A monthly dividend stock with a high yield might be a great option rather than a red flag. It gives you a steady paycheque without the stress of market timing or waiting three months for income. When money lands in your account every 30 days, it becomes easier to budget, easier to reinvest, and easier to feel like investments are working for you. A higher yield can speed up the process of building meaningful passive income, especially inside a Tax-Free Savings Account (TFSA), where every dollar stays tax-free. So let’s look at one to consider on the TSX today.
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NWH
NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a global healthcare-focused real estate investment trust (REIT). It owns hospitals, medical office buildings, and clinics. These are scattered across Canada, Europe, Brazil, Australia, and New Zealand. Its appeal comes from its long-term, inflation-indexed leases and essential tenant base as healthcare operators that continue operating regardless of economic conditions.
This gives NorthWest a defensive profile. Demand for medical space is steady, occupancy remains high, and rental income tends to be predictable. Unlike retail or office REITs that rise and fall with consumer or corporate spending, NWH.UN is tied to a sector that remains resilient even during downturns, making it a unique income play on the TSX.
The turnaround
The REIT has been reshaping itself in recent years, selling non-core assets, reducing leverage, and focusing its portfolio on higher-quality properties and stable geographies. This repositioning has helped simplify the business and improve its financial footing. While the transition has taken time, the shift toward efficiency, stronger balance-sheet management, and more disciplined capital allocation has put the dividend stock on firmer ground. Now, it’s heading into the next stage of its growth strategy.
In its most recent earnings, NorthWest returned to profitability after being weighed down by higher interest costs and restructuring initiatives in earlier periods. The REIT reported improved net income and stronger same-property net operating income, showing that its core assets continue to perform well despite macro pressures. Cash flow also stabilized, supported by high occupancy and long-term rental contracts. This gave management confidence in maintaining its monthly distribution. With asset sales reducing debt and refinancing efforts pushing maturities forward, NorthWest created breathing room to continue operating steadily while strengthening its capital structure.
Looking ahead
The REIT also advanced several strategic initiatives. These include internalizing management and optimizing its global portfolio, which should drive long-term efficiency gains. Overall, the past year’s results showed meaningful progress, with operational improvements beginning to flow through to earnings, signalling a more stable foundation for dividend sustainability.
Today, NorthWest remains a solid long-term monthly dividend investment as it’s backed by one of the most stable tenant bases in real estate: healthcare. These are networks that sign long, inflation-protected leases and rarely vacate. Hospitals and medical clinics don’t relocate based on market cycles, which gives the REIT visibility on cash flow many other REITs simply can’t match. As interest rates ease and borrowing costs fall, refinancing becomes less restrictive and property valuations generally improve – all of which support future distribution stability. Meanwhile, even now investors can bring in a 6.8% dividend yield at writing, and here’s what that could return with a $7,000 investment on the TSX today.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| NWH.UN | $5.25 | 1333 | $0.36 | $479.88 | Monthly | $6,998.25 |
Bottom line
Although the REIT faced challenges during the higher-rate environment, its recent operational progress and global healthcare exposure position it well for a multi-year recovery. For long-term investors seeking dependable monthly income with the potential for gradual upside as financial conditions normalize, NWH.UN offers a rare blend of defensive cash flow, international diversification, and essential-service real estate that can compound quietly over time.
