The top dividend stocks are attractive investments to generate regular cash. Moreover, there are Canadian stocks that pay cash every single month and offer high yields. Investing in these stocks can boost the income-generating capacity of your portfolio.
Moreover, the high frequency of their payouts makes them compelling. Unlike quarterly dividends, monthly distributions provide investors with regular cash flow, making it easier to reinvest and compound returns over time. This reinvestment advantage, when paired with a high yield, can significantly enhance long-term total returns.
Against this background, here is a TSX stock that offers a 7.3% yield and pays cash every month.
Top Monthly Dividend Canadian Stock
While several Canadian stocks pay monthly dividends, Northwest Healthcare Properties REIT (TSX:NWH.UN) stands out for its portfolio of high-quality healthcare real estate that generates solid same-property net operating income (SPNOI), supporting its regular payouts.
Northwest Healthcare Properties owns and operates a diversified range of high-quality healthcare facilities in major domestic and international markets. The real estate investment trust (REIT) focuses on the cure segment of healthcare real estate, including properties such as hospitals, outpatient centers, and multi-tenant medical office buildings.
This sector is considered highly defensive due to its essential nature and the stability of its tenants, many of whom are large hospital operators or medical practitioners supported directly or indirectly by government funding. Moreover, the aging population and increasing demand for infrastructure continue to support healthcare real estate.
Notably, with long-term contracts and inflation-indexed rents, the REIT generates steady SPNOI, which provides resilience against inflationary pressures and economic uncertainties. Northwest Healthcare pays a monthly dividend of $0.03 per share, totalling $0.36 annually. Based on a recent share price of $4.92, this represents a forward yield of 7.3%.
Northwest Healthcare will sustain its payouts
While Northwest Healthcare is not entirely immune to external economic headwinds, such as geopolitical tensions, tariffs, and inflationary pressures, its strategic lease structures and solid capital management position it well to sustain its growth.
The REIT effectively mitigates the risks with inflation-linked lease agreements and long-term tenant commitments. Its solid fundamentals are reflected in consistently high cash collections, occupancy rates above 96%, and an impressive average lease term of 13.6 years. These metrics support its SPNOI and dividend payouts.
Further, the steady demand for healthcare services supports the REIT’s growth. With an aging population in its core markets, demand for healthcare services is growing. This demographic tailwind translates into increased healthcare spending and utilization, supporting a favourable long-term outlook for Northwest Healthcare’s high-quality portfolio.
Northwest remains focused on optimizing its asset base. It continues to explore opportunities to reduce leverage and strengthen its balance sheet through selective sales of non-core assets. However, the REIT is adopting a measured approach amid the elevated interest rates and macro uncertainty. Rather than rushing to sell, it evaluates each property’s performance and income potential, choosing to hold assets with strong yields and occupancy as market conditions aren’t ideal for divestment.
Final thoughts
With a high-quality real estate portfolio, strong lease fundamentals, and a generous 7.3% yield, Northwest Healthcare Properties REIT is a compelling choice for investors seeking steady monthly income. Its focus on essential healthcare infrastructure, backed by reliable tenants and inflation-protected leases, provides a strong foundation for consistent growth.
At its current price of around $4.92 per share, an investment of $24,600 would allow you to purchase roughly 5,000 shares. Based on the REIT’s current distribution rate of $0.03 per share, that investment will generate $150 in monthly income.
| Company | Recent Price | Number of Shares | Dividend | Total Payouts | Frequency |
| Northwest Healthcare Properties REIT | $4.92 | 5,000 | $0.03 | $150 | Monthly |
