If you wish to construct lasting, dependable wealth, investments that pay month after month may very well be your prime picks. Historically, the time period “Dividend King” refers to corporations with over 50 years of dividend hikes. Nevertheless, there are some TSX-listed month-to-month dividend shares that, regardless of not becoming this textbook definition, nonetheless behave like royalty.
One such month-to-month paying revenue inventory, NorthWest Healthcare Properties REIT (TSX:NWH.UN), is presently providing a juicy 7.5% annualized yield. And it’s supported by a monitor document of beneficiant, constant payouts that long-term traders love.
Let’s take a more in-depth have a look at this high-yielding dividend inventory’s financials and basic outlook. Northwest may not be a proper “King,” however definitely guidelines in relation to rewarding shareholders.
NorthWest Healthcare Properties REIT
NorthWest Healthcare owns and manages hospitals, medical workplace buildings, and clinics throughout North America, Brazil, Europe, and Australasia – key locations the place demand for healthcare companies is robust and rising.
After rising by over 9% year-to-date, the REIT is presently buying and selling at $4.86 per unit, with a market cap of round $1.2 billion.
What’s driving this month-to-month revenue inventory larger in 2025
A giant purpose behind these positive aspects in NorthWest inventory may very well be its latest progress in cleansing up its stability sheet and boosting money circulate. Notably, all through 2024, the REIT centered on simplifying its operations and strengthening its stability sheet. It bought off $1.4 billion value of non-core property, trimmed debt by greater than $1.1 billion, and refinanced an enormous chunk of what remained. This helped scale back curiosity prices and enhance its general monetary flexibility.
All of this translated into higher numbers within the newest quarter. For instance, within the December 2024 quarter, NorthWest Healthcare’s adjusted funds from operations (AFFO), which is just the money it has left over after main bills, grew 9% over the earlier quarter and 12% on a YoY (year-over-year) foundation. At $0.10 per unit within the fourth quarter, NorthWest’s AFFO comfortably coated its month-to-month distributions. That’s an enormous enchancment from latest quarters when the REIT’s payout ratio had stretched over 100%.
Why this REIT may very well be a keeper
What makes NorthWest a tremendous inventory for long-term revenue traders is its giant world portfolio of 172 healthcare properties which might be 96% occupied with a formidable common lease time period of 13.6 years. Practically all of its rental revenue is contractually listed to inflation, giving it built-in safety in opposition to rising prices. In as we speak’s unsure macroeconomic atmosphere, that type of long-term stability may very well be troublesome to search out.
On prime of that, NorthWest Healthcare is actively rising its footprint via strategic partnerships and sustainable developments, like its award-winning inexperienced healthcare precincts in Australia. The belief can also be tightening operations because it lower common prices by 20% over the previous yr, which ought to result in improved profitability.
Given these sturdy fundamentals, this high-yielding, globally diversified REIT is on the trail to regain traders’ confidence. It might not put on the Dividend King crown by definition, however in relation to month-to-month revenue, it definitely walks and talks like royalty.
