Collect $1,000 in Monthly Passive Income From 2 High-Yield Dividend Stocks

Income investors should consider these high-yield REITs for yields of up to 10.6% in monthly passive income.

| More on:

Now’s the best time in 10 years to shop for monthly passive income. The flash market crash dragged down stock prices and boosted the yields of stocks. If you’re looking for high-yields stocks in particular, you should turn your attention to these Real Estate Investment Trust (REITs).

NorthWest Healthcare Properties REIT

NorthWest Healthcare Properties REIT (TSX:NWH.UN) offers monthly passive income that you’ll drool over. The stock is 42% cheaper than it was in February. At $7.54 per unit at writing, the globally diversified healthcare REIT offers a whopping yield of 10.6%.

Over the years, NorthWest Healthcare Properties has forged strong relationships with leading healthcare operators, including LifeLabs and Shoppers Drug Mart in Canada, Healthscope in Australia, and Rede D’Or in Brazil.

The REIT has about 175 properties, including hospitals, healthcare facilities, and medical office buildings. Its portfolio has a weighted average lease expiry of nearly 14 years, including cash flows that are indexed to inflation. Coupled with a high occupancy of 97.3% and a payout ratio of about 87%, its high yield is quite secure.

Investing merely $113,208 in the REIT will generate $1,000 of monthly passive income. The REIT’s cash distributions tend to be capital gains or return of capital. The cash distributions are therefore taxed like capital gains eventually.

Specifically, the return of capital portion reduces your adjusted cost basis, which means that the portion is tax deferred until you sell your units or until your adjusted cost basis turns negative.

Ultimately, it means that you should consider holding NWH.UN shares in a taxable or Tax-Free Savings (TFSA) account.

Dream Industrial REIT

Dream Industrial REIT (TSX:DIR.UN) also provides juicy monthly passive income. The stock is 43% cheaper from its high in February. At $8.02 per unit at writing, the globally diversified healthcare REIT offers a high yield of 8.7%.

Along with its Canadian presence, Dream Industrial REIT has expanded its portfolio into the United States, and more recently, Europe. Its portfolio consists of gross leasable area of 26 million square feet across roughly 263 properties.

The REIT’s rationale for expanding into Europe includes the fact that there are lower levels of e-commerce penetration in Europe than in North America.

Combined with a low supply of industrial and logistics space and leases that are largely indexed to inflation, Dream Industrial should be able to experience decent rental rate growth from this geography in a normal economic market.

Last year, Dream Industrial REIT posted strong organic growth with 4.1% comparable properties net operating income growth.

You can generate monthly passive income of $1,000 from the industrial REIT by investing $137,458. The REIT’s cash distributions can consist of other taxable income, foreign income, return of capital, and capital gains. Therefore, holding the stock in a TFSA, RRSP, or RESP may be more suitable.

The Foolish bottom line

If you need monthly passive income, the current bear market gives you an excellent opportunity to buy quality high-yield REITs like NorthWest Healthcare Properties REIT and Dream Industrial REIT at a steep discount.

This means that not only can you get yields of about 8-10% from them, but you can also expect amazing price appreciation potential over the next few years after the market normalizes.

Should you invest $1,000 in Baytex Energy right now?

Before you buy stock in Baytex Energy, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Baytex Energy wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Kay Ng has no position in any of the stocks mentioned. The Motley Fool recommends DREAM INDUSTRIAL REIT and NORTHWEST HEALTHCARE PPTYS REIT UNITS.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How I’d Invest $7,000 in My TFSA for $660 in Tax-Free Annual Income

Canadians looking for ways to make the most of the new TFSA contribution room should consider investing in these two…

Read more »

Doctor talking to a patient in the corridor of a hospital.
Dividend Stocks

This Dividend King Paying 7.5% in Monthly Income Is a Must-Have

This high-yield TSX stock might not be a textbook Dividend King, but its reliable monthly payouts and improving financials make…

Read more »

path road success business
Dividend Stocks

How to Invest $50,000 of Tax-Free Cash as Canada-US Trade Uncertainty Escalates

Few Canadian stocks are as easy a choice as this one, making it perfect during volatile periods.

Read more »

monthly desk calendar
Dividend Stocks

How I’d Generate $200 in Monthly Income With a $7,000 Investment

Want to establish $200 in monthly income (or even more?) Here's an easy way to start today that will provide…

Read more »

Printing canadian dollar bills on a print machine
Dividend Stocks

Got $25,000? Turn it Into $250,000 in a TFSA as the Canadian Dollar Rises

Investing doesn't have to be risky or difficult, especially with this top stock.

Read more »

A woman shops in a grocery store while pushing a stroller with a child
Dividend Stocks

Where Will Loblaw Be in 3 Years?

Loblaw (TSX:L) stock could be a stellar performer as tariffs and headwinds move in on Canada's economy.

Read more »

customer uses bank ATM
Dividend Stocks

Where Will National Bank Be in 5 Years?

National Bank of Canada (TSX:NA) stock still looks like a great deal at these levels.

Read more »

A worker overlooks an oil refinery plant.
Dividend Stocks

The Smartest Industrial Stock to Buy With $3,000 Right Now

Aecon is a value stock that's benefiting from strong infrastructure spending today and in the years to come.

Read more »