Why Falling Prices Can Signal Opportunity
Investing in the stock market can be intimidating—especially when prices are falling. For beginners, a sharp decline might seem like a red flag. But seasoned investors know that a drop in share price doesn’t always mean trouble—it can signal a prime buying opportunity, particularly for high-quality dividend-paying stocks.
One such opportunity today is NorthWest Healthcare Properties REIT (TSX:NWH.UN)—a beaten-down but promising monthly dividend stock that many experienced investors are watching closely.
Also Read: High growth Canadian stocks 2025
About NorthWest Healthcare Properties REIT
NorthWest Healthcare Properties is a Canadian real estate investment trust (REIT) with a $1.3 billion market cap, focused on healthcare-related real estate. Its portfolio includes clinics, medical office buildings, and administrative facilities located in major urban centers across several key international markets.
The stock has fallen roughly 53% from its March 2022 highs, largely due to rising interest rates imposed by the Bank of Canada and the U.S. Federal Reserve. As of now, NWH.UN trades around $5.11 per share and offers a monthly distribution of $0.03, representing a 7% annualized dividend yield.
Also Read: Best long term Canadian stocks
Dividend Sustainability Is Improving
Previously, a major concern for NorthWest was the sustainability of its high-yield dividend, with its payout ratio exceeding 100%, meaning it was paying out more than it earned. In response, management cut the dividend in half to bring it back in line with earnings.
This move has paid off. In Q2 FY2025, the payout ratio dropped to approximately 88%, signaling that the dividend is now better supported by the REIT’s recurring cash flow.
Positive Signs: Occupancy, Lease Terms, and Growth
Despite short-term macroeconomic headwinds, NorthWest shows signs of stability:
- 97% occupancy rate, indicating strong tenant demand
- 13.5-year average lease term, ensuring long-term revenue visibility
- Organic rental growth, supporting future cash flow increases
With interest rates expected to ease further, NorthWest’s financial position may continue to strengthen, making it more appealing for income-focused investors.
Bottom Line: A High-Yield Monthly Payer Worth Watching
While not without risk, NorthWest Healthcare Properties REIT is shaping up to be a compelling option for long-term investors looking for passive income. Its attractive yield, improving payout sustainability, and strong real estate portfolio position it as a potential turnaround play in the REIT space.
At a 50% discount from its previous highs and with signs of a recovery taking shape, now may be a smart time to take a closer look.
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