Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

3 Stocks to Create $454 in Monthly Passive Income for Your TFSA

Stock Markets Jun 03, 2022 11:15
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. 3 Stocks to Create $454 in Monthly Passive Income for Your TFSA
 
NPI
-0.87%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Canadians need cash now more than ever. And they need it on a consistent basis. But it can be hard to find companies that pay out a monthly dividend that you also want to hold for long periods of time.

That’s what a Tax-Free Savings Account (TFSA) is for. While you don’t necessarily need to hoard investments until retirement, it gives you the flexibility to take out cash when you need it. And that could be over the next year, as inflation and interest rates continue to hit hard.

Today I’m going to offer up three dividend stocks that you can use in your TFSA for monthly passive income.

Northland Power (TSX:NPI) I’ve been shying away from oil and gas stocks lately, especially when it comes to long-term holds. These companies are creating some strong returns right now, but, long term, the world is shifting to clean energy. This is why Northland Power (TSX:NPI) is a solid option right now with low volatility.

The clean energy company is a monthly passive-income producer with a dividend yield of 3.18% as of writing. It continues to fly by earnings estimates and raises its dividend only when it’s prudent to do so. That means you get consistent payouts that investors can look forward to for years.

Sierra Senior Living Next up we have Sierra Senior Living (TSX:SIA), and senior living is another long-term investment I would highly recommend. Baby boomers are starting to reach the age where health problems start to hit on a consistent basis, namely in their 80s. When this happens, there is bound to be a massive injection by the government to Canada’s largest population.

That means Sierra Senior Living is a strong long-term strategy for your TFSA and could mean more dividend growth in the near and far future. It currently offers a 6.89% dividend yield on the TSX today. Just like Northland Power, it raises its dividend only when it can, allowing you to look forward to stable income.

Slate Grocery REIT Finally, Slate Grocery REIT (TSX:SGR.U) is a solid passive-income producer as well, especially as it’s anchored to grocery companies across the United States. These essential services allowed the dividend stock to continue to bring in cash, increase revenue, and pay out dividends.

It now offers a whopping dividend yield of 7.13% on the TSX today. The only thing I’d flag here is that dividend fluctuates from time to time. While over the last few years, it has remained around the $0.09 range, sometimes it’s above, and other times it’s below. Still, those payments remain solid for passive-income seekers.

Creating passive income If you’re seeking passive income for your TFSA on the TSX today, all three of these monthly producers are strong options. To create $454 per month, you would need to create passive income of $1,816 annually from each dividend stock.

As of writing, that would mean an investment of $57,975 for Northland Power, $26,235 for Sierra Senior Living, and $25,507 for Slate Grocery REIT. That’s a total of $109,717, which is beyond your TFSA contribution room. However, if you have a partner, you can slip it down the middle and both invest $54,858, with room to spare for other long-term investments.

The post 3 Stocks to Create $454 in Monthly Passive Income for Your TFSA appeared first on The Motley Fool Canada.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

This Article Was First Published on The Motley Fool

3 Stocks to Create $454 in Monthly Passive Income for Your TFSA
 

Related Articles

FedEx Earnings beat, Revenue misses In Q2
FedEx Earnings beat, Revenue misses In Q2 By Investing.com - Sep 28, 2022 1

Investing.com - FedEx (NYSE:FDX) reported on Tuesday second quarter earnings that beat analysts' forecasts and revenue that fell short of expectations. FedEx announced earnings...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email