How You Can Make $500 in Dividends Every Month With Less Than $100k

First National Financial Corp (TSX:FN) and these two other dividend stocks can provide your portfolio with a lot of recurring cash flow.

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If you’ve got money saved up and are looking for ways to put it to work, dividend stocks provide a great option. Inside of a TFSA, eligible investments can earn dividend income tax-free and are a great way to add a recurring stream of cash flow for your day-to-day expenses. Below, I’ll show you which stocks you can invest in to help you earn $500 a month in dividends with less than $100,000.

First National Financial (TSX:FN) is a good dividend stock that doesn’t offer a lot of volatility, which is great for investors that don’t want to keep a close eye on their investments. Year to date, returns have been flat, and in five years the stock has climbed 25%. While those returns may not be much to be excited about, there’s definitely a lot for dividend investors to like about First National.

The lending company has produced solid, consistent results this year, and the company is going to be paying investors a special dividend, just like it did a year ago. While these payments are by no means a guarantee, it’s definitely a good sign that the company is looking to reward its investors.

With a yield of 6.4%, I’d be comfortable with suggesting an investment of around $35,000 in this stock given its stability and long-term performance. This would add $188 in dividends to your portfolio every month.

Boston Pizza Royalties Income Fund (TSX:BPF.UN) has struggled this year, as the stock has plummeted by more than 25% year to date. However, with the stock trading a little more than its book value, it’s an attractive buy given that you’re betting on the success of a very popular and stable restaurant chain like Boston Pizza. While the fund may have stumbled a little this year, over the long term I don’t see a significant amount of risk here.

However, given how bearish it has been lately, I’d invest around $20,000 into this stock, which is currently paying investors 8.8% per year and would provide you a monthly payment of about $147.

RioCan Real Estate Investment Trust (TSX:REI.UN) is another good place to store your money, as this REIT is well diversified and has performed very well over the years. The stock price has increased by less than 2% so far this year, and it is still trading right around its book value. As one of the top REITs in the country, you’re looking at what’s a fairly stable investment, especially given how strong the economy has been doing recently.

At a dividend of 5.8%, RioCan may be the lowest payout on this list, but it’s also likely the safest. If you were to put $35,000 in this stock, that would yield you monthly payments of $170 and put you at more than $500 a month across these three stocks.


Here’s a quick summary of the above investments and how you could earn $500 a month with $90,000 of funds invested:

Stock Invested Amount Yield Monthly Payment
First National Financial $35,000 6.4% $187
Boston Pizza Royalties $20,000 8.8% $147
RioCan Real Estate $35,000 5.8% $169
Total $90,000 6.7% (Average) $503

While the expected dividend payments look good on paper, investors should note that there’s no guarantee a payout will continue, and there’s certainly no obligation for a company to continue paying one.

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 David Jagielski has no position in any of the stocks mentioned.

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