This TSX Dividend Stock Could Pay You Every Month for Years

Monthly dividends can feel like a cheat code in investing. Instead of waiting for a quarterly payment, you get a steady drip of cash that you can reinvest or use to smooth your budget. That matters when markets wobble, as a predictable deposit can steady your nerves. Still, monthly does not mean safer. Cash flow, debt levels, and lease quality decide whether the payout lasts. So, where does this dividend stock fit?

NWH

NorthWest Healthcare Properties REIT (TSX:NWH.UN) owns and operates healthcare real estate across Canada, Europe, Australasia, and Brazil. Think medical office buildings, clinics, and hospitals rather than condos and malls. Healthcare real estate often comes with long leases, because healthcare operators do not move locations on a whim. That stickiness can support steadier rent collections across economic cycles.

Over the last year, NorthWest has focused on simplifying and strengthening the business after a bruising period for interest rate-sensitive real estate. The real estate investment trust (REIT) has been selling non-core assets and recycling capital. In its first-quarter 2025 results, revenue from investment properties was $111.6 million, down 16.4% year over year, with management pointing to dispositions as a key driver. That drop looks negative, but it can reflect a deliberate trade. That trade means less size today for more financial flexibility tomorrow, if management keeps paying down debt and protecting coverage.

Investors have also watched distribution messaging closely. NorthWest declared a distribution of $0.03 per unit for January 2026, which equals $0.36 per unit annualized, and it kept the monthly payment schedule. For anyone building income inside a Tax-Free Savings Account (TFSA), that cadence helps reinforce reinvestment discipline. It also keeps attention on the main question: is the payout covered by recurring cash flow, not by accounting gains.

Earnings support

The third quarter of 2025 delivered a clearer operating snapshot. NorthWest reported net income of $31.2 million versus a net loss of $157.3 million a year earlier, helped by lower interest expense and fair value changes. Real estate net income can swing with valuation marks, so cash metrics matter more. On that front, the REIT reported adjusted funds from operations (AFFO) per unit of $0.11, up 16% year over year, and same-property net operating income growth of 4.4%. That combination suggests the underlying engine is improving.

Portfolio stability looked strong, too. Occupancy was 96.9% in that quarter, and the weighted average lease expiry stayed above 13 years for the 27th consecutive quarter. Long leases do not erase risk but do reduce the odds of a sudden cash flow cliff. These also buy management time to refinance debt and manage capital spending without scrambling to backfill space.

Looking into 2026, the next catalyst is near and very concrete. NorthWest plans to release fourth-quarter and full-year 2025 results on Feb. 24, 2026. Investors should watch leverage, interest expense trends, and how much cash the REIT retains after distributions and property spending. Continued same-property income growth, steady occupancy, and disciplined refinancing would make the monthly payout story feel sturdier. Meanwhile, investors can bring in ample monthly income from the dividend stock with even $7,000.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTNWH.UN$5.741,219$0.36$438.84Monthly$6,995.06

Bottom line

This is not a set-it-and-forget-it bond substitute. Refinancing costs can bite if rates stay higher for longer. Asset sales can shrink the earnings base if management sells too aggressively. And healthcare operators can face policy and funding pressures that spill into rent negotiations in certain markets. NWH.UN could suit investors who want a monthly income and can tolerate bumps while the balance sheet heals. It may not suit investors who need maximum stability or who will sell when the first scary headline hits.

The post This TSX Dividend Stock Could Pay You Every Month for Years appeared first on The Motley Fool Canada.

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More reading

• 3 Dividend Stocks to Double Up on Right Now
• Build a Cash-Gushing Passive-Income Portfolio With Just $25,000
• TFSA: How to Turn the New $7,000 Contribution Into Monthly Passive Income
• 6.5% Yield: Is NorthWest REIT’s Dividend Safe?
• An Ideal TFSA Stock With a 6.6% Payout Each Month

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.