With many top TSX stocks trading near their highs after the market’s recent rally, finding high-quality dividend stocks at a discount is hard. Nonetheless, a few fundamentally strong TSX dividend stocks have dropped from their recent highs. This pullback is a buying opportunity for long-term investors seeking income.
Against this background, here is a TSX dividend stock that has dropped 13% from its recent peak. While this dividend stock has dropped despite the broader market’s positive momentum, I’d still back it for the long haul for its compelling yield and monthly dividends.
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A high-yield TSX dividend stock to buy now
Income investors looking for reliable monthly cash could consider Vital Infrastructure Property Trust (TSX:VITL.UN). The high-yield TSX dividend stock has dropped about 13%, creating a buying opportunity.
Vital Infrastructure Property Trust owns critical healthcare real estate across North America, Brazil, Europe, and Australia. Its portfolio includes hospitals, inpatient facilities, and outpatient medical clinics that play an essential role in healthcare delivery, a sector known for its resilience and steady demand.
Notably, many of its properties are leased under long-term agreements. Further, the majority of its lease agreements are indexed for inflation. Further, its diversified tenant base and geographic footprint support stable and predictable cash flows.
As of March 31, 2026, the REIT held interests in 134 income-producing properties. The trust’s high-quality assets, strong tenant relationships, and long-term lease profile have helped maintain solid occupancy levels and generate consistent adjusted funds from operations (AFFO), supporting its monthly dividend payments.
Currently, Vital Infrastructure Property Trust pays a monthly distribution of $0.03 per unit, yielding approximately 6.8%.
Into Q1 earnings
Vital Infrastructure delivered another quarter of solid operating performance, reflected in a 96.4% occupancy rate and a weighted-average lease expiry of 12.1 years. Its portfolio of long-dated leases continues to generate dependable cash flows, providing a strong foundation for dividend payments amid an uncertain economic environment.
Beyond operational stability, Vital Infrastructure strengthened its financial position by reducing debt and lowering interest expenses. Improved liquidity and a healthier balance sheet give management greater flexibility to capitalize on attractive investment opportunities across North America.
With resilient assets, predictable income streams, and growing financial capacity, Vital Infrastructure appears well-positioned to create long-term value for shareholders in the quarters ahead.
Vital Infrastructure’s valuation and growth outlook remain attractive
Vital Infrastructure appears well-positioned to deliver consistent long-term income, supported by its diversified portfolio of critical healthcare assets. The REIT will continue to benefit from a strong tenant base, long-term lease agreements, and high occupancy levels.
A key growth driver is its increasing focus on outpatient and ambulatory care facilities in Canada, where the shift of medical procedures away from large hospitals is still in its early stages. Further, it is optimizing its portfolio by selling non-core assets and using the funds to lower debt and pursue higher-return investment opportunities. At the same time, management is working to improve operating leverage and enhance profitability while maintaining a conservative balance sheet.
Despite these favourable growth prospects, the stock trades at a forward price-to-AFFO multiple of 12.9 times. Given its resilient business model, steady growth outlook, and attractive dividend yield, the current valuation appears reasonable, making Vital Infrastructure an appealing income stock.
