2 High-Yielding Dividend Stocks to Own in 2023

These two REITs can be excellent additions to your self-directed portfolio for high-yielding monthly dividend income.

| More on:
grow dividends

Image source: Getty Images

You can take several possible approaches to stock market investing to grow your wealth. A growth- and income-focused, well-balanced portfolio is essential to achieving long-term success as a stock market investor.

When the market is bullish, growth stocks offer outsized wealth growth through capital gains. When the market is bearish, high-quality, income-focused stocks offer regular returns, regardless of declining share prices.

Since the market is volatile right now, it might be apt to focus on income-generating assets for your self-directed portfolio. Specifically, we will discuss monthly dividend-paying stocks that you can consider for your portfolio.

When it comes to dividend stocks, high yields are not everything. Stock market investing is risky, and you must do your due diligence to invest in stocks likelier to deliver consistent returns. A stock with a financially strong underlying business is better equipped to continue distributing shareholder dividends in bear markets.

High-yielding dividends might usually be considered worrisome. However, these two real estate investment trusts (REITs) operate in more defensive market sectors, reducing the capital risk involved with investing.

NorthWest Healthcare Properties REIT

NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a $1.98 billion market capitalization REIT that owns, develops, and manages a globally diversified portfolio of real estate properties.

It operates in a niche sector, boasting a portfolio dedicated to tenants in healthcare, research, education, and life sciences. With a focused approach on healthcare-focused assets, it can generate stable, strong, and steady cash flows, regardless of macroeconomic factors.

The average lease agreement in NWH REIT’s portfolio is 14 years. Combined with an impressive 97% occupancy rate, NorthWest Healthcare Properties REIT is in an excellent position to generate substantial cash flows. As of this writing, NorthWest Healthcare Properties REIT trades for $8.22 per share and boasts a 9.79% forward annualized dividend yield, which it pays on a monthly schedule.

Slate Grocery REIT

Slate Grocery REIT (TSX:SGR.UN) is another high-yielding dividend stock you can own for monthly dividend income. The $638.30 million market capitalization trust focuses on acquiring, owning, and leasing a portfolio of diversified commercial real estate properties in the U.S.

As its name suggests, its primary focus is on grocery-anchored retail properties. It has several major retailers under its belt, including Westin Centre, Glenlake Plaza, Bloomingdale Plaza, and many others.

Slate Grocery REIT has been expanding its portfolio for years and has managed to continue doing so amid the pandemic due to the essential nature of its business.

As of March 2023, it has a 93.2% occupancy rate, but it expects the figure to improve, as the trust spends capital to improve its properties. The average lease term for its portfolio is five years, but the weighted average lease term of its portfolio goes up to 30 years if you include all grocer renewal options.

As of this writing, Slate Grocery REIT trades for $13.62 per share and boasts an 8.69% forward annualized dividend yield that it pays at a monthly schedule.

Foolish takeaway

Investing in monthly dividend stocks gives you the opportunity to get returns on a monthly schedule besides wealth growth through any capital gains. You can reinvest what you earn to purchase more shares and accelerate your wealth growth through the power of compounding.

If you want to own shares of high-quality, monthly-income-generating assets, NorthWest Healthcare Properties REIT, and Slate Grocery REIT can be excellent foundations for such a portfolio.

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 Adam Othman 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

Canadian Dollars
Dividend Stocks

Need Passive Income Right Now? Turn $20,000 Into $152 Every Month

This dividend stock may be down now, but offers substantial passive income through its 9.31% dividend yield as of writing!

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

Is Exchange Income Stock a Buy?

Even within an industry, some stocks might be worth considering in certain market conditions, while others may be avoided.

Read more »

Dividend Stocks

2 Top Canadian Value Stocks in June 2023

Canadian Imperial Bank of Commerce (CIBC) stock is a compelling buy in June, and so is this Canadian REIT.

Read more »

Illustration of bull and bear
Dividend Stocks

2 Cyclical Stocks to Buy Before the Next Bull Market

The TSX index has been cyclical in the past 12 months, with neither a bearish nor a bullish trend fully…

Read more »

calculate and analyze stock
Dividend Stocks

Dividend Investors: 4 Canadian Stocks for Many Decades of Payouts

Are you looking for decades of dividends? These four top Canadian income stocks are ideal for steady compounding returns.

Read more »

railroad with nature background
Dividend Stocks

CNR Stock Sagged 2% Last Month: Should You Buy the Dip?

CNR stock has surged 1,760% since June 2003 after adjusting for dividends. But is the TSX blue-chip stock a buy…

Read more »

stock analysis
Dividend Stocks

Just Starting to Invest? The 2 Stocks You’ll Want to Buy and Own for Years

When building your portfolio from scratch as a beginner investor, it's a good idea to play it safe with relatively…

Read more »

Growing plant shoots on coins
Dividend Stocks

3 TSX Dividend Stocks With Lucrative Yields in June 2023

Dividend stocks pay you for holding their shares. Aim to buy at a discount to maximize your income while preserving…

Read more »