This Top-Notch REIT is 42% Off its 52-Week High: Don’t Wait to Buy

This REIT is a solid choice on the TSX today if you’re looking for passive income that lasts, and a huge discount on a strong stock.

| More on:
Volatile market, stock volatility

Image source: Getty Images

There are a few stocks out there that offer a huge opportunity on the TSX today. Though it can be hard to decipher which will rebound quickly, and which are down perhaps for good. Yet, when it comes to this real estate investment trust (REIT), it’s one I wouldn’t wait to buy.

Down 42%, buy NorthWest REIT

NorthWest Healthcare Properties REIT (TSX:NWH.UN) offers a stellar chance to get in on both huge returns and dividends on the TSX today. There are a few reasons that I’ll get into here, but first and foremost we’ll start off with the value presented.

NorthWest REIT shares are currently down by 42% from its 52-week highs as of writing. That high was hit about a year ago, and the stock has been slumping ever since. This offers investors huge value, as the stock is trading at just 0.8 times book value.

Now, let’s get into some of the reasons why you would want to pick up this REIT now, and hold onto it for decades.

Yes, decades

Sure, it will be nice when NorthWest REIT recovers to 52-week highs. That will happen in the future. However, if you’re investing in the company, there are other reasons I would pick up this stable stock.

The stability, for one, comes from the healthcare sector. This is a sector that simply isn’t going anywhere. Yet, while you certainly could invest in a company that offers the next new big thing in drugs, you would do far better investing in healthcare properties themselves.

NorthWest REIT invests in every type of these properties, from office buildings to hospitals, providing exposure all over the world. Further, these properties have lease agreements that average 14 years, and with a current occupancy rate at a whopping 97%, the only word you can think of to describe it is stable.

And while other REITs might be sinking, earnings from NorthWest show the stock continues to thrive. Revenue increased 23% year over year in the last quarter, with assets under management (AUM) up 18.5% to $10.9 billion.

Now, the dividend

NorthWest REIT definitely offers a lot of reasons to pick up the company today, especially if you plan to hold for the next several years. However, I would understand if you’re an impatient investor wanting more cash coming in. So, of course, that’s again why NorthWest stock deserves consideration.

NorthWest REIT currently offers a dividend yield at 9.48%. That comes out as $0.80 per share on an annual basis. Below you can see then what an investment of $10,000 would bring in as of writing, compared to 52-week highs.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCY
NWH.UN – now$8.181,222$0.80$977.60monthly
NWH.UN – highs$14714$0.80$571.20monthly

As you can see, you’ll receive almost double the amount of passive income each and every month should you choose to invest in NorthWest REIT right now. That’s with the same money you would have invested just a few months before. So take the opportunity and pick up NorthWest REIT while it remains down 42% while you can.

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

Close up shot of senior couple holding hand. Loving couple sitting together and holding hands. Focus on hands.
Dividend Stocks

Here’s the Average CPP Benefit at Age 70 in 2024

Canadian retirees can supplement their CPP payout by investing in blue-chip dividend stocks such as Enbridge.

Read more »

Gas pipelines
Dividend Stocks

Is Enbridge the Best Dividend Stock for You?

Enbridge now offer a dividend yield of 8%.

Read more »

STACKED COINS DEPICTING MONEY GROWTH
Dividend Stocks

How Long Would It Take to Turn $20,000 Into $100,000 With TSX Dividend Stocks?

Here's how a historical investment in TSX dividend stocks would have fared.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

Passive Income: How Much Should You Invest to Earn $100 Every Month

Want to earn an extra $100 per month in investment passive income? Here's how much cash you would need to…

Read more »

Canadian Dollars
Dividend Stocks

Buy 1,430 Shares of This Super Dividend Stock for $1,000/Year in Passive Income

Here's how to generate $1,000 in annual passive income with Dream Industrial REIT (TSX:DIR.UN) stock.

Read more »

A worker gives a business presentation.
Dividend Stocks

Ranking Inflation Rates in Canada: How Does Your City Stack Up?

Inflation rates stoked higher for some cities, but dropped for others. So let's look at how your city stacked up,…

Read more »

Doctor talking to a patient in the corridor of a hospital.
Dividend Stocks

Inflation Is Up (Again): What Investors Need to Know

Inflation ticked higher in Canada this month, but core inflation was lower. Here's how investors can take advantage during this…

Read more »

Happy family father of mother and child daughter launch a kite on nature at sunset
Dividend Stocks

Want to Make $10,000 in Passive Income This Year? Invest $103,000 in These 3 Ultra-High-Yield Dividend Stocks

Can you earn $10,000 in passive income in 2024? You can by investing $103,000 in these ultra-high-yielding stocks.

Read more »