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%.

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.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCY
NWH.UN$9.571,045$0.80$836monthly

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.

COMPANY52-WEEK HIGH PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
NWH.UN$14.421,045$0.80$836monthly$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.

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.

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