Monthly Income: Why NorthWest Healthcare (TSX:NWH.UN) Is a Must-Buy Now

If you want monthly income that lasts a lifetime, the healthcare sector offers one of the best dividend stocks money can buy to date!

| More on:

The healthcare industry is one of those industries that really isn’t going anywhere. However, within that industry, there are a lot of ways to invest. During the COVID-19 pandemic, it became apparent that the one area where investors should look is with healthcare properties.

While real estate investment trusts can be great, NorthWest Healthcare Properties REIT (TSX:NWH) became one of the best dividend stocks to look for monthly income.

NorthWest stock has become one of the most attractive income stocks if you’re a dividend investor. Apart from a high dividend yield, it has several growth projects in the works that should have investors drooling.

So let’s look at why you should consider this one of the best dividend stocks to buy today.

Making headlines

NorthWest stock has been on the headlines again and again, mainly for the same reason: acquisitions. The company has been buying up healthcare properties all over the world. The most recent purchase was the $200 million acquisition of medical office buildings in the Netherlands. This was after a $2.6 billion acquisition of the Australian Unity Healthcare Property Trust.

This purchase adds 62 hospitals, medical office buildings, and other healthcare facilities to the company’s growing portfolio. It is 98% occupied, with an average lease expiry of 16 years, and a rent growth of 2.5%. The purchase comes with a development pipeline worth $500 million in Australian currency. This acquisition alone makes it one of the best dividend stocks as revenue comes in.

More to come?

NorthWest stock doesn’t seem to be stopping any time soon when it comes to acquisitions. The company recently announced a public offering worth over $201 million. This would be in part to help pay for current acquisitions, but also for further acquisitions down the line.

This year alone saw the company raise about $280 million in new equity and reduced leverage, with new acquisitions in Canada and Europe. It now has strong momentum in its global asset management initiatives as well.

The future outlook remains strong as well, as the company eyes not just becoming one of the best dividend stocks but also the leading healthcare real estate asset manager in the world. It’s been expanding and is now eyeing the United States, a major hurdle to strengthen its balance sheet.

Accelerating opportunities

And remember, this was all being done during the COVID-19 pandemic. NorthWest stock proved itself as a strong company, with all properties open and operational to date. The REIT collected 98.6% of rents, improving from last year but only slightly. That’s good news, as it shows the company could continue to collect payment even during a pandemic.

What’s more, the company showed that it can gain government commitment to ensure everyone has access to healthcare services. This means when other REITs are down, NorthWest stock remains strong. So it’s little wonder the company didn’t come close to slashing its dividend, and may soon increase it as well.

That comes from the acquisitions, growing backlog of non-essential treatments and surgeries, and increase in demand for acute healthcare services going forward. NorthWest stock now boasts a 16.2% increase in assets under management over last year, along with a 2% increase in net asset value.

But now, the dividend

This company remains one of the best dividend stocks because of its, well, dividend. It’s a cheap stock with a solid growth strategy and investors should be buying it up in bulk. It’s a solid long-term investment, with a 6.19% dividend yield for today’s investor.

All at a price-to-earnings ratio at an incredible 9.66. So this is one stock you simply don’t want to miss out on.

Fool contributor Amy Legate-Wolfe owns shares of NorthWest Healthcare Properties REIT. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.

More on Dividend Stocks

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Use a TFSA to Earn $500 a Month With No Tax

Earning $500 a month tax-free through the TFSA is a realistic goal for many Canadians.

Read more »

dividends can compound over time
Dividend Stocks

1 Magnificent TSX Dividend Stock Down 25% to Buy and Hold for Decades

This TSX dividend giant could reward patient investors with decades of growth and income.

Read more »

Business success of growth metaverse finance and investment profit graph concept or development analysis progress chart on financial market achievement strategy background with increase hand diagram
Dividend Stocks

5 TSX Dividend Stocks to Hold for the Next Decade

Are you looking for dividend stocks that can last a decade or more to come? These are five top TSX…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

5 Canadian Stocks I’d Buy If I Wanted Instant Income

These Canadian stocks have durable payout history and are supported by fundamentally strong businesses with resilient earnings.

Read more »

top TSX stocks to buy
Dividend Stocks

3 Canadian Stocks That Could Outperform if Growth Stays Soft

Soft growth can still reward investors, if you own businesses with durable demand, solid finances, and income while you wait.

Read more »

engineer at wind farm
Dividend Stocks

TFSA Investors: 1 Top Canadian Stock Worth Buying With $7,000

An outperforming, defensive dividend stock is worth buying with $7,000 for a TFSA portfolio.

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

The #1 Index Fund I’d Hold in My Portfolio Forever — No Hesitation

Anchor your portfolio forever with the XDIV ETF – a low-cost ETF that delivered 13.6% in annual returns and pays…

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

A Reasonably Priced Safety Stock That Canadian Retirees Might Want to Know About

CN Rail (TSX:CNR) is starting to get too cheap to pass up for value investors.

Read more »