Advertisement
Canada markets closed
  • S&P/TSX

    21,552.35
    +188.74 (+0.88%)
     
  • S&P 500

    5,137.08
    +40.81 (+0.80%)
     
  • DOW

    39,087.38
    +90.99 (+0.23%)
     
  • CAD/USD

    0.7376
    +0.0011 (+0.15%)
     
  • CRUDE OIL

    79.81
    +1.55 (+1.98%)
     
  • Bitcoin CAD

    84,063.83
    +33.44 (+0.04%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,091.60
    +36.90 (+1.80%)
     
  • RUSSELL 2000

    2,076.39
    +21.55 (+1.05%)
     
  • 10-Yr Bond

    4.1800
    -0.0720 (-1.69%)
     
  • NASDAQ

    16,274.94
    +183.02 (+1.14%)
     
  • VOLATILITY

    13.11
    -0.29 (-2.16%)
     
  • FTSE

    7,682.50
    +52.48 (+0.69%)
     
  • NIKKEI 225

    39,910.82
    +744.63 (+1.90%)
     
  • CAD/EUR

    0.6802
    -0.0012 (-0.18%)
     

How I’d Invest $1000 in February to Make Easy Passive Income

Retirees sip their morning coffee outside.
Source: Getty Images

Written by Robin Brown at The Motley Fool Canada

If you’ve got some fresh capital to invest in February, there are still plenty of opportunities to collect passive income. Certainly, the market has quickly recovered this year. Yet, many dividend stocks continue to trade at attractive valuations with decent dividend yields.

If you have $1,000 to invest, here are three top TSX stocks to consider buying for easy passive income.

Dream Industrial REIT: Quality real estate for monthly passive income

Dream Industrial REIT (TSX:DIR.UN) is a good name to buy for monthly passive income. At $14.40 per unit, it trades with a still attractive 5% distribution yield. Dream is a leading owner and manager of industrial real estate in Canada, the U.S., and Europe.

Dream has enjoyed high-single digit cash flow per unit growth in 2022. Given that its average portfolio rents are significantly below market, it should capture strong organic growth from new leases and rent renewals in 2023.

Even after a 23% run-up so far this year, the stock is still cheap and trades at a discount to its private market value. Put $1,000 into Dream stock and you’d earn $4.03 of monthly passive income (or $48.30 annually).

Brookfield: A global infrastructure stock with years of passive income growth

Another stock that would make a good buy in February is Brookfield Infrastructure Partners (TSX:BIP.UN). At $46.44 per unit, it earns a 4.17% distribution yield. It operates a diversified portfolio of high-quality infrastructure businesses focused on energy, transportation, utilities, and data.

Brookfield just announced year-end results for 2022. Funds from operation (FFO) per unit (its core measure of cash flows/profitability) grew 12% to $2.71 per unit. For a utility-like business, that is impressive growth. Likewise, the company just increased its 2023 dividend by a nice 6%. It already has an impressive decade-plus track record of dividend growth.

After the recent dividend increase, a $1,000 investment in BIP stock would earn $10.86 of quarterly passive income (or $43.43 annually).

AltaGas: A play on energy and utilities

AltaGas (TSX:ALA) is a great passive income stock if you want exposure to utilities and energy. At $24.80 per share, it pays a 4.6% dividend yield. The North American energy infrastructure operator runs a large natural gas utility business in the United States. This is complimented by an energy processing and midstream business in Western Canada.

AltaGas has been in the process of a turnaround for several years. It has sold off non-core assets and drastically reduced debt to a much more sustainable level. Going forward, its utility business is expected to enjoy above-average growth. As a result, AltaGas expects to grow earnings per share by a nice mid-single digit rate in 2023.

In December, AltaGas increased its dividend by 6%. This is its second dividend increase since 2020. Put $1,000 into this passive income stock and you would earn $11.20 of dividends per quarter (or $44.80 per year).

The Foolish takeaway

Even if you only have $1,000, you can start building streams of passive income. Pick good quality businesses that also have growth ahead. Re-invest your dividends back into more passive income-paying stocks and your passive income stream could compound quicker than you think.

COMPANY

RECENT PRICE

NUMBER OF SHARES

DIVIDEND

TOTAL PAYOUT

FREQUENCY

Dream Industrial REIT

14.37

69

$0.05833

$4.03

Monthly

Brookfield Infrastructure Partners

46.41

21

$0.517

$10.86

Quarterly

AltaGas

24.81

40

$0.28

$11.20

Quarterly

The post How I’d Invest $1000 in February to Make Easy Passive Income appeared first on The Motley Fool Canada.

Free Dividend Stock Pick: 7.9% Yield and Monthly Payments

Canada’s inflation rate has skyrocketed to 6.9%, meaning you’re effectively losing money by investing in a GIC, or worse, leaving your money in a so-called “high interest” savings account.

That’s why we’re alerting investors to a high-yield Canadian dividend stock that looks ridiculously cheap right now. Not only does it yield a whopping 7.9%, but it pays monthly!

Here’s the best part: We’re giving this dividend pick away for FREE today.

Claim your free dividend stock pick * Percentages as of 11/29/22

More reading

Fool contributor Robin Brown has positions in Brookfield Infrastructure Partners and Dream Industrial Real Estate Investment Trust. The Motley Fool recommends Brookfield Infrastructure Partners and Dream Industrial Real Estate Investment Trust. The Motley Fool has a disclosure policy.

2023