This 7.6% Dividend Stock Pays Cash Every Month

There are dividend stocks, there are monthly dividend stocks, and then there are those with incredibly stable futures.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 15, 2025 4:00 pm EDT

| More on: VITL.UN

Do you want to earn money without doing much? Dividend stocks can help! NorthWest Healthcare Properties REIT (TSX:NWH.UN) is one such dividend stock. It owns healthcare buildings, pays dividends each month, and can be a nice choice for a steady income.

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About NorthWest REIT

NorthWest Healthcare owns medical offices and hospitals. Its properties are in Canada and other countries. These include Brazil and Australia. Having properties in many places helps lower risk; if one area struggles, others might pick up the slack.

As of writing, the dividend yield is about 7.6%. This is pretty good! If you invest $1,000, you might get $73 each year. This comes in monthly payments, and by comparison, regular savings accounts usually give much less interest. So, this can be more appealing.

Healthcare properties can be more stable than other real estate. People always need healthcare, so demand for medical buildings tends to stay steady. This can make NorthWest Healthcare a reliable income source. Other real estate might not be as stable.

Into the numbers

In its last earnings report, NorthWest Healthcare did well. Its adjusted funds from operations (AFFO) rose by 9% from the last quarter. Compared to last year, this was a rise of 12%. This shows the real estate investment trust (REIT) makes consistent money for investors, thereby supporting the regular dividend payments.

Investors should also look at the payout ratio. This shows how much of the earnings goes to dividends. If the ratio is too high, the company might struggle. If earnings drop, the dividend could be at risk. Right now, NorthWest Healthcare’s payout ratio is quite high at about 300. This suggests the dividends might not be sustainable.

Another thing to check is how much debt the REIT has. Real estate firms often borrow money. Too much debt can be risky, especially if interest rates increase. Looking at the debt compared to equity can give you an idea of financial health. Also, check if they can easily cover their interest payments.

Considerations

However, there are still some risks to consider. Real estate can be affected by interest rate changes. Property values can go up or down. How many buildings are rented out also matters. While healthcare is stable, it’s not totally safe from market changes.

Yet reinvesting dividends can also be a smart move. Many brokerages have plans for this. They let you use your dividend money to buy more shares automatically. This can help your investment grow over time. You earn dividends on your new shares, too!

It’s always wise to spread your investments around. While NorthWest Healthcare has good points, don’t put all your money in one place. Having different types of investments can lower your overall risk. A mix of stocks and other assets can make your portfolio more stable.

Bottom line

In conclusion, NorthWest Healthcare offers a chance for regular income. Its focus on healthcare, good financial results, and high dividend yield are attractive. But remember, all investments have risks. Do your own research. Think about your financial goals before investing.