Advertisement
Canada markets closed

  • S&P/TSX

    21,969.24
    +83.86 (+0.38%)
     

  • S&P 500

    5,099.96
    +51.54 (+1.02%)
     

  • DOW

    38,239.66
    +153.86 (+0.40%)
     

  • CAD/USD

    0.7316
    -0.0007 (-0.10%)
     

  • CRUDE OIL

    83.66
    +0.09 (+0.11%)
     

  • Bitcoin CAD

    87,213.73
    +766.43 (+0.89%)
     

  • CMC Crypto 200

    1,394.57
    -1.97 (-0.14%)
     

  • GOLD FUTURES

    2,349.60
    +7.10 (+0.30%)
     

  • RUSSELL 2000

    2,002.00
    +20.88 (+1.05%)
     

  • 10-Yr Bond

    4.6690
    -0.0370 (-0.79%)
     

  • NASDAQ

    15,927.90
    +316.14 (+2.03%)
     

  • VOLATILITY

    15.03
    -0.34 (-2.21%)
     

  • FTSE

    8,139.83
    +60.97 (+0.75%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • CAD/EUR

    0.6838
    +0.0017 (+0.25%)
     

Passive-Income Investing: Here’s How to Make $99/Week on Your Couch!

Ambrose O'Callaghan
·4 min read
Profit dial turned up to maximum
Profit dial turned up to maximum

Written by Ambrose O'Callaghan at The Motley Fool Canada

Yesterday, I’d discussed why passive-income investors could work to generate $17/day. Better yet, investors should look to build their income-oriented portfolio in a Tax-Free Savings Account (TFSA). Today, I want to continue to explore this framework to generate even more tax-free income. We’ll look at four dividend stocks that can help us achieve another well-earned income goal.

This dividend stock will rise with Canada’s aging population

Extendicare (TSX:EXE) is the first dividend stock passive-income investors should look to snatch up in our hypothetical TFSA. This Markham-based company offers housing, care, and related services to Canadian seniors. Its shares have climbed 16% year over year as of close on January 18.

ADVERTISEMENT

The stock closed at $7.24 per share on that same day. In our hypothetical, we’ll snatch up 2,800 shares of Extendicare, which works out to a purchase price of $20,272. This dividend stock offers a monthly distribution of $0.04 per share, which represents a tasty 6.6% yield. Our shares will allow us to generate roughly $25.84/week in tax-free income in our TFSA.

Passive-income investors can also get defence out of this REIT

Northwest Healthcare REIT (TSX:NWH.UN) is a Toronto-based real estate investment trust (REIT) that offers exposure to a portfolio of global healthcare real estate. I’d suggested that investors should target this defensive REIT in late 2021. Shares of Northwest REIT have climbed 4.5% in the year-over-year period.

This stock closed at $13.70 on January 18. We can buy 1,480 shares of Northwest REIT for a purchase price of $20,276. The dividend stock last paid out a monthly distribution of $0.067 per share. That represents a strong 5.8% yield. Our holdings will allow us to churn out $22.88 week in tax-free passive income.

Here’s another stock passive-income investors should trust

TransAlta Renewables (TSX:RNW) is the third dividend stock I’d target for a passive-income portfolio. This Calgary-based company develops, owns, and operates renewable power generation facilities. The dividend stock dropped 9.7% in 2021. Its shares have plunged another 11% to open 2022.

Shares of TransAlta Renewables closed at $16.67 per share on January 18. We’ll snag 1,220 shares at a purchase price of $20,337.40 in our TFSA. TransAlta last paid out a monthly dividend of $0.078 per share, representing a strong 5.6% yield. Our 1,220 shares will allow us to generate $21.96/week in passive income in our TFSA.

One more dividend stock that can churn out consistent passive income

Timbercreek Financial (TSX:TF) is the fourth and final dividend stock I’d look to target to churn out passive income in 2022. This top non-bank lender has seen its shares increase 10% from the prior year.

This dividend stock closed at $9.68 per share on January 18. For our final investment, we’ll buy 2,120 shares of Timbercreek at a purchase price of $20,521.60. This dividend stock last paid out a monthly distribution of $0.058 per share. That represents a monster 7.1% yield. TFSA investors can generate $28.37/week in tax-free income with these shares.

Conclusion

These investments in our hypothetical TFSA work to churn out $99/week in tax-free passive income. That is a solid return to count on for the rest of 2022.

The post Passive-Income Investing: Here’s How to Make $99/Week on Your Couch! appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Extendicare Inc?

Before you consider Extendicare Inc, we think you’ll want to hear this.

Our S&P/TSX market doubling Stock Advisor Canada team just released their top 10 starter stocks for 2022 that we believe could be a springboard for any portfolio.

Want to see if Extendicare Inc made our list? Get started with Stock Advisor Canada today to receive all 10 of our starter stocks, a fully stocked treasure trove of industry reports, two brand-new stock recommendations every month, and much more.

Click Here to Learn More About Stock Advisor Canada Today

More reading

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.

2022