If you want to build lasting, reliable wealth, investments that pay month after month could be your top picks. Traditionally, the term “Dividend King” refers to companies with over 50 years of dividend hikes. However, there are some TSX-listed monthly dividend stocks that, despite not fitting this textbook definition, still behave like royalty.
One such monthly paying income stock, NorthWest Healthcare Properties REIT (TSX:NWH.UN), is currently offering a juicy 7.5% annualized yield. And it’s supported by a track record of generous, consistent payouts that long-term investors love.
Let’s take a closer look at this high-yielding dividend stock’s financials and fundamental outlook. Northwest might not be a formal “King,” but certainly rules when it comes to rewarding shareholders.
NorthWest Healthcare Properties REIT
NorthWest Healthcare owns and manages hospitals, medical office buildings, and clinics across North America, Brazil, Europe, and Australasia – key places where demand for healthcare services is strong and growing.
After rising by over 9% year-to-date, the REIT is currently trading at $4.86 per unit, with a market cap of around $1.2 billion.
What’s driving this monthly income stock higher in 2025
A big reason behind these gains in NorthWest stock could be its recent progress in cleaning up its balance sheet and boosting cash flow. Notably, throughout 2024, the REIT focused on simplifying its operations and strengthening its balance sheet. It sold off $1.4 billion worth of non-core assets, trimmed debt by more than $1.1 billion, and refinanced a big chunk of what remained. This helped reduce interest costs and improve its overall financial flexibility.
All of this translated into better numbers in the latest quarter. For example, in the December 2024 quarter, NorthWest Healthcare’s adjusted funds from operations (AFFO), which is simply the cash it has left over after major expenses, grew 9% over the previous quarter and 12% on a YoY (year-over-year) basis. At $0.10 per unit in the fourth quarter, NorthWest’s AFFO comfortably covered its monthly distributions. That’s a big improvement from recent quarters when the REIT’s payout ratio had stretched over 100%.
Why this REIT could be a keeper
What makes NorthWest an amazing stock for long-term income investors is its large global portfolio of 172 healthcare properties that are 96% occupied with an impressive average lease term of 13.6 years. Nearly all of its rental income is contractually indexed to inflation, giving it built-in protection against rising costs. In today’s uncertain macroeconomic environment, that kind of long-term stability could be difficult to find.
On top of that, NorthWest Healthcare is actively growing its footprint through strategic partnerships and sustainable developments, like its award-winning green healthcare precincts in Australia. The trust is also tightening operations as it cut general costs by 20% over the past year, which should lead to improved profitability.
Given these strong fundamentals, this high-yielding, globally diversified REIT is on the path to regain investors’ confidence. It may not wear the Dividend King crown by definition, but when it comes to monthly income, it certainly walks and talks like royalty.
