For $1,000 in Monthly Passive Income, Buy 14,925 Shares of This Canadian Healthcare REIT

Investors looking to earn $1,000 in monthly dividend income can consider buying shares of Northwest Healthcare REIT in 2023.

| More on:
A doctor takes a patient's blood pressure in a clinical office.

Source: Getty Images

Investing in high-yield dividend stocks can help you earn a passive stream of income. A few TSX stocks also pay shareholders a monthly dividend, which can be used to pay your utility and gas bills. Alternatively, these payouts can be reinvested to buy additional shares of the company and benefit from a higher payout over time or to diversify your equity portfolio by purchasing other quality stocks.

One high-dividend stock trading on the TSX is NorthWest Healthcare REIT (TSX:NWH.UN). The real estate investment trust (REIT) operates in the healthcare sector, which is fairly recession resistant, allowing it to generate cash flows across economic cycles and maintain its dividend payout.

NorthWest Healthcare REIT$9.7214,925$0.067$999.975Monthly

NorthWest Healthcare pays investors a monthly dividend of $0.067 per share, indicating a forward yield of 8.3%. While the REIT has a juicy dividend yield, let’s see if the healthcare company should be part of your portfolio in 2023.

Is NorthWest Healthcare REIT a buy or sell right now?

Investing in NorthWest Healthcare Properties will provide you with access to several quality cash-generating assets in the Americas, Asia-Pacific, and Europe. In fact, NorthWest Healthcare invests and operates in some of the fastest-growing urban centres globally.

These properties include core infrastructure hospitals, ambulatory care centres, specialty hospitals, rehabilitation centres, and other healthcare-related assets.

Its base of tenants are hospital operators and healthcare practitioners who also benefit from direct or indirect government funding. NorthWest Healthcare explained, “The demand for our healthcare partners’ essential services, and the space to house these services, is expected to continue to increase with aging populations and increased urban migration.”

Similar to most other REITs, NorthWest Healthcare aims to grow via accretive acquisitions. It currently owns and operates 233 properties totaling 18.6 million square feet and enjoys an occupancy rate of 97%. It has more than 2,000 tenants with a weighted average lease expiry of 14 years, providing investors with enough visibility into the company’s earnings.

Why should you invest in this Canadian REIT?

NorthWest Healthcare ticks most of the boxes that income investors look for. It can be considered a defensive asset class with necessity-based tenancies. The majority of its clients enjoy government funding allowing the REIT to capitalize on strong healthcare trends.

In the first three quarters of 2022, NorthWest Healthcare reported revenue of $330.28 million compared to revenue of $278.2 million in the year-ago period. Its gross book value has increased to $8.28 billion at the end of the third quarter compared to $7 billion in December 2021.

NorthWest Healthcare also offers you an opportunity to diversify your portfolio, as it provides investors exposure to sectors such as real estate and healthcare. Typically, real estate investments, such as buying a house, requires huge amounts of capital and might generate annual yields of less than 5%. But this REIT offers you a much higher yield with a small amount of capital.

The Foolish takeaway

To earn $1,000 in monthly passive income, you would have to buy 14,925 shares of NorthWest Healthcare REIT, which would cost you a whopping $145,000. As dividend payouts are not guaranteed, it makes sense to identify similar high-yielding stocks and create a robust portfolio of income-generating companies.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Dividend Stocks

retirees and finances
Dividend Stocks

Retirees: 3 Ideal Stocks to Buy in a Bearish Market

Given their low-risk businesses and stable cash flows, these three Canadian stocks are ideal buys for risk-averse retirees.

Read more »

data analyze research
Dividend Stocks

3 Dividend Powerhouses to Buy for Reliable Passive Income

Are you seeking passive income? These three Canadian stocks are reliable investments for generate steady income.

Read more »

dividends grow over time
Dividend Stocks

For a Shot at $6,000 in Yearly Passive Income, Buy These 2 TSX Stocks

Canadian investors can make some nice passive income from parking money they don't need for a long time in high-yield…

Read more »

Man making notes on graphs and charts
Dividend Stocks

2 No-Brainer TSX Stocks to Buy (Especially if There’s a Market Correction)

No matter what is happening in the stock market, these two blue-chip stocks could be reliable investments to own.

Read more »

money cash dividends
Dividend Stocks

1 of the Smartest Stocks to Buy for Dividends and Share Repurchases in 2023

Dividend stocks like Power Corp of Canada will have an excellent year.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

3 Canadian Dividend Stocks I’d Buy Hand Over Fist This Month

Three high-quality dividend stocks can overcome the current headwinds and negative market sentiment in March 2023.

Read more »

Happy diverse people together in the park
Dividend Stocks

TFSA: 2 Stocks to Create Lasting Generational Wealth

Stock investing can help Canadians accumulate and grow generational wealth that they can pass on to their children and grandchildren.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Sitting on Cash? Invest $20,000 in This Dividend Stock for $96,588 in 10 Years

This top dividend stock has quadrupled in share price in just a decade, and that could very well happen again!

Read more »