Investors planning to invest in Canadian dividend stocks for passive income could consider Northwest Healthcare Properties REIT (TSX:NWH.UN). It currently offers a high yield and pays monthly cash, making it an attractive option for income investors. Moreover, this TSX stock is focusing on streamlining its business and delivering stable and sustainable growth in the long term, which will support its future payouts.
With this background, let’s look at this real estate investment trust (REIT) and ascertain how it can ensure $1,000 in passive income with a $12,650 investment.
Why invest in Northwest Healthcare?
Northwest owns and operates a diversified portfolio of high-quality healthcare properties. Its portfolio includes hospitals, medical offices, outpatient centres, and specialized healthcare facilities. With a focus on the cure segment of the healthcare real estate market, which remains relatively immune to macro challenges, Northwest is well-positioned to generate consistent income, supporting its payouts.
Moreover, Northwest is enhancing its portfolio through strategic asset dispositions, a move designed to streamline operations and ensure long-term stability. These strategic moves are helping the company strengthen its financial position and lay the groundwork for sustainable growth and long-term shareholder value.
Additionally, Northwest Healthcare has impressive operational metrics, including a high occupancy rate, strong rent collection, and solid same-property net operating income (NOI), all of which support its consistent dividend payouts.
Northwest stock currently offers a monthly dividend of $0.03 per share, reflecting a high yield of 7.9%.
The road ahead for Northwest Healthcare
Northwest Healthcare continues to show resilience and growth, even amid macro challenges. In the third quarter (Q3) of 2024, the company’s same-property NOI grew by 5%. Further, the company’s portfolio occupancy rate stood at 96%.
Besides its high occupancy rate, Northwest Healthcare benefits from its long weighted average lease expiry term of 13.4 years. The long-term agreements add stability to its cash flows. Further, with over 86% of leases tied to rent indexation, the company is poised to grow organically. Northwest Healthcare has a high global rent collection rate of 99% and a diversified tenant base of over 1,740 (as of September 30, 2024). These metrics show that the REIT is poised to deliver solid growth in the coming years, ensuring steady payouts.
The company is also progressing well with its asset disposition and balance sheet improvement strategies. These initiatives have enabled accelerated debt repayment and a streamlined business structure, further enhancing financial stability.
The healthcare real estate sector remains a solid asset class with strong demand drivers. Healthcare facilities, supported by government funding and long-term inflation-indexed leases, offer stability and long-term cash flow potential. Moreover, an aging population and the sustained need for healthcare services will likely drive demand for Northwest’s real estate.
Earn $1,000 in passive income
Investing in Northwest Healthcare Properties REIT can be a smart move for those seeking steady passive income. The high yield and monthly payouts make it an attractive option, while the company’s strategic focus on growth and stability supports its long-term appeal. The REIT is progressing well in monetizing assets, lowering debt, and improving operating performance. These efforts will likely create a more resilient healthcare REIT.
The table shows that if you invest $12,650 in Northwest Healthcare stock, you could earn a monthly dividend of $83.76 or over $1,000 annually.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
| Northwest Healthcare REIT | $4.53 | 2,792 | $0.03 | $83.76 | $1,005.12 |
