I Don't Think I'll Ever Stop Buying This Dividend Stock Yielding 8.51%

I Don’t Think I’ll Ever Stop Buying This Dividend Stock Yielding 8.51%

This dividend stock continues to be my favourite passive income payer, and I’ll continue to drip feed into it even while shares are down 25%.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 7, 2023 5:00 pm EST

| More on: VITL.UN

I’ll often look at the TSX today and think, “Wow, look at how that stock’s performing! Should I buy it?” But then, I’ll remember. Short-term holds are never the clear path to success. Instead, it’s feeding into long-term holds. And finding a great dividend stock is one way to achieve this.

Yet among the investments I have, there’s one dividend stock I’ll continue to buy again and again. And probably always will. NorthWest Healthcare Properties REIT (TSX:NWH.UN)

Why NorthWest?

Honestly, I could say that the company’s high dividend yield is the reason I invest in NorthWest stock again and again. But that’s not true. It doesn’t matter if the company I invest in has a high dividend yield if that dividend could be cut at a moment’s notice.

And that’s why I like NorthWest stock. It’s in the stable and solid healthcare sector on the TSX today. Healthcare stocks continue to be recommended by economists during downturns. That’s because no matter what happens, hospitals stay open. Family doctors continue to have appointments. Your health is always a concern, no matter what the market does.

But I also invest in NorthWest stock because it’s proven that there is still growth in the healthcare sector. The dividend stock continues to expand by acquiring properties and even other healthcare trusts. So while it’s in a stable industry, it’s certainly not boring.

Continues to be a steal

I continue to purchase shares of NorthWest stock by drip feeding into the dividend stock. This is where I’ll consistently purchase shares of the company again and again on the TSX. That way, even if shares drop (which they have), I can be confident I’m merely getting a deal at this point. When shares recover (which they will), I’ll have made more money in returns!

And right now continues to be a great time to consider this dividend stock. It currently trades at 8.1 times earnings as of writing. This means it has a dividend yield at 8.51% right now! That comes out to $0.80 per share, and means you can pick up a boatload of shares for a small price.

How much are we talking? Let’s say you have $10,000 to put towards NorthWest stock right now. Below you can find how much that would make you each year.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY
NWH.UN	$9.57	1,045	$0.80	$836	monthly

More to come

Here’s the thing, that’s a lot of cash each year dished out monthly. But now let’s look at what you could make in a year from now. Should shares return to former 52-week highs, that means you’ll have even more income coming your way through returns.

COMPANY	52-WEEK HIGH PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
NWH.UN	$14.42	1,045	$0.80	$836	monthly	$15,068.90

As you can see, now you’ve made $5,068.90 in returns alone. Add on the passive income from the year and that’s a grand total of $15,904.90! Almost $6,000 in returns in just a year should it return to 52-week highs.

So while shares of this dividend stock might be down by 25% in the last year, I see it for the opportunity it is. I’ll continue to pick up this dividend stock again and again, seeing my shares and returns rise in the process.