Last week, we discussed 9.5%-yield Omega Healthcare (NYSE:OHI), its different dividend cut scenarios, and its potential returns as a result.
This week, we’re looking at another healthcare REIT, NorthWest Healthcare Properties REIT (TSX:NWH.UN). It attracts income investors in multiple ways. First, it pays a big dividend through a monthly payout. Second, the healthcare REIT’s international portfolio provides a unique offering. Third, it recently demonstrated that it can grow its net asset value per unit (NAVPU).
Get a big dividend from this healthcare REIT
Any income investor would love to get a big paycheque every month. NorthWest Healthcare Properties REIT currently offers a yield of almost 5.9%. It has maintained the same annualized payout of $0.80 per unit since 2012.
Big dividend stocks are tempting. Who doesn’t want to buy shares of a company and sit back to enjoy juicy passive income? Stock investing is not so simple, though. Big dividend yields can be cut.
As a dividend investor who targets extraordinary total returns, I sometimes battle between getting a nice dividend income and a high expected total return. Sometimes, investors can get the best of both worlds, though. When it’s clear a nice dividend stock could deliver high returns, it’s easy to make an investment decision. Other times, the market has given a clear signal that a high yield dividend stock’s dividend could be in danger. Usually, slow growth piggyback on high yield stocks.
Here’s a high-yield dividend stock you might have looked at over the last year.
A dividend stock with a +9% yield
Honestly, I have been tempted by Omega Healthcare (NYSE:OHI) juicy yield in the last month or so. Currently, it almost yields 9.2%! However, my investment decision doesn’t entirely depend on the +9% yield, because there’s the danger that the healthcare REIT could cut its yield to lower levels. Therefore, if I buy the dividend stock, it wouldn’t only be for the dividend, it’ll also need to be a good total-return investment.
Happy Thanksgiving Day, Canadians! Our American neighbours will be celebrating Thanksgiving on November 25. This is due to Thanksgiving was originally set for celebrating good harvest and since Canada is more up north, Canadian farmers would harvest sooner.
While enjoying stuffed turkeys, it’s a good time to reflect on things we’re grateful about. In terms of dividend stocks, I’m thankful to have the following holdings in my portfolio. I also want to thank you for reading this blog. :3
I used to trade in and out of stocks, looking for quick profits. More recently, I was able to refrain from selling my Fortis (TSX:FTS)(NYSE:FTS) stock even though I knew it was fully valued at the time. The thing about investing is there’s no absolute right or wrong answer. The path is only clear in hindsight.
I remember last time I traded out of Fortis stock, it did pull back. But eventually, it worked its way steadily higher. That’s the type of business it is. If you’re looking for a dividend stock that will increase its dividend year after year, Fortis is a solid pick, as a regulated utility that earns stable and predictable returns.
I’m thankful that Fortis stock remains a part of my dividend portfolio. And if it becomes cheap enough again, I’ll pick some more shares up if I have excess cash. It’s the kind of dividend stock that doesn’t require much monitoring.