02/19/2012 07:00 am ET

Investing: Follow The Boomers And Buy Health Care Stocks

If you're a Baby Boomer, you may have noticed that your contemporaries aren't as spry as they used to be. Your favorite classic rock band's tour is being sponsored by Geritol. And everyone you knew from the Weather Underground is, well, underground.

The aging of the 77 million Boomers is one reason that the health care sector has fared so well recently. The Standard & Poor's health care index has gained 12.9% the past 12 months, vs. 2.7% for the S&P 500 with dividends reinvested. But there are other reasons to be bullish on health care, too, ranging from dividend payouts to mergers and acquisitions to the Affordable Care Act.