It’s not always easy to find a dependable income stock that keeps sending cash to your account even when the economic outlook remains uncertain. Some dividend stocks look attractive on the surface, but lose steam once conditions change. That is why monthly income matters more than ever for investors who want consistency instead of surprises. A top monthly dividend stock with solid financials and a strong growth outlook could offer that steady balance if the business behind it is reliable.
In this article, I’ll talk about a top Canadian monthly income stock to buy that combines healthcare real estate with dependable monthly payouts.
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A top healthcare REIT for years of monthly income
With monthly cash flow as the priority, Northwest Healthcare Properties REIT (TSX:NWH.UN) could fit any income-focused portfolio well. This Toronto-based open-ended real estate investment trust (REIT) operates as a global healthcare real estate owner with properties spread across Canada, the United States, Europe, Brazil, Australia, and New Zealand. Its assets tend to stay occupied even during slower economic periods, which helps support its stable rent collections.
After rallying by nearly 14% over the last year, Northwest stock currently trades at $5.13 per unit, giving it a market cap of nearly $1.3 billion. At this level, the REIT offers an annualized dividend yield of just over 7%, and more importantly, that dividend is paid monthly. That alone places it firmly as one of the top Canadian monthly dividend stocks for income-focused investors.
What’s driving this monthly dividend stock higher
The recent rise in Northwest Healthcare stock is mainly supported by its improving fundamentals. In the third quarter of 2025, the REIT’s portfolio occupancy stood at 96.9%, backed by a long weighted average lease expiry of 13.4 years. Meanwhile, its same property net operating income increased 4.4% YoY (year-over-year) with the help of inflation-linked rent increases and stable leasing across all regions.
Last quarter, the company’s AFFO (adjusted funds from operations) came in at $0.11 per unit compared to $0.09 per unit in the same period a year earlier. This improvement was mainly fueled by its higher same property income, lower interest expenses, and reduced administrative costs.
At the same time, Northwest’s AFFO payout ratio declined to 85%, down from 99% a year ago. That drop clearly signalled improved coverage of its monthly dividend distribution and gave the payout more flexibility. As a result, its net profit also swung to a $31.2 million profit for the quarter, compared with a large loss a year ago, as it benefited from lower interest costs and positive property value adjustments.
These moves could shape its long-term story
Interestingly, Northwest Healthcare reduced its leverage to 48.4% in the latest quarter, down from 50% at the end of 2024. Debt repayments funded by asset sales helped the trust drive that improvement. Meanwhile, its weighted average interest rate also fell to 4.9%, easing pressure from borrowing costs.
In recent years, the REIT has increased its focus on simplifying operations and reallocating capital. It’s working toward internalizing management at Vital Healthcare Property Trust, a healthcare real estate platform in Australia and New Zealand, where Northwest REIT owns about a 28% stake. In addition, it’s exploring options for its European portfolio. If completed, these efforts could generate more than $300 million in net proceeds, which could strengthen its balance sheet further and support its future capital allocation.
Given these strong fundamentals, Northwest Healthcare Properties REIT looks like a great pick for investors seeking stable monthly income backed by essential real estate assets.
