How to Get Big Monthly Income for the Rest of Your Life

BMO Canadian High Dividend Covered Call ETF (TSX:ZWC) is a one-stop-shop investment with powerful long-term potential.

| More on:

Whether you’re a retiree with a sizable nest egg, a soon-to-be retiree who’s about to hang up the skates, or a millennial who’s embraced the FIRE (financial independence, retire early) movement, we all share the dream of being able to make money while we sleep and while we enjoy the finer things in life.

Although a passive-income stream that’s large enough to support your lifestyle may seem difficult to achieve (especially for young people), the fact of the matter remains that a large, sustainable income stream is not only possible but inevitable for most disciplined investors — especially financially literate young investors who’ve decided they want to achieve financial independence before they hit their golden years.

In a previous piece, I’d highlighted how quickly a TFSA account could swell through the power of tax-free compounding.

If you’re a millennial, you’ve got more time on your side, but contrary to popular belief, you shouldn’t recklessly speculate or overexpose yourself to risk just because you can make it back before retirement. From an opportunity cost perspective, a young person’s losses are actually a heck of a lot more valuable to them when you consider the decades’ worth of tax-free compounding that may stand to be surrendered. Amplified losses would still cost you time as you wait for your holdings to recover back to breakeven, and even if you have plenty of time, it shouldn’t be wasted.

Thus, millennials and all other investors should invest their money wisely in one-stop shop high-income ETFs like BMO Canadian High Dividend Covered Call ETF (TSX:ZWC). ZWC has a bountiful 6.27% distribution yield and will provide investors with a high level of safety and security through thick and thin.

The constituents of the ETF are some of the finest blue-chip dividend stocks on the Canadian market, and the covered call strategy will provide a meaningful hedge (from a premium income stream) if the TSX continues to drag. You’re getting the best of both worlds with the ZWC, an excellent all-weather investment that keeps things simple.

Foolish takeaway

Whether you’re a millennial who needs a supplement to your regular income stream or a retired senior who needs extra cash to spoil the grandkids, the ZWC ETF is a simple, yet effective way to obtain a safe, reliable income stream. And within a TFSA, the tax man won’t come knocking for a piece of your income stream!

Stay hungry. Stay Foolish.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette has no position in any of the stocks mentioned.

More on Dividend Stocks

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »

Payday ringed on a calendar
Dividend Stocks

3 Dividend Stocks That Pay Me More Than $54.57 Per Month

These three dividend stocks have done me well over the years, so let's look at how much I've gotten in…

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Royalty: 3 Fabulous Stocks to Buy Now for Decades of Passive Income

Rogers Communications stock and Canadian Natural Resources stock could pay you dividends for decades to come.

Read more »

Dividend Stocks

The Top Canadian REITs to Buy in April 2024

For growth and dividends this April, look to these two REITs that have quite the promising present as well as…

Read more »