSE: PHP). Could the healthcare-focused company in the FTSE 250 index be worth considering for your portfolio today?

A healthcare REIT

Primary Health Properties is a real estate investment trust (REIT) that owns a portfolio of over 1,100 healthcare properties across the UK and Ireland. Overall, it owns more than £6bn worth of property.

The majority of its properties are GP surgeries. Others are let to NHS organisations, HSE in Ireland, pharmacies, and dentists.

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A huge yield on offer

Now, REITs are required to pay out the majority of their profits to investors as dividends, so they often sport high yields.

And that’s certainly the case here. For 2026, analysts expect a payout of 7.3p per share, giving us a yield of about 7.8% at today’s share price of 93p.

Several other attractions

But this isn’t just a yield story – there’s a lot of other things to like about this company from an investment perspective. For a start, it has a relatively simple business model.

Primary Health Properties invests in flexible, modern properties and then lets them to government organisations on a long-term basis. The fact that a lot of its rental income is government-backed reduces risks for the company and its investors.

Second, it’s operating in a growth sector. Not only are there demographic tailwinds as a result of the UK’s ageing population – which is increasing demand for healthcare services – but a large proportion (around 50%) of UK healthcare facilities have been deemed ‘not fit for purpose’, meaning that demand for the company’s modern facilities should remain high.

One other thing to note is that the company has increased its dividend payout for 30 consecutive years. That’s a fantastic track record, however, investors shouldn’t assume that the payout will continue to rise forever.

A popular stock today

Of course, there are risks as always. For me, the biggest is UK interest rates. If these were to move significantly higher, the share price would almost certainly take a hit (offsetting gains from dividends). Because higher rates are likely to negatively impact profits.

Another risk is in relation to the company’s recent acquisition of Assura. This has increased the company’s debt levels and it will need to offload a few properties to bring down Another risk is in relation to the company’s recent acquisition of Assura. This has increased the company’s debt levels and it will need to offload a few properties to bring down debt.

Overall though, the set-up here looks quite compelling so I think the shares are worth considering as an income play. Note that over the last month, Primary Health Properties has been one of the most bought shares on AJ Bell, so I’m clearly not the only one who sees investment appeal here.

Should you invest £5,000 in Primary Health Properties Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Primary Health Properties Plc made the list?

Edward Sheldon does not hold any positions in the companies mentioned.