A great dividend stock found at the right time can be a game changer for investors. Putting just a little aside on a regular basis can create a superior amount of income, even as much as $500 per month!
Right now is an excellent time to find such a dividend stock on the TSX today. There are many areas, such as the real estate sector, that continue to trade down. But perhaps the best opportunity is with NorthWest Healthcare Properties REIT (TSX:NWH.UN).
Why NorthWest REIT?
If you’re an investor wanting to create dividend income, it doesn’t get much better than this dividend stock. The real estate investment trust (REIT) currently offers a 12.29% dividend yield — far higher than the national average dividend yield of 2.02%.
These dividends have remained reliable since coming on the market, with a commitment to paying out dividends to shareholders. While the dividend itself has yet to increase, there are certain factors that could lead investors to think that this might be in the future. This includes the growing portfolio of healthcare properties, rising occupancy rates, and rising rents.
Furthermore, NorthWest REIT is a safe investment because it invests in healthcare properties. This is an essential business that won’t crash, even during a downturn. You’ll therefore continue to generate income from properties no matter what the market does.
Then there’s earnings
Some other factors to consider are the company’s earnings. Now, it’s important to note that Northwest REIT experienced more of a drop in share price after an investor for a joint venture in the United Kingdom fell through. Investors were frustrated that a new stream of income wasn’t coming their way.
Even so, NorthWest REIT continues to hold a moderate amount of debt and overall has a good track record of debt management. And again, thanks to the healthcare industry, it’s in a relatively stable industry and isn’t expected to see a drop in renters or lease agreements.
Overall, it continues to hold a solid 14-year average lease agreement as well as a 97% occupancy rate as of writing. Shares are down 47.34% in the last year, with the stock trading at just 4.36 times earnings. That’s far lower than the average of 16.8 times earnings in the last five years.
Create income now!
If you’re looking to create $6,000 in annual income, or $500 each month, then now is the time. NorthWest REIT is cheap, with a long and stable future of growth and income ahead. Here is how much it would cost to create $500 in monthly income now versus at 52-week highs.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND (ANNUAL) | TOTAL PAYOUT (ANNUAL) | FREQUENCY | TOTAL COST |
| NWH.UN – now | $6.53 | 7,500 | $0.80 | $6,000 | Monthly | $48,975 |
| NWH-UN – 52-week highs | $13.42 | 7,500 | $0.80 | $6,000 | Monthly | $100,650 |
As you can see, wait for a recovery, and you could pay double the price you would enjoy now. Put that dividend stock to work!
