Earning cash every month might not make you rich overnight, but it could help you build wealth over time without worrying about short-term market ups and downs. In times of market volatility, investors usually turn to dividend-paying stocks for a bit of calm. And when that dividend arrives monthly – at a healthy 6.8% yield – it’s even better for long-term income investors.
In this article, I’ll talk about NorthWest Healthcare Properties REIT (TSX:NWH.UN), a top stock from the real estate sector offering attractive monthly payouts, and tell you why it’s gaining popularity among defensive-minded investors in 2025.
A monthly dividend stock with a 6.8% yield
As the name suggests, NorthWest Healthcare Properties REIT is a Toronto-based open-end trust with a large portfolio of healthcare infrastructure assets. After climbing over 17% so far in 2025, its stock currently trades at $5.30 per share with a market cap of $1.3 billion and offers a 6.8% annualized dividend yield – paid monthly.
While the stock is still recovering from a multi-year slide, its recent gains could mainly be attributed to the REIT’s sharper focus on asset optimization and smarter capital allocation.
A leaner portfolio and improving financials
NorthWest recently sold off non-core assets, which helped it trim debt and improve its balance sheet. As of the third quarter of 2025, its leverage dropped to 48.4%, down from 50% at the end of 2024.
In the latest quarter, the company also saw a strong recovery in profitability as its net income stood strong at $31.2 million, reflecting a big improvement compared to the net loss of $157.3 million in the same quarter last year. Lower interest expenses and fair value gains on investment properties boosted NorthWest’s profitability.
During the quarter, the REIT’s adjusted funds from operations (AFFO) also improved to $0.11 per unit from $0.09 a year ago. This improvement pushed its AFFO payout ratio down to 85% – suggesting a notable improvement from last year’s 99%. It simply means the company’s monthly dividend payouts are now better covered, which gives income investors more confidence.
Similarly, NorthWest’s same-property net operating income also grew 4.4% year-over-year in the latest quarter, showing that its core operations are still healthy despite asset sales. Meanwhile, occupancy across its 167 properties remained solid at 96.9%, with a weighted-average lease expiry of 13.4 years, offering good long-term visibility.
Focusing capital on stronger markets
While simplifying operations, NorthWest is also making some bold moves to actively explore options to reduce exposure to its European portfolio and redeploy that capital into North America, where growth opportunities are stronger and more predictable.
Its recent deal with Vital Healthcare Property Trust in New Zealand, where NorthWest is internalizing management rights for NZ$214 million, could unlock over $170 million in cash proceeds for NorthWest. As a result, it could further reduce the REIT’s debt and support its new investments.
Why monthly income investors should consider it
NorthWest is not just paying a high dividend but also working behind the scenes to keep the payout sustainable. Notably, the REIT has already taken initiative to raise over $300 million through asset sales and internalization deals, which should give it more flexibility to handle upcoming debt and pursue higher growth.
With essential healthcare real estate, stable lease income, and visible efforts to streamline the business, NWH stock is slowly rebuilding investor confidence. Given these fundamentals, this monthly dividend stock is definitely worth considering in 2025, especially for investors seeking dependable income.
