When choosing a stock for a Tax-Free Savings Account (TFSA), you should ideally focus on fundamentally strong companies that offer both stable income and long-term growth potential. That’s especially true in today’s uncertain market, where dependable cash flow and resilient business models matter more than ever. Vital Infrastructure Property Trust (TSX: VITL.UN) is one TSX dividend stock that has been doing both recently.
This healthcare-focused real estate investment trust (REIT), formerly known as NorthWest Healthcare Properties REIT, owns a diversified portfolio of healthcare infrastructure assets across North America, Europe, Brazil, and Australia.
Let me explain why Vital Infrastructure Property Trust could be an attractive monthly dividend stock for a TFSA this May and what may continue supporting its long-term recovery.
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A healthcare REIT focused on essential infrastructure
If you don’t know it already, Vital Infrastructure Property Trust provides investors with exposure to healthcare real estate assets, including hospitals, outpatient clinics, diagnostic centres, rehabilitation facilities, and medical office buildings.
The REIT currently owns interests in 133 income-producing properties spanning roughly 13 million square feet across several international markets. More importantly, many of these assets operate under long-term indexed leases, helping provide stable and predictable rental income.
At the time of writing, the stock traded at $5.68 per share with a market cap of about $1.4 billion. Over the last year, the stock has climbed by about 15%, while also offering investors an attractive 6.3% annualized dividend yield, paid monthly. That great combination of recurring monthly income and potential recovery upside could make it an appealing TFSA stock for long-term investors.
Operational stability remains encouraging
While Vital Infrastructure is yet to release its first-quarter results (scheduled for May 13), its fourth-quarter 2025 results highlighted improving operational trends despite a challenging interest rate environment.
In the fourth quarter of 2025, the REIT’s revenue from investment properties rose 4.8% year-over-year (YoY) to $107.6 million. Similarly, its same-property net operating income for the quarter climbed by 3% YoY, backed by inflation-linked rent increases, rentalized capital expenditures, and improved recoveries across its portfolio.
Moreover, Vital’s occupancy levels remained strong globally at 96.4%, while it maintained a weighted average lease expiry of 12.3 years. These metrics highlight the stability of its healthcare-focused tenant base and long-term lease structure.
During the quarter, the REIT also made progress in strengthening its financial position as its consolidated debt-to-gross-book-value ratio improved to 46.4% from 50% a year earlier. At the same time, its weighted average interest rate declined to 4.7%.
Strategic initiatives could support future recovery
Beyond operational stability, Vital Infrastructure is also repositioning its business to improve long-term financial flexibility and focus more heavily on healthcare infrastructure opportunities across the Americas.
Meanwhile, the company has also continued working to improve liquidity and reduce leverage. In late 2025, it completed the internalization of Vital Trust management arrangements, generating proceeds that were largely used to repay debt and strengthen liquidity.
In addition, the REIT continues advancing selected property sales, including a portfolio of European assets classified as held for sale. These initiatives could help simplify its operations further and improve its balance sheet over time.
Why this TSX stock could fit well in a TFSA
It’s important to note that healthcare infrastructure tends to remain resilient across economic cycles because demand for medical services generally stays stable regardless of broader market conditions. That defensive quality makes healthcare REITs attractive holdings inside a TFSA.
Vital Infrastructure also offers investors a sizable monthly income stream with its 6.3% yield, allowing TFSA investors to compound tax-free income over time. While the stock still carries some risks due mainly to elevated interest rates, refinancing activity, and global operations, its improving leverage profile, stable occupancy, and long-term lease structure suggest the business is moving in the right direction – making it an attractive monthly dividend stock to consider right now.
