Retiring rich isn’t always about chasing the biggest stock wins. For many Canadians, it’s about building stable, consistent income. And what’s more stable than getting paid every month? If you’re dreaming of earning $1,000 per month from a single dividend stock in retirement, NorthWest Healthcare Properties REIT (TSX:NWH.UN) might be the solution. It offers a high dividend yield, monthly payouts, and exposure to healthcare infrastructure, a sector built to last.
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About NWH
This real estate investment trust (REIT) focuses on owning and operating healthcare-related properties. Its portfolio includes hospitals, clinics, and medical offices spread across Canada, Brazil, Europe, and Australasia. These properties are leased to healthcare providers, many of whom operate under long-term agreements. That means predictable rental income for the REIT and consistent returns for investors.
As of writing, NorthWest shares trade at approximately $4.86. The dividend stock offers a monthly dividend of $0.03 per share, which totals $0.36 annually. At this price, that gives the dividend stock a dividend yield of about 7.2%. That’s well above average and makes it one of the more attractive monthly payers on the TSX today.
To earn $1,000 per month, or $12,000 annually, you’d need to own roughly 33,333 shares. Multiply that by $4.86 and you get a required investment of around $162,197. That’s no small amount. But for investors with a long-term plan, it’s an achievable target, especially when paired with regular contributions to a Tax Free Savings Account (TFSA).
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND (yr/share) | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| NWH.UN | $4.86 | 33,333 | $0.36 | $12,000 | Monthly | $162,197 |
Worth the investment?
Let’s look at the business itself. In its most recent earnings report for Q1 2025, NorthWest Healthcare reported revenue of $111.6 million. While this was down from the previous year, the decline was due to strategic asset sales. Importantly, same-property net operating income rose 4.5% to $73.8 million, showing that the core business continues to grow. Adjusted funds from operations (AFFO), a key measure of dividend health, came in at $0.10 per unit. That’s a healthy level, and it supported a payout ratio of 92%, an improvement from 105% in Q1 of the prior year.
The dividend stock has also taken major steps to improve its balance sheet. In recent quarters, it sold over $260 million in non-core assets, including a $209 million sale of its shares in Assura PLC. The proceeds went toward paying down debt, which reduced its leverage to 48.6%. That’s a major positive, especially in a high-interest-rate environment. Less debt means less risk and more flexibility for the company to maintain its dividends.
Like any investment, there are risks to consider. The dividend stock reported a net loss of $15.5 million in Q1 2025, though that was an improvement from a loss of $38.6 million in the same quarter last year. These losses are often tied to asset revaluations or one-time charges, not ongoing operations. Still, it’s something to keep an eye on.
Bottom line
What makes NorthWest especially attractive for retirees is the monthly income. You’re not waiting every three months for a cheque; you get paid consistently, helping to match monthly bills. And if you’re holding that income in a TFSA, it is completely tax-free.
Getting to $162,000 in capital may take time, but it’s doable. With disciplined contributions of say $10,000 per year and reinvested dividends, you could reach your goal in under two decades. You don’t need to start big, you just need to start.
NorthWest Healthcare Properties REIT offers something rare in the market: high yield, monthly payments, and exposure to an essential industry. Healthcare isn’t going away. And as populations age, demand for the types of properties NorthWest owns will likely grow. That gives the dividend stock a long runway, and you the chance to turn a single stock into reliable, long-term retirement income.
