Motley Fool investors with a bit of cash on their hands are probably filled with worry at the moment. It’s a volatile market, leaving very few opportunities to be had. But that doesn’t mean there are no opportunities. This one real estate investment trust (REIT) stock is a solid place to start.
NorthWest Healthcare
NorthWest Healthcare Properties REIT (TSX:NWH.UN) remains a strong performer, even in this volatile market. The REIT stock invests in a diverse range of healthcare properties around the world. This gives Motley Fool investors access to different markets and different properties, all within the strong healthcare sector.
In fact, healthcare remains a sector receiving a lot of investment — on both a private and public scale. COVID-19 shook the shoulders of many countries that realized a change had to be made. And that left these essential properties with renewed leases and expanding portfolios.
NorthWest is now an REIT stock that continues to make acquisitions with a strong balance sheet on hand. Furthermore, it’s posted record net asset value, as it continues to pick up other healthcare REITs and properties.
Past performance
What Motley Fool investors will like about this REIT stock is that it’s been a solid performer with steady growth. It’s not exciting growth, but I’d count that for and not against the company. You can look forward to steady and stable gains that won’t suddenly drop during a volatile market. Like the one we’re in now.
Over the past 12 years, shares of NorthWest have risen 28%. That would be a compound annual growth rate (CAGR) of about 2.25% — so, nothing huge. But that’s stable growth that’s been growing much faster in the last few years. In fact, since the pandemic started, shares of the REIT stock are up 70%, even after a drop recently.
And, of course, you then get the addition of a stable and high dividend yield of 6.03% as of writing. You can then use that cash to reinvest into the solid stock.
Adding up
Let’s say you had three decades to pick up this REIT stock and see it grow, reinvesting dividends along the way. From that, you just invest that $5,000 and leave it alone but for dividend reinvestment.
If you saw the same amount of growth in the last 12 years, that would still turn your original $5,000 into $36,969 in 30 years! If you saw growth similar to what we’ve seen since March 2020, that could turn your investment into a whopping $274,000.
Of course, I’d lean more towards the former version, but even that will see your shares in this REIT stock explode over the next 30 years. Furthermore, you could see them double in just nine years at those levels!
Bottom line
You don’t have to make risky investments to see shares grow or even double. Instead, all Motley Fool investors need is to find stable, predictable growth from companies like this REIT stock. Share growth isn’t huge, dividends don’t grow all that much, and even still, it has the ability to see your $5,000 double in less than a decade.
