Amongst all of the attainable methods of incomes month-to-month passive revenue in Canada, dividend investing may very well be one of many best ones. Investing in dividend shares additionally provides you the pliability to decide on the quantity you wish to obtain as additional revenue every month based mostly in your portfolio measurement and danger urge for food. Whereas many dividend-paying corporations have seen a pointy correction of their share costs within the final yr as a result of financial turmoil, this dip may very well be a possibility so that you can add some reliable month-to-month dividend shares to your portfolio at a cut price.
On this article, I’ll spotlight one such beaten-down Canadian dividend inventory that may ship you $100 in month-to-month passive revenue with out requiring you to speculate an enormous sum of cash.
A beaten-down month-to-month dividend inventory to purchase in Canada
As a way to maintain your dangers low, it’s best to all the time keep away from investing in a enterprise with a weak steadiness sheet and excessive debt ranges. A excessive debt degree is a danger issue that may turn out to be a giant impediment to an organization’s progress plans and damage its inventory value motion.
Now, returning to my inventory decide for month-to-month passive revenue, NorthWest Healthcare Properties REIT (TSX:NWH.UN) may very well be a terrific month-to-month paying dividend inventory with a powerful monetary place and a sizeable asset base. This REIT (actual property funding belief) primarily focuses on the healthcare actual property trade and has a market cap of $2 billion. Its inventory at the moment trades at $8.29 per share after dropping greater than 40% of its worth within the final yr and provides a 9.7% annual dividend yield.
Within the final yr, rising macroeconomic uncertainties have spooked actual property buyers. This issue and the latest weak spot in NorthWest Healthcare’s profitability are two key causes for its inventory’s poor efficiency. However its stable underlying progress potential makes it value shopping for for the long run. Let me clarify why.
Prime causes to purchase this inventory now
On the finish of 2022, NorthWest Healthcare REIT had a powerful portfolio of 233 income-producing properties, up from 197 properties on the finish of the earlier yr. With this, it owned a gross leasable space of 18.6 million sq. ft in key markets, together with the USA, Canada, Europe, and Australia. Regardless of a continued enlargement of its high-quality property base, the occupancy at this open-ended REIT’s properties remained sturdy at 97% final yr.
If a enterprise is going through demand points, chances are you’ll not wish to put money into it. Nonetheless, that’s not the case with Northwest Healthcare REIT. The underlying power of its enterprise mannequin may very well be seen in its persistently excessive income progress. In 2022, NorthWest posted a stable 20% year-over-year improve in its whole income to $448.Eight million, exceeding analysts’ estimate of $412.5 billion by a large margin.
As extra international locations than ever are actually shifting their focus to enhance their healthcare infrastructure, the demand for NorthWest’s persistently increasing asset base is probably going to enhance additional. This issue ought to assist its financials develop at a quicker tempo within the coming years and its inventory get well.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| NorthWest Healthcare Properties REIT | $8.29 | 1,500 | $0.06667 | $100 | Month-to-month |
| Costs as of Apr. 20, 2023 |
Earn $100 in dependable month-to-month passive revenue
To $100 each month or $1,200 a yr from its dividends, you possibly can think about shopping for 1,500 shares of NorthWest Healthcare Properties REIT. On the present market value, you’ll have to speculate about $12,435 to purchase these many shares of this month-to-month dividend inventory. That stated, it’s best to always remember to diversify your dividend inventory portfolio by dividing your funding portfolio into a couple of or two shares to maintain your dangers low.