Income investors consider Whitecap Resources (TSX: WCP) and NorthWest Healthcare Properties (TSX:NWH.UN) cash kings not only for their high dividend yields but also for the payout frequency. The energy stock and real estate investment trust (REIT) pays monthly dividends, not quarterly.
Monthly dividends are helpful to income-oriented investors with cash flow and budgeting needs or who are building a nest egg. You can manage your finances and incorporate the dividends into your monthly budget. For long-term financial goals like retirement, reinvesting dividends 12 times a year instead of four will compound your capital faster.
Sustainable, profitable growth
Whitecap Resources is the remaining monthly income stock in the energy sector. Pembina Pipeline and Keyera switched from monthly to quarterly payments starting in 2023. At $9.40 per share, current WCP investors are up 6.71% year to date and feast on the 6.83% dividend.
This $5.62 billion oil & gas company is growth-oriented and operates in the Montney resource play in Northwest Alberta (West Division). The liquids-rich assets in Central Alberta and resource light oil play in West Saskatchewan form its East Division.
In 2023, total revenue (petroleum and natural gas) and net income declined 20.2% and 47% year over year to $3.55 billion and $889 million versus 2022. Nevertheless, management’s message to shareholders said it was a strong year, operationally and financially.
Besides the 11% production per share growth, net debt declined 27.7% to $1.38 billion from a year ago. The board approved a 26% increase in the dividend base, the seventh hike in three years. Whitecap promises to continue improving capital efficiencies and netbacks for increased profitability.
The highlight of the operational success was the strong year-end reserve values following the implementation of a consolidation strategy in late 2020. Moreover, the identified 6,400 drilling locations in inventory should provide more than 25 years of sustainable and profitable growth.
For 2024, Whitecap expects a capital budget between $900 million and $1.1 billion that should result in an 8% production per share growth (165,000 to 170,000 barrels of oil equivalent per day). Despite the lower capital budget versus 2023, management sees another strong operational execution this year aided by the technical enhancements last year.
Steward of healthcare real estate
NorthWest Healthcare Properties is the only REIT in the cure segment of the healthcare real estate spectrum. The $1.05 billion landlord owns and operates international healthcare real estate infrastructure. Today, this Canadian REIT is known as the steward of a diversified portfolio of healthcare real estate.
As of this writing, the stock trades at a deep discount (-16.17% year to date) if compared to its strong performance during the COVID year. However, at $4.17 per share, you can partake in the mouth-watering 8.37% dividend. A $7,000 investment will produce $50.93 in monthly passive income.
NorthWest partners with healthcare operators and healthcare practitioners and is present in eight countries. The portfolio consists of hospitals and healthcare facilities (62%), medical office buildings (36%), and Life Sciences, Research, and Education segments (2%). Apart from the strong demand for essential healthcare services, the aging population and increased urban migration are plus factors for the REIT.
Cash kings
Only genuine cash kings can give investors the best of both worlds. Whitecap Resources and NorthWest Healthcare pay generous dividends and deliver monthly income streams.
