There are a couple of TSX stocks I talk quite a bit about frequently, and certainly one of those is dividend stock NorthWest Healthcare Properties REIT (TSX:NWH.UN). NorthWest stock hasn’t been around long, but there’s a couple of the explanation why I proceed to recommend it as a long-term hold.
Today, I”ll go into why the dividend stock is true for many portfolios, and why this stock yielding 8.2% is one I proceed to purchase straight away.
Stable industry
The first reason that I often recommend this dividend stock is the industry it’s in. While there are numerous real estate investment trusts (REIT) on the TSX today, there aren’t others within the healthcare industry. And that’s the important thing here.
In case you take a look at analyst recommendations for purchases during a downturn, healthcare comes up quite a bit. There’s a reason for this, in fact. That’s because healthcare is required regardless of what happens. It’s essential. We saw this in the course of the pandemic, nevertheless it has remained the identical each before and after.
NorthWest stock subsequently is a powerful purchase, specializing in healthcare properties of all types. But what’s more, those properties are situated world wide! It owns properties within the Netherlands, Australia, the USA and in fact Canada, amongst other countries. So that you get diversification any way you slice it.
Huge value
Then there’s the worth behind this dividend stock. Again, this may be found regardless of what way you take a 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 yr by 24% within the last yr alone!
However it also has value when it comes to its fundamentals. In case you take a look at company earnings reports, you’ll see that NorthWest has a median lease agreement of around 14 years as of writing. Further, it has a 97% occupancy rate! That’s recurring revenue you’ll be able to look ahead to for greater than a decade.
And yet, the corporate continues to be open for more opportunities in the longer term. NorthWest stock continues to have a powerful balance sheet, using its revenue to buy more properties. So despite not growing its dividend since coming on the TSX today, it’s putting that revenue to good use.
And in fact a dividend to match
The explanation you likely clicked onto this text is because this dividend stock has a dividend yield at 8.2% as of writing. That dividend comes out each month at $0.80 per share. Which means even a comparatively small investment could still herald massive passive income.
But there’s a reason I’m constantly buying this dividend stock. It’s not only to grow my passive income amount, but in addition due to long-term growth I’m more likely to achieve. Right away shares are down, so I’m taking the chance to select up more, increase my passive income, and wait for a rebound when the market recovers.
Moreover, I’m then putting all this to work by reinvesting within the dividend stock time and again. By doing so, I’ll proceed to construct wealth long run. And that’s all the time the final word goal.
The post 1 Priceless Dividend Stock (With an 8.2% Yield) I’m Buying Right Now appeared first on The Motley Idiot Canada.
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More reading
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Idiot contributor Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Idiot recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Idiot has a disclosure policy.