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%.

| More on:
stock data

Image source: Getty Images

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.


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.


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.

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 Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Happy diverse people together in the park
Dividend Stocks

Gen Z Investors: How to Make $2.8 Million Before Retirement

Gen Z investors have one thing to their advantage: time. Invest wisely and practically any investment could turn into millions.

Read more »

A plant grows from coins.
Dividend Stocks

The 2 Top Monthly Dividend Stocks for March 2023

These are the top two monthly dividend stocks you can buy in Canada in March 2023.

Read more »

Canadian Dollars
Dividend Stocks

Got $6,500? Earn $48/Month Tax-Free Passive Income

High-dividend-paying Canadian stocks include Diversified Royalty. Let's see how a TFSA investment of $6,500 can help you earn $48 in…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Need $100? The Best Dividend Stocks for Monthly Income

Here are two of the best monthly dividend stocks you can buy in Canada right now for passive income.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

TFSA Investors: Make $100 Per Month With This TSX Dividend Stock

This top TSX dividend stock could help you earn $100/month in tax-free, passive income.

Read more »

Wireless technology
Dividend Stocks

2 TSX Stocks I’d Buy With a Tax Refund

If you have a tax refund coming your way, these two TSX stocks could provide you with stellar long-term income…

Read more »

man window buildings
Dividend Stocks

How to Invest in Retail Stocks When Everyone’s Talking About a Recession

Canadian retail stocks like grocery stores provide stable performance. If you like more yield, you can seek an entry point…

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

The 3 Industrial Stocks That Keep Canada’s Economy Going

Three industrial stocks with solid fundamentals are safer options in the current market environment and should add stability to your…

Read more »