A 6.7% Dividend Stock That Remains a Standout Buy Into 2026

NorthWest Healthcare REIT’s hospital-backed leases and improving finances make it a defensive monthly payer to consider as rates ease in 2026.

Key Points
  • NorthWest owns hospitals and medical buildings with long, inflation‑linked leases, creating steady rent that holds up in weak economies.
  • After restructuring, Q3 2025 returned to profit, same‑property NOI rose 4.4%, and management moves aim to cut costs.
  • It pays $0.03 monthly (about 6.7% yield) and could benefit as interest rates fall and debt costs ease.

With markets shifting and interest rates likely easing, investors will be looking for stability that still delivers real cash in their pockets. A dividend stock could be a standout buy for 2026 in this case. Strong dividend payers offer that dependable income, protection against volatility, and the comfort of owning a company that has proven it can generate steady profits through different economic cycles.

As inflation cools and borrowing costs fall, well-run companies with healthy balance sheets and rising cash flow will have more room to grow their payouts. This makes today’s prices look like a bargain in hindsight. For anyone wanting a mix of income, resilience, and long-term upside, the right dividend stock could be one of the smartest and most comforting buys heading into 2026.

Nurse talks with a teenager about medication

Source: Getty Images

Consider NWH

NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a global healthcare-focused real estate trust that owns hospitals, medical office buildings, and specialty clinics across Canada, Brazil, Europe, Australia, and New Zealand. What sets it apart from traditional REITs is its tenant profile. Many of its properties are leased to hospital operators and government-backed health networks. It therefore offers long-term, inflation-linked leases that create stable, predictable income. Healthcare infrastructure tends to be recession-resistant, and demand for medical space continues to rise as populations age and healthcare systems expand.

In recent years, NorthWest has undergone restructuring efforts to strengthen its balance sheet and improve cash flow stability. It faced headwinds from higher interest rates, elevated debt levels, and portfolio repositioning. Yet now, management has been selling non-core assets, refinancing at more favourable terms, and focusing on stabilizing its international operations. These measures have helped improve liquidity and support its long-term strategy. Although it isn’t without risk, NorthWest remains a notable name for income-focused investors who see value in a REIT tied to essential healthcare infrastructure and long-duration leases.

Into earnings

In its latest results for the third quarter of 2025, NWH.UN returned to profitability: the REIT reported net income of about $31.2 million, a big swing from losses in prior years. Operating metrics also improved with same-property net operating income rising 4.4% versus prior periods. Plus, the dividend stock advanced a plan to internalize management of a major trust subsidiary, a move that investors saw as increasing efficiency and reducing overhead. NWH.UN continues paying a monthly distribution of $0.03 per share, which works out to a 6.7% yield at writing.

NWH.UN could appeal to investors seeking monthly tax-advantaged income, owing to its global, diversified health-care property base and improving financial position. The recent return to net profitability and operational stabilization suggest that distributions may be more sustainable going forward. Furthermore, health-care real estate tends to be more recession-resistant and less dependent on economic cycles than retail or commercial office properties. This makes NWH.UN a relatively conservative income play in a world of rising uncertainty. If management continues improving portfolio quality and reducing leverage, its monthly payouts could remain a stable income stream.

Looking ahead

NWH.UN remains a standout dividend buy for 2026 as it offers something few REITs can match. That’s stable, long-duration, inflation-linked cash flow tied to essential healthcare real estate. Its tenants are hospitals, medical clinics, and government-backed health networks that operate regardless of economic cycles, giving NorthWest a level of income resilience most REITs don’t have.

With global demand for healthcare infrastructure rising due to aging populations and increased medical needs, occupancy stays high, leases remain long, and rental income remains steady. As 2026 approaches, NorthWest is also benefiting from steps taken in recent years to streamline operations, internalize management, and strengthen the balance sheet. This positions it for a smoother growth path ahead.

Foolish takeaway

At the same time, expected interest rate cuts in 2026 act as a major tailwind for a REIT that previously struggled under higher borrowing costs. Here’s what investors can lock in today through a $7,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
NWH.UN$5.301320$0.36$475.20Monthly$6,996.00

In a market where many income stocks remain sensitive to rate swings or consumer spending trends, NWH.UN stands out as a defensive, globally diversified dividend option that is well-positioned for a stronger year in 2026.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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