Written by Rajiv Nanjapla at The Motley Fool Canada
Investing in high-yielding dividend stocks can be a reliable means of earning a stable passive income. One has to invest around $180,000 in monthly-paying dividend stocks, which offer dividend yields of over 6.7%, to earn a monthly income of $1,000. Let’s look at three top monthly-paying dividend stocks that could help you earn $1,000 monthly.
COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND | MONTHLY DIVIDEND | FREQUENCY |
NWH | $5.08 | 11811 | 60,0000 | $0.03 | $354.3 | Monthly |
WCP | $10.47 | 5730 | 59,993 | $0.0608 | $348.4 | Monthly |
EXE | $7.37 | 8141 | 59,999 | $0.04 | $325.6 | Monthly |
Total | $1,028.4 |
NorthWest Healthcare Properties REIT
NorthWest Healthcare Properties REIT (TSX:NWH) owns and operates 219 defensive healthcare properties, with a total leasable area of 17.7 million square feet. The company was under pressure over the last few months due to concerns over rising interest rates and an increase in its leverage. However, the REIT has undertaken several initiatives, such as divesting $450 million of non-core assets. Besides, it has slashed its monthly dividend and amended, extended, and refinanced its debt facilities, strengthening its financial position.
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Besides, NorthWest Healthcare reported impressive occupancy and rent collection rates of 97% and 99%, respectively, in the December-ending quarter. Its topline grew 4.1%, primarily due to rental leaseindexation. However, the increase in interest expenses amid higher interest rates and adjustments to investment property fair values weighed on its bottom line, with its net losses increasing from $135.5 million to $188.9 million. However, the company’s initiatives could boost its profitability in the coming quarters.
Also, despite slashing dividends, its forward yield stands at a juicy 7.09%. Further, it trades at a cheaper price-to-book multiple of 0.6, making it an attractive buy.
Whitecap Resources
Oil prices have strengthened this year, with WTI (West Texas Intermediate) crude rising around 17% since the beginning of this year. The extension of voluntary production cuts by OPEC (Organization of the Petroleum Exporting Countries) and its allies has raised concerns of a supply deficit. Besides, the geopolitical tension in the Middle East has also supported oil prices. Meanwhile, few analysts predict more upsides to oil prices. Higher oil prices could benefit oil-producing companies, such as Whitecap Resources (TSX:WCP), which acquires and owns oil and natural gas-producing assets.
The Calgary-based company plans to make a capital investment of $900-$1,100 million this year, strengthening its asset base. Amid these investments, the company expects its 2024 average production to be between 165,000-170,000 barrels of oil equivalent per day, with the midpoint representing a 7% increase from the previous year. In the long run, WCP’s management expects its average production to reach 210,000 barrels of oil equivalent per day by 2028, representing annualized growth of 5%. Higher production and favourable oil prices could boost its financials, making its future dividend payouts safer.
Meanwhile, WCN currently pays a monthly dividend of $0.0608/share, with its forward yield at 6.97%. It also trades at an attractive NTM (next 12 months) price-to-earnings multiple of 6.5, making it an ideal buy.
Extendicare
Another top monthly-paying dividend stock would be Extendicare (TSX:EXE), which offers care and services to seniors across Canada. Last month, the company reported an impressive fourth-quarter performance, with its revenue growing by 12.8% amid improved occupancy, rate hikes, and increased funding. Besides, its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) increased by 47.2% to $28.7 million amid topline growth and cost management efforts.
With the growing aging population, the demand for care and services could rise, thus expanding the addressable market for Extendicare. The Markham-based company began the construction of two new LTC (long-term care) homes in the Ottawa region, therefore increasing the number of LTC homes under construction to six. Besides, it expects to open three of these LTC homes this year. So, its growth prospects look healthy.
Meanwhile, Extendicare is currently paying a monthly dividend of $0.04/share, with its forward yield currently at 6.51%. Also, its NTM price-to-sales multiple stands at 0.5, making it an excellent buy.
The post Passive Income: How Much Should You Invest to Earn $1,000 Every Month? appeared first on The Motley Fool Canada.
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Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust and Whitecap Resources. The Motley Fool has a disclosure policy.
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