When it comes to investing, I like companies that pay me handsomely. But I mean this in two ways. Of course, first, there are returns. I want stocks that are going to continue paying me through growth in share price, especially since I tend to edge toward the long-term side of investing.
But I also want stocks that pay me simply as a reward for holding them — and pay me well. This is why today, I’m going to look at two stocks that have done this for years. Those are Brookfield Renewable Partners (TSX: BEP.UN) and NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN). So, let’s get into why.
NorthWest Healthcare REIT
NorthWest Healthcare Properties REIT is a Canadian-based real estate investment trust (REIT) focused on owning and managing healthcare properties globally. The portfolio includes hospitals, clinics, and medical office buildings.
The last few years have been rough for NorthWest REIT, but there have been major signs of improvement. Meanwhile, NWH.UN has shown consistent revenue growth, driven by strategic acquisitions and stable occupancy rates in its properties.
Certainly, the net income has fluctuated due to variations in property valuations and foreign exchange impacts. However, funds from operations (FFO), a key metric for REITs, has been stable, supporting its ability to pay dividends.
Meanwhile, the company offers a dividend yield of approximately 7%, which is attractive for income-focused investors. And now, with debts being repaid and earnings climbing, the dividend stock has been making a comeback. This is why I will continue to collect my monthly dividends.
Brookfield Renewable
Brookfield Renewable Partners is one of the largest publicly traded pure-play renewable power platforms globally, with a diversified portfolio of hydroelectric, wind, solar, and storage facilities. BEP.UN has demonstrated strong revenue growth driven by expanding renewable energy capacity and favourable market conditions.
That strength has been seen through many avenues. For instance, net income is influenced by asset revaluations and operational efficiency improvements. Furthermore, robust cash flow from operations supports the company’s ability to sustain and grow its dividend.
As for the dividend, BEP.UN offers a dividend yield of around 5.85%. While lower than NWH.UN’s yield, it’s still appealing for dividend investors. That dividend has remained stable and indeed growing even as the company has gone through some difficult years.
The renewable energy sector continues to face regulatory hurdles around the world. As a global company, BEP is exposed to these risks. However, over time, the company is set to be a clear winner in the renewable energy market. In fact, it’s already making major partnerships to support its future growth.
Bottom line
For investors seeking high immediate income, NWH.UN offers an attractive dividend yield. However, the high payout ratio and sector-specific risks warrant a cautious approach. It is suitable for income-focused investors with a higher risk tolerance. Meanwhile, I’ll continue to collect my $10 in monthly dividends as it continues to recover.
Brookfield Renewable presents a more balanced option with a sustainable dividend and significant growth prospects in the renewable energy sector. Its robust cash flow makes it a safer bet for long-term dividend investors. Again, I’ll also continue to collect my dividend, which equates to $4.37 each month.
