Monthly dividend stocks feel like a paycheque you can set your watch by, and that can be a big deal if you want cash flow without selling shares. The best ones line up predictable rent or contract income with a steady payout schedule, which can smooth budgeting and keep investors calmer during volatile markets. The catch is that a monthly payout does not automatically mean safety, so the real test stays the same: can the business cover the distribution after interest costs and maintenance spending, even when the economy gets choppy?
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NWH
NorthWest Healthcare Properties REIT (TSX:NWH.UN) aims to do that with a portfolio built around healthcare real estate. It owns interests in hospitals, medical office buildings, clinics, and other healthcare facilities across multiple countries. Healthcare properties tend to come with long leases and sticky tenants, as moving a hospital or clinic is not like moving a coffee shop.
Over the last year, the story centred on getting the balance sheet under control and simplifying the platform. The real estate investment trust (REIT) kept pushing a capital-recycling plan, selling non-core assets and using proceeds to pay down debt. It also made structural moves meant to reduce complexity, including the completion of its Vital Management internalization late in 2025. Through the year it also kept the monthly distribution steady at $0.03 per unit, which equals $0.36 annualized, signalling that management prioritized consistency while it worked through the heavier lifting. Even $7,000 can earn ample income with that investment.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| NWH.UN | $6.06 | 1,155 | $0.36 | $415.80 | Monthly | $6,999.30 |
Into earnings
Earnings are where NWH.UN starts to look steadier than the share price suggests, and Q3 2025 delivered a good snapshot. Adjusted funds from operations (FFO) came in at $0.11 per unit, up from $0.10 per unit in Q2 2025 and $0.09 per unit in Q3 2024. Just as important, the adjusted funds from operations payout ratio improved to 85%, down from 88% in the prior quarter and well below the 99% level a year earlier. In short, distribution coverage is improving.
The operating metrics also looked supportive for a long-lease landlord. The REIT reported same-property net operating income growth of 4.4% year over year in Q3 2025, with portfolio occupancy around 96.9% and a weighted average lease expiry of more than 13 years. It also posted net income of $31.2 million for the quarter and pointed to a portfolio capitalization rate of 6.3% at the end of September 2025. On the balance sheet side, leverage improved to 48.4% from 50.0% at the end of 2024, helped by debt repayments funded through asset dispositions.
Looking ahead, the investment case is simple: keep improving coverage, keep refinancing risk in check, and let long leases do their job. The REIT has been working to reduce floating-rate exposure and extend maturities, and that effort can keep paying off if rates do not fall quickly. The biggest risk remains leverage in a world where lenders still demand discipline, plus any tenant-specific headlines that hit rent confidence.
Foolish takeaway
If you want a Canadian stock that pays monthly and still offers a respectable yield, NWH.UN can fit the bill at roughly 6% today. It brings long leases, healthcare demand, and improving distribution coverage, which is the mix income investors want when markets feel uncertain. The reason to stay cautious is just as clear: leverage and refinancing always matter for REITs, and tenant news can hit quickly. Still, if you want monthly cash flow with a path toward steadier fundamentals, this one deserves a spot on the watchlist.
