There are just a few TSX shares I discuss quite a bit about regularly, and a type of is dividend inventory NorthWest Healthcare Properties REIT (TSX:NWH.UN). NorthWest inventory hasn’t been round lengthy, however there’s just a few the explanation why I proceed to advocate it as a long-term maintain.

At the moment, I”ll go into why the dividend inventory is true for many portfolios, and why this inventory yielding 8.2% is one I proceed to purchase proper now.

Steady business

The first purpose that I usually advocate this dividend inventory is the business it’s in. Whereas there are numerous actual property funding trusts (REIT) on the TSX right this moment, there aren’t others within the healthcare business. And that’s the important thing right here.

In case you have a look at analyst suggestions for purchases throughout a downturn, healthcare comes up quite a bit. There’s a purpose for this, in fact. That’s as a result of healthcare is required it doesn’t matter what occurs. It’s important. We noticed this in the course of the pandemic, nevertheless it has remained the identical each earlier than and after.

NorthWest inventory due to this fact is a robust buy, specializing in healthcare properties of each variety. However what’s extra, these properties are situated around the globe! It owns properties within the Netherlands, Australia, the USA and naturally Canada, amongst different nations. So that you get diversification any method you slice it.

Large worth

Then there’s the worth behind this dividend inventory. Once more, this may be discovered it doesn’t matter what method you have a look at it. First, there’s the share value itself. NorthWest inventory presently trades at 8.3 instances earnings, placing it in worth territory. Shares are additionally down this yr by 24% within the final yr alone!

But it surely additionally has worth by way of its fundamentals. In case you have a look at firm earnings studies, you’ll see that NorthWest has a median lease settlement of round 14 years as of writing. Additional, it has a 97% occupancy fee! That’s recurring income you possibly can stay up for for greater than a decade.

And but, the corporate continues to be open for extra alternatives sooner or later. NorthWest inventory continues to have a robust steadiness sheet, utilizing its income to buy extra properties. So regardless of not rising its dividend since approaching the TSX right this moment, it’s placing that income to good use.

And naturally a dividend to match

The rationale you probably clicked onto this text is as a result of this dividend inventory has a dividend yield at 8.2% as of writing. That dividend comes out every month at $0.80 per share. Which means even a comparatively small funding might nonetheless herald huge passive revenue.

However there’s a purpose I’m repeatedly shopping for this dividend inventory. It’s not solely to develop my passive revenue quantity, but additionally due to the long-term development I’m more likely to obtain. Proper now shares are down, so I’m taking the chance to select up extra, improve my passive revenue, and look forward to a rebound when the market recovers.

Moreover, I’m then placing all this to work by reinvesting within the dividend inventory repeatedly. By doing so, I’ll proceed to construct wealth long run. And that’s all the time the final word purpose.