Yahoo Finance 3 TSX Stocks to Help Turn $30,000 Into $1,500 Every Year
Written by Robin Brown at The Motley Fool Canada
Canadian investors love passive income from TSX stocks. Fortunately, Canada has a plethora of dividend stocks to choose from. You can get income from a wide array of sectors, including real estate, infrastructure, energy, banking, and even technology.
If you’ve got $30,000 to invest today, here are three TSX stocks that could help you earn nearly $1,500 ($1,483.44, to be exact) of passive income per year.
Pembina Pipeline: A solid TSX infrastructure stock
The first TSX stock to consider putting $10,000 into is Pembina Pipeline (TSX:PPL). This is one of Canada’s largest energy infrastructure businesses. The company has carved out a niche in infrastructure and services in Western Canada.
In many instances, pipelines or midstream facilities are the only way energy producers can get their products to market. As a result, it has a strong competitive moat. Over 80% of earnings are from contracted assets. This largely supports the stability of its dividend.
After several years of strong cash generation, Pembina has a sector-leading balance sheet. This is supporting some major growth projects like the Cedar LNG terminal in Kitimat.
Pembina has historically been a dividend grower. That stalled during the pandemic. However, its dividend growth posture has returned after a couple of dividend hikes in the past few years.
This TSX stock yields 5% today. Put $10,000 into Pembina stock now, and you would earn $124.20 quarterly or $496.80 annualized.
First Capital: A steady grocery-anchored REIT
Another TSX stock to add for extra income is First Capital Real Estate Investment Trust (TSX:FCR.UN). It owns some of the best-located grocery-anchor retail properties in Canada. Everyone needs a grocery store or a pharmacy or a dollar store, regardless of the economy.
These are the main types of tenants that occupy First Capital’s portfolio. As a result, First Cap is enjoying really solid rental rate growth across its assets. It has a strong 96% rate of occupancy.
Recent investor activism has led to the real estate investment trust (REIT) focusing on unlocking value across its business. It has a massive amount of development land that is hardly valued into the stock price. The REIT has been selling off properties at valuations significantly above where its stock net asset value trades.
The REIT pays a nice 4.85% distribution yield. If its initiatives are successful, there is considerable upside in the stock. Likewise, there is room to grow its distribution. A $10,000 investment would earn $40.10 monthly, or $481.24 annualized.
Dream Industrial: A top TSX real estate stock
A final TSX stock to put $10,000 into is Dream Industrial REIT (TSX:DIR.UN). This is a great stock to get exposure to industrial real estate in Canada and Europe. Its multi-tenant properties are in very good locations.
As a result, it has seen rents significantly increase in the past few years. In fact, its average in-place rental rate is 20-30% below market rates. This means that as leases renew or it starts new leases, it will see a substantial long-term increase in its revenue and cash flows.
Overall, Dream is well-managed, and its portfolio is defensive. This TSX stock has an elevated distribution yield of 5%. If you put $10,000 into Dream stock, you would earn $42.12 monthly, or $505.40 annually.
COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
Pembina Pipeline | $55.33 | 180 | $0.69 | $124.20 | Quarterly |
First Capital REIT | $17.94 | 557 | $0.072 | $40.10 | Monthly |
Dream Industrial REIT | $13.84 | 722 | $0.0583 | $42.12 | Monthly |
The post 3 TSX Stocks to Help Turn $30,000 Into $1,500 Every Year appeared first on The Motley Fool Canada.
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Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool recommends Dream Industrial Real Estate Investment Trust, First Capital Real Estate Investment Trust, and Pembina Pipeline. The Motley Fool has a disclosure policy.
2024
