Retiring wealthy isn’t at all times about chasing the largest inventory wins. For a lot of Canadians, it’s about constructing steady, constant revenue. And what’s extra steady than getting paid each month? For those who’re dreaming of incomes $1,000 per thirty days from a single dividend inventory in retirement, NorthWest Healthcare Properties REIT (TSX:NWH.UN) is perhaps the answer. It gives a excessive dividend yield, month-to-month payouts, and publicity to healthcare infrastructure, a sector constructed to final.
About NWH
This actual property funding belief (REIT) focuses on proudly owning and working healthcare-related properties. Its portfolio contains hospitals, clinics, and medical places of work unfold throughout Canada, Brazil, Europe, and Australasia. These properties are leased to healthcare suppliers, a lot of whom function underneath long-term agreements. Meaning predictable rental revenue for the REIT and constant returns for buyers.
As of writing, NorthWest shares commerce at roughly $4.86. The dividend inventory gives a month-to-month dividend of $0.03 per share, which totals $0.36 yearly. At this value, that offers the dividend inventory a dividend yield of about 7.2%. That’s properly above common and makes it one of many extra enticing month-to-month payers on the TSX right now.
To earn $1,000 per thirty days, or $12,000 yearly, you’d have to personal roughly 33,333 shares. Multiply that by $4.86 and also you get a required funding of round $162,197. That’s no small quantity. However for buyers with a long-term plan, it’s an achievable goal, particularly when paired with common contributions to a Tax Free Financial savings Account (TFSA).
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND (yr/share) | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| NWH.UN | $4.86 | 33,333 | $0.36 | $12,000 | Month-to-month | $162,197 |
Well worth the funding?
Let’s have a look at the enterprise itself. In its most up-to-date earnings report for Q1 2025, NorthWest Healthcare reported income of $111.6 million. Whereas this was down from the earlier yr, the decline was as a result of strategic asset gross sales. Importantly, same-property web working revenue rose 4.5% to $73.8 million, exhibiting that the core enterprise continues to develop. Adjusted funds from operations (AFFO), a key measure of dividend well being, got here in at $0.10 per unit. That’s a wholesome stage, and it supported a payout ratio of 92%, an enchancment from 105% in Q1 of the prior yr.
The dividend inventory has additionally taken main steps to enhance its stability sheet. In current quarters, it offered over $260 million in non-core belongings, together with a $209 million sale of its shares in Assura PLC. The proceeds went towards paying down debt, which lowered its leverage to 48.6%. That’s a serious optimistic, particularly in a high-interest-rate atmosphere. Much less debt means much less danger and extra flexibility for the corporate to keep up its dividends.
Like all funding, there are dangers to contemplate. The dividend inventory reported a web lack of $15.5 million in Q1 2025, although that was an enchancment from a lack of $38.6 million in the identical quarter final yr. These losses are sometimes tied to asset revaluations or one-time prices, not ongoing operations. Nonetheless, it’s one thing to keep watch over.
Backside line
What makes NorthWest particularly enticing for retirees is the month-to-month revenue. You’re not ready each three months for a cheque; you receives a commission persistently, serving to to match month-to-month payments. And if you happen to’re holding that revenue in a TFSA, it’s utterly tax-free.
Attending to $162,000 in capital might take time, however it’s doable. With disciplined contributions of say $10,000 per yr and reinvested dividends, you might attain your aim in underneath 20 years. You don’t want to start out massive, you simply want to start out.
NorthWest Healthcare Properties REIT gives one thing uncommon available in the market: excessive yield, month-to-month funds, and publicity to a vital business. Healthcare isn’t going away. And as populations age, demand for the kinds of properties NorthWest owns will probably develop. That offers the dividend inventory a protracted runway, and also you the possibility to show a single inventory into dependable, long-term retirement revenue.
