Buy 990 Shares of This Super Dividend Stock for $1,860.70 in Passive Income

This dividend stock continues to provide major passive income through dividends, but has been seeing rising returns as well.

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Looking for income? There are certainly quite a few investments to consider out there. But not all of them offer the superb passive income that comes from both returns and dividends. Which is why today we’re going to look at a stock that offers just that. It’s on the rise, but still offering up a seriously high yield. So let’s get into why investors should consider NorthWest Healthcare Properties REIT (TSX:NWH.UN) on the TSX today.

About NorthWest

Before we get into how much money you could earn from NorthWest real estate investment trust (REIT), let’s get into the company itself. NorthWest stock focuses on healthcare real estate, which tends to be more stable compared to other sectors. Healthcare properties such as hospitals, medical offices, and clinics are generally less susceptible to economic downturns because demand for healthcare services remains relatively constant regardless of the economic climate.

NorthWest has been benefitting from this demand over the last few years since coming on the market. Demographic trends, such as aging populations in many developed countries, drive increasing demand for healthcare services and facilities. What’s more, its portfolio is geographically diversified, which helps mitigate risks associated with regional economic fluctuations. This diversification provides stability and reduces the impact of localized economic downturns on the REIT’s overall performance. 

While NorthWest stock prioritizes stability, it also seeks opportunities for growth through strategic acquisitions and development projects. This approach allows the REIT to capitalize on market opportunities and enhance shareholder value over the long term.

Earnings back up

Part of the issue in the past with NorthWest stock is that its acquisitions created too much debt, and at too high of interest. Since then, the REIT has refinanced at lower rates, allowing it to manage its bottom line once more.

Now, the stock has seen impressive improvements. This included in the fourth quarter when it reported a 4% increase in operating income compared to the same time the year before. Its renewal rate also continued to be at an impressive 87%, with a 97% occupancy rate.

What’s more, it continues to hold a long-term lease agreement average at 13 years, as of writing. This means investors can look forward to contracts that will continue to provide cash flow, funding the dividend as it goes along.

What you could get

Rather than look at the REIT’s former all-time highs, let’s consider that the company continues to perform as it has. Since hitting 52-week lows, shares are now back up 30%. So, let’s consider that shares climb by another 30%, which is certainly doable. In that time, you’ll also be receiving a 7.05% dividend. Given the small share price, investors can certainly make these shares go a long way. So, let’s say you put $5,000 towards NorthWest stock. Here is what might happen.

NWH.UN – now$5.05990$0.36$356.40monthly$5,000
NWH.UN – 30% increase$6.57990$0.36$356.40monthly$6,504.30

In total, investors could achieve $1,504.30 in returns and $356.50 in dividend income. This would total $1,860.70 in passive income this year alone! And that’s really only getting started.

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 Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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