This 10% Dividend Stock Pays You Every Month!

Northwest Healthcare Properties REIT (TSX:NWH.UN) is a defensive dividend stock that offers huge monthly income right now.

Ambrose O'Callaghan

Ambrose O'Callaghan graduated with a BA in Political Science from McMaster University. After that, he jumped into the banking world. He worked from the front line to an investment associate role. After that, he found a way to marry his experience and knowledge in the world of banking and finance to his love and passion for writing. Ambrose is a passionate believer in Warren Buffett's value investing model.

Published June 15, 2023 11:30 am EDT

| More on: NWH.UN

A real estate investment trust (REIT) is an investment vehicle that allows individuals to invest in large-scale, income-producing real estate that varies across the sectors offered by the particular security. The Northwest Healthcare REIT (TSX:NWH.UN) remains one of my top targets in this space on the S&P/TSX Composite Index.

Today, I want to explore why this dividend stock is one I’m happy to own as it pays out a hefty monthly stipend. Let’s jump in.

Here’s why this is still one of my favourite REITs to target on the TSX

The Northwest Healthcare REIT is a Toronto-based company that owns and operates a global portfolio of high-quality healthcare real estate. Shares of this REIT have dropped 2.5% month over month as of close on June 14. Moreover, this stock is down 15% so far in 2023. Despite its recent struggles, I’m still bullish on this dividend stock for the long haul.

This REIT performed well in the face of the COVID-19 pandemic. At the time, investors were eager to own shares in a company that offered exposure to health care real estate around the world. While the pandemic may now be behind us in most respects, investors should not turn their back on the healthcare space. On the contrary, and aging population in the developed world means that demand for facilities and care is set to erupt in the years and decades ahead.

Should investors be happy with its recent earnings?

Northwest Healthcare released its first-quarter fiscal 2023 earnings on May 12. The company noted that it had made good progress to snatch up a majority stake in a major United Kingdom-based healthcare REIT. That is expected to close later this month. Beyond this upcoming deal, Northwest Healthcare put together a strong overall quarter that should please investors who are on the hunt for big income and a defensive dividend stock in the face of increasing volatility.

In the first quarter of fiscal 2023, Northwest achieved revenue growth of 29% year over year to $135 million. Meanwhile, same-property net operating income (NOI) increased 4.4% to $74.3 million. It delivered its strongest same property NOI in Europe and Australasia. Moreover, the REIT posted strong portfolio occupancy of 97% while its international portfolio held at a very strong 98.2%. Total assets under management (AUM) climbed 13% from the previous year to $10.8 billion. The number of properties rose to 233 compared to 202 in the first quarter of fiscal 2022.

How this dividend stock can churn out monthly income for you right now!

Northwest Healthcare REIT currently pays out a monthly dividend of $0.067 per share. That represents a monster 10% yield. This dividend stock closed at $7.70 per share on Wednesday, June 14. As a hypothetical, let’s say we have about $5,000 to work with right now. We can snatch up 650 shares of this REIT for a purchase price of $5,005. This investment means we can generate monthly income of $43.55 going forward. That works out to annual income of $522.60. Not bad for a $5,000 investment.