If you haven’t saved up as much as you should have for retirement, there are ways that you can add some recurring cash flow to help make ends meet without needing an astronomical amount of money. While the temptation may be to put your money into the highest-yielding stocks on the TSX, that’s often not the safest route to take.
I’ll show you how you can earn over $300 every month by investing $50,000 in a diverse portfolio of stocks, all of which should provide you with great growth opportunities as well.
AltaGas Ltd. (TSX:ALA) currently pays investors over 8.3% per year, and it’s a stock that normally increases its payouts as well. Even if we don’t factor in the growth that you’ll likely see over the years, the stock will still provide you with great returns.
A $15,000 investment in AltaGas would net you $104 a month in dividend income for a total of $1,247 over a full year.
The stock hasn’t performed well in the past year, as weak oil prices and a struggling Alberta economy have made conditions unfavourable for growth. However, with strong fundamentals and a good business model, there’s plenty of room for the stock price to rise from here.
Boston Pizza Royalties Income Fund (TSX:BPF.UN) is another good dividend stock to invest in as it currently yields 7% per year. Investing $15,000 in this stock would earn you a monthly dividend of $87.
Unlike AltaGas, you’re taking on less risk with this stock, since it isn’t reliant on commodity prices and will generally see stronger sales as the economy continues to grow and as consumers have more disposable income. This is a great industry to invest in as — despite all the technological advancements we’ve seen in other industries — this is one that remains very stable and also very popular.
NorthWest Health Prop Real Est Inv Trust (TSX:NWH.UN) offers investors a great way to diversify and invest in health care through the REIT’s broad portfolio of assets. It also pays a solid 7% yield, and with a $10,000 investment, you would earn more than $59 every month in dividends.
REITs generally offer a lot of stability, and investing in healthcare will only make the investment that much more secure, given how necessary those facilities are in our day-to-day lives.
TransAlta Renewables Inc. (TSX:RNW) is long-term growth stock that may still be ahead of its time. Renewable energy is very popular among consumers, but it still may be many years away from being a real cost-effective option for many people.
Currently, the stock pays a dividend of 7.5%, and a $10,000 investment here would earn you an extra $63 every month.
TransAlta has good fundamentals, and in the trailing 12 months it generated a profit margin of over 10%. Year to date the stock is down more than 7%, and at only 1.5 times its book value, it could be a great value buy.
Following this mix of stocks, you would be able to generate you more than $310 every month with a total investment of $50,000. In addition, the stocks listed here have a lot of potential upside, so your returns could be even higher.
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Fool contributor David Jagielski owns shares of ALTAGAS LTD. AltaGas and NorthWest Health are recommendations of Stock Advisor Canada.