The Ultimate TFSA Pick: This Stock Pays Dividends Every 30 Days

Owning 5,000 shares of this high yield dividend paying company within a TFSA could generate $150 in tax-free monthly income.

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Investing in high-quality dividend stocks through the Tax-Free Savings Account (TFSA) can boost your investment returns by generating tax-free income and decent capital gains in the long run. Moreover, adding high-yield Canadian stocks that pay dividends every 30 days can be a smart move. These monthly payouts provide a more frequent income, which is ideal for reinvesting or meeting immediate financial needs.

With this background, here is an ultimate dividend stock for your TFSA portfolio that pays every 30 days.

A 7% monthly dividend stock

If you’re looking to add a reliable income stream to your TFSA, Northwest Healthcare Properties REIT (TSX:NWH.UN) may be worth a closer look. This REIT specializes in healthcare-focused properties that are defensive, driving its net operating income and monthly dividend payments.

Northwest specializes in healthcare real estate, a sector known for its defensive characteristics. Its portfolio includes hospitals, medical office buildings, and outpatient clinics spread across Canada and other international markets.

The REIT benefits from its high-quality tenant base, many of whom are major hospital operators and healthcare providers. Notably, a large portion of these tenants are backed by government funding, which adds stability. This structure ensures a steady cash flow that remains resilient even during broader economic slowdowns.

Another significant tailwind for Northwest’s business is the aging population across its core markets. The growing demand for healthcare services increases the need for high-quality medical facilities, including the type of properties Northwest owns and manages. This demographic trend adds long-term relevance to the REIT’s assets and bolsters future income potential.

Northwest also benefits from inflation-protected leases, many of which are long-term and indexed to inflation. This structure means rental income tends to rise over time, helping the REIT to deliver steady and predictable income.

Overall, its solid operating structure enables it to generate healthy same-property net operating income (SPNOI), driving its monthly payouts.

The REIT offers a monthly dividend of $0.03 per share, or $0.36 annually. With the stock trading near $4.97, that dividend represents a yield of over 7%.

Overall, Northwest’s high-quality properties, strong occupancy rate, and growing SPNOI position the company well to deliver a consistent monthly dividend.

Earn $150 per month in dividend income

Despite broader inflationary pressures across the healthcare real estate sector, Northwest’s inflation-linked leases and long-term rental agreements help drive steady income, supporting its payouts. Moreover, as healthcare utilization continues to rise globally, the need for medical office buildings, clinics, and specialized healthcare facilities is increasing as well. Northwest is well-positioned to capture this opportunity through its high-quality portfolio of healthcare properties.

Operationally, the REIT is performing well. Its SPNOI rose 4.5% in Q1 with steady contributions across all regions. This was driven by inflation-indexed leases, improved cost recoveries, and capital upgrades.  Its global portfolio continues to demonstrate strength as the REIT reported a 96.5% occupancy rate, driven by strong tenant retention at 89% and a weighted average lease expiry of 13.6 years. These metrics reflect the quality and resilience of its portfolio.

The REIT is also working to strengthen its financial position by selling non-core assets. So far this year, it has completed over $260 million in asset sales. It used the proceeds to pay down debt and boost liquidity. Northwest’s focus on balance sheet improvement gives it flexibility and resilience amid macro uncertainty.

Owning 5,000 shares of this REIT in a TFSA could generate $150 in tax-free monthly income, as shown in the table below.

CompanyRecent PriceNumber of SharesDividendTotal PayoutsFrequency
Northwest Healthcare Properties REIT$4.975,000$0.03$150Monthly
Price as of 07/11/2025

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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