Canadian investors looking for monthly dividend stocks might focus a bit too much on a higher dividend yield, and less on risk involved, especially when it comes to real estate investment trusts (REIT). Yet among them, there are certainly monthly dividend stocks that can make the list.
But perhaps at the top of these options is Chartwell Retirement Residences (TSX:CSH.UN). So let’s get into the reasons you’ll want to consider this monthly dividend stock.
The sector
First off, there’s the sector. Chartwell stock is part of the healthcare and retirement/long-term care facilities markets providing essential services that are necessary regardless of economic conditions. The demand for these services tends to remain relatively stable, as people require healthcare and eldercare regardless of economic cycles.
Furthermore, the aging population is a significant driver of demand for healthcare and retirement/long-term care services. As the population ages, there is a growing need for senior housing, assisted living facilities, and long-term care services. This demographic trend provides a reliable source of demand for REITs that own and operate these types of properties.
What’s more, these companies tend to offer long-term lease agreements with their tenants, which provide a predictable stream of rental income. These leases often have built-in rent escalations or inflation-indexed clauses, providing potential for income growth over time.
The specifics
That’s great for the sector as a whole, but when it comes to Chartwell stock the company tends to be a top choice among dividend stocks. Chartwell operates in the stable and growing senior living industry, providing independent living, assisted living, and long-term care services. It has a diversified portfolio of properties across Canada, including retirement residences and long-term care facilities. This diversification helps mitigate risks associated with regional economic downturns or changes in demographics.
What’s more, senior living facilities are considered recession-resistant because the need for housing and care for seniors remains relatively constant regardless of economic conditions. This resilience provides stability to Chartwell’s cash flows and supports consistent dividend payments.
Finally, Chartwell has been focused on growth through acquisitions, development projects, and strategic partnerships. This growth strategy can potentially lead to increased cash flows and dividend payments over time as the company expands its portfolio and enhances its operational efficiency. So investors can gain both returns and dividends.
Monthly payouts
If you want dividends, Chartwell has a history of paying consistent and growing dividends. A reliable track record of dividend payments indicates the company’s commitment to returning value to its shareholders over the long term.
What’s more, Chartwell pays monthly dividends, which can be attractive for income investors looking for regular income streams. Monthly dividends provide investors with more frequent cash flow compared to stocks that pay quarterly or annual dividends.
Right now, the dividend stock offers a 4.98% dividend yield for investors. That dividend stock is also up 32% in the last year as of writing. So if you want a monthly-paying dividend stock, then certainly consider this sector, and this stock, for future growth and income.
