There are a few TSX stocks I talk a lot about on a regular basis, and one of those is dividend stock NorthWest Healthcare Properties REIT (TSX:NWH.UN). NorthWest stock hasn’t been around long, but there’s a few reasons why I continue to recommend it as a long-term hold.
Today, I”ll go into why the dividend stock is right for most portfolios, and why this stock yielding 8.2% is one I continue to buy right now.
The primary reason that I often recommend this dividend stock is the industry it’s in. While there are many real estate investment trusts (REIT) on the TSX today, there aren’t others in the healthcare industry. And that’s the key here.
If you look at analyst recommendations for purchases during a downturn, healthcare comes up a lot. There’s a reason for this, of course. That’s because healthcare is needed no matter what happens. It’s essential. We saw this during the pandemic, but it has remained the same both before and after.
NorthWest stock therefore is a strong purchase, focusing on healthcare properties of every kind. But what’s more, those properties are located around the world! It owns properties in the Netherlands, Australia, the United States and of course Canada, among other countries. So you get diversification any way you slice it.
Then there’s the value behind this dividend stock. Again, this can be found no matter what way you look at it. First, there’s the share price itself. NorthWest stock currently trades at 8.3 times earnings, putting it in value territory. Shares are also down this year by 24% in the last year alone!
But it also has value in terms of its fundamentals. If you look at company earnings reports, you’ll see that NorthWest has an average lease agreement of around 14 years as of writing. Further, it has a 97% occupancy rate! That’s recurring revenue you can look forward to for more than a decade.
And yet, the company is still open for more opportunities in the future. NorthWest stock continues to have a strong balance sheet, using its revenue to purchase more properties. So despite not growing its dividend since coming on the TSX today, it’s putting that revenue to good use.
And of course a dividend to match
The reason you likely clicked onto this article is because this dividend stock has a dividend yield at 8.2% as of writing. That dividend comes out each and every month at $0.80 per share. That means even a relatively small investment could still bring in massive passive income.
But there’s a reason I’m continuously buying this dividend stock. It’s not only to grow my passive income amount, but also because of the long-term growth I’m likely to achieve. Right now shares are down, so I’m taking the opportunity to pick up more, increase my passive income, and wait for a rebound when the market recovers.
Furthermore, I’m then putting all this to work by reinvesting in the dividend stock again and again. By doing so, I’ll continue to build wealth long term. And that’s always the ultimate goal.