If you want to create a reliable stream of monthly passive income in Canada and haven’t tried dividend stock investing yet, you may be missing out on a potentially lucrative opportunity. Dividend investing has already made what was once a dream for many individual investors today’s reality. And it can do that for you, too, by helping you earn healthy passive income each month. If you don’t know how to go about it, I’ll give you an example of an amazing TSX dividend stock in this article that can help you generate monthly passive income for years.
Earn reliable monthly passive income in Canada
Whether you’re investing in stocks to multiply your hard-earned savings or to generate reliable monthly passive income, the rule is simple: you should always look for companies with strong fundamental growth prospects.
Speaking of stocks with strong fundamental growth prospects, I find the shares of NorthWest Healthcare Properties REIT (TSX:NWH.UN) quite attractive at the moment — especially after they’ve gone through a sharp correction in 2022. NorthWest currently has a market cap of $2.2 billion, as its stock trades at $9.35 per share with about 32.3% year-to-date losses. This performance is far worse than the S&P/TSX Composite Index’s 9% year-to-date losses. At the current market price, this TSX dividend stock offers an attractive annual yield of around 8.6% and distributes its dividend payouts on a monthly basis. Now, let me quickly give some key reasons that could make its stock rally in the long term.
What could help this TSX monthly dividend stock rally?
As its name suggests, NorthWest REIT focuses mainly on operating in the healthcare-related real estate segment. The company has interests in a large portfolio of 233 income-generating healthcare assets globally with a gross leasable area of 18.6 billion square feet, including in the Americas, Europe, and Asia-Pacific.
To give you an idea about the underlying strength of its business model, NorthWest’s total revenue rose by 35% in five years between 2016 and 2021. More importantly, its adjusted earnings during the same five-year period jumped by 231%, supported nearly by a sharp increase in rentals for healthcare properties in the last few years. I expect this rental growth to continue in the long term as more nations than ever are committing to significantly improve their healthcare infrastructure in the post-pandemic era. Given that, you can expect healthy appreciation in the share prices of Northwest Healthcare REIT over time, making this TSX monthly dividend stock worth considering on the dip.
|COMPANY||RECENT PRICE||NUMBER OF SHARES||DIVIDEND||TOTAL PAYOUT||FREQUENCY|
|NorthWest Healthcare Properties REIT||$9.35||10,000||$0.06667||$667||Monthly|
|Prices as of Dec. 20, 2022|
If your risk appetite allows you to buy about 10,000 shares of NorthWest right now, you can expect to earn $667 in monthly passive income from its reliable dividends. These monthly dividends would equal slightly more than $8,000 per year. But to buy these many shares at the current market price, you’ll have to pour $93,500 into its stock. With this example, now you know how you can easily make monthly passive income from dividend investing. However, you must always consider diversifying your stock portfolio by adding more such quality TSX dividend stocks to it instead of investing such a huge sum of money in a single stock.