Imagine you had a second job where you didn’t have to do anything. You can just laze around as you watch cash come in each and every month. This is what it’s like when you invest in passive-income dividend stocks that offer monthly dividends.
Right now, there are so many of these companies offering great deals. In fact, some of them trade so low that they offer dividends nearing double digits!
That’s why today, I’m going to recommend two dividend stocks with yields above 8.5%. These companies are strong and in essential services, providing investors with long-term growth. Not to mention growth coming out of this current downturn. Meanwhile, you can look forward to passive income every single month.
Slate Grocery REIT
Slate Grocery REIT (TSX:SGR.UN) is involved with the acquisition, ownership and leasing of its grocery-anchored retail properties. These are located around the United States, offering diversified revenue from these revenue-producing commercial real estate properties.
It continues to be a strong buy recommendation by analysts, mainly because of this range of properties all anchored to essential services. These proved valuable during the pandemic and continue to prove valuable today.
Yet Slate stock currently trades at just 4.75 times earnings! Shares are down 19% in the last year, as of writing as well as 13% year to date. So, you can therefore get a huge deal on this stock that’s bound to bounce back, while it currently offers a dividend yield at 8.79%. This comes out at $1.17 annually, or $0.0975 per share each month.
NorthWest REIT
We need to eat, and that’s why Slate stock is a great option. But we will also always need healthcare. Although the types of treatments may change, the properties where our health is treated won’t. That is why NorthWest Healthcare Properties REIT (TSX:NWH.UN) is another solid option for long-term holders.
Despite being a strong buy recommendation from its diversified portfolio, it’s of huge value today. The company maintained strength during the pandemic and continues to expand as well. Over the last few years, it’s made billions in acquiring healthcare properties around the world. This also included a healthcare real estate investment trust in Australia.
But NorthWest stock continues to trade in value territory at 0.821 times book value. Shares are 41% in the last year and 15% year to date, as of writing. So, again, you can bring in a huge bargain with this stock that continues to average lease agreements at 14 years! That’s over a decade of guaranteed income that can be passed on to investors.
NorthWest stock currently holds a dividend yield at 9.88%, coming out as $0.80 per year. That comes to $0.0667 per share on a monthly basis.
Bottom line
There are a lot of stocks trading in value territory, even some other monthly dividend stocks. But given that we will need to eat and have our health looked after, these two dividend stocks certainly look like strong long-term options for investors to consider today — especially while dividend yields remain above 8.5% for shareholders, passing out dividends each and every month!
