Among all the possible ways of earning monthly passive income in Canada, dividend investing could be one of the easiest ones. Investing in dividend stocks also gives you the flexibility to choose the amount you want to receive as extra income each month based on your portfolio size and risk appetite. While many dividend-paying companies have seen a sharp correction in their share prices in the last year due to the economic turmoil, this dip could be an opportunity for you to add some trustworthy monthly dividend stocks to your portfolio at a bargain.
In this article, I’ll highlight one such beaten-down Canadian dividend stock that can deliver you $100 in monthly passive income without requiring you to invest a huge sum of money.
A beaten-down monthly dividend stock to buy in Canada
In order to keep your risks low, you should always avoid investing in a business with a weak balance sheet and high debt levels. A high debt level is a risk factor that can become a big obstacle to a company’s growth plans and hurt its stock price movement.
Now, returning to my stock pick for monthly passive income, NorthWest Healthcare Properties REIT (TSX:NWH.UN) could be a great monthly paying dividend stock with a strong financial position and a sizeable asset base. This REIT (real estate investment trust) primarily focuses on the healthcare real estate industry and has a market cap of $2 billion. Its stock currently trades at $8.29 per share after losing more than 40% of its value in the last year and offers a 9.7% annual dividend yield.
In the last year, growing macroeconomic uncertainties have spooked real estate investors. This factor and the recent weakness in NorthWest Healthcare’s profitability are two key reasons for its stock’s poor performance. But its solid underlying growth potential makes it worth buying for the long term. Let me explain why.
Top reasons to buy this stock now
At the end of 2022, NorthWest Healthcare REIT had a strong portfolio of 233 income-producing properties, up from 197 properties at the end of the previous year. With this, it owned a gross leasable area of 18.6 million square feet in key markets, including the United States, Canada, Europe, and Australia. Despite a continued expansion of its high-quality assets base, the occupancy at this open-ended REIT’s properties remained strong at 97% last year.
If a business is facing demand issues, you may not want to invest in it. However, that’s not the case with Northwest Healthcare REIT. The underlying strength of its business model could be seen in its consistently high revenue growth. In 2022, NorthWest posted a solid 20% year-over-year increase in its total revenue to $448.8 million, exceeding analysts’ estimate of $412.5 billion by a wide margin.
As more countries than ever are now shifting their focus to improve their healthcare infrastructure, the demand for NorthWest’s consistently expanding asset base is likely to improve further. This factor should help its financials grow at a faster pace in the coming years and its stock recover.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| NorthWest Healthcare Properties REIT | $8.29 | 1,500 | $0.06667 | $100 | Monthly |
| Prices as of Apr. 20, 2023 |
Earn $100 in reliable monthly passive income
To $100 every month or $1,200 a year from its dividends, you can consider buying 1,500 shares of NorthWest Healthcare Properties REIT. At the current market price, you’ll have to invest about $12,435 to buy these many shares of this monthly dividend stock. That said, you should never forget to diversify your dividend stock portfolio by dividing your investment portfolio into more than one or two stocks to keep your risks low.
