Lining your portfolio with dividend stocks can be very rewarding. Not only do these stocks provide a recurring income stream, but they can also be a source of growth thanks to reinvestments. Stocks that provide that income on a monthly cadence are a rare, but welcome relief to passive income investors.
Fortunately, passive income investors can rejoice as there are multiple monthly income stocks to consider. One such example is Northwest Healthcare Properties REIT (TSX:NWH.UN).
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Meet Northwest Healthcare Properties
As the name implies, Northwest Healthcare is laser-focused on healthcare. The REIT boasts a portfolio of just shy of 200 sites. Those sites are a mix of medical offices, hospitals, clinics and research facilities.
In other words, the REIT offers a highly defensive mix of property types serving the healthcare industry. Northwest Healthcare’s properties are all diversified in different markets. Specifically, the REIT has locations in Canada, Brazil, Germany, Australia, and the Netherlands.
That unique geography provides yet another advantage. The countries where Northwest Healthcare operates have an aging population, which translates into a greater need for the properties the REIT offers.
That geography also plays into Northwest Healthcare’s growth focus. Northwest Healthcare boasts a development pipeline in the billions, catering to the unique needs of each market. The REIT also chose to exit other lesser-performing markets over the past year, such as the UK.
In other words, Northwest Healthcare is targeting high-growth markets with aging populations to fuel long-term growth.
Adding to its already intriguing defensive appeal is another key advantage. The properties are subject to long-term leases, and many of them have rent tied to inflation. This translates into a more sustainable model for the REIT and, by extension, passive income investors.
What about that distribution?
One of the main reasons why passive income investors flock to Northwest Healthcare is its monthly distribution. As of the time of writing, Northwest Healthcare pays out a very generous 7.4% yield, handily making it one of the better-paying options on the market.
To put that yield into context, passive income investors who drop $30,000 into Northwest Healthcare can expect to earn over $185 every month.
| Company | Recent Price | No. of Shares | Dividend | Total Payout | Frequency |
| Northwest Healthcare Properties REIT | $4.86 | 6,172 | $.036 | $2,221.92 | Monthly ($185.16) |
Even better, investors who aren’t yet ready to draw on that income can choose to reinvest it until needed. This will allow that income to continue growing until needed, adding to any eventual nest egg.
Passive income investors: Will you buy this REIT?
REITs can offer passive income investors a lucrative income as well as long-term growth. In the case of Northwest Healthcare, not only does the REIT offer a juicy monthly income, but it can also offer significant long-term growth potential wrapped in a defensive shell.
In my opinion, passive income investors should consider adding a small position in Northwest Healthcare as part of any well-diversified portfolio.
Buy it, hold it, watch it (and your income) grow.
