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Turn Your Extra Cash Into $660 of Monthly Income

It can feel really good having a great big savings account that you can pore over. I mean, who doesn’t want to see how much money they have, all conveniently added up in one place? In fact, I know a bunch of people who do just that, letting their funds just sit there… for years.

But what if there was a way you could increase that chunk of change substantially, while also getting an additional source of income every quarter or even every month that’s just as stable as a paycheque?

That’s the beauty of the Tax-Free Savings Account (TFSA), which offer investors current contribution room of $63,500, increasing that room every year since its birth in 2009. The money you put in there can’t be touched by anyone, including the government. That means you can buy all the stock you want without worrying about capital gains.

Now here’s something even better if you have a partner. If you both open up a TFSA and invest appropriately, you can be bringing in some monthly income that can go right toward your shared expenses. That’s a total investment of $127,000! In this case, I’m looking at $800 of monthly income. That’s groceries, property taxes, or stashing away for your next vacation.

Sound nice? It’s not a dream. You can make this a reality by investing in these three stocks today.

Enbridge

Enbridge Inc.  (TSX:ENB)(NYSE:ENB) is North America’s pipeline king, with energy infrastructure stretching across Canada and down to Mexico through its diverse system of pipelines. The company already has a vast network, but it’s currently in expansion mode, adding to its existing pipelines by reinvesting $16 billion over the next few years in addition to its long-term contracts that have set the company up for stable cash flow for several decades.

This stable cash means that the company has been able to increase its dividend by 10% year over year, with Enbridge just raising it by 10% and aiming to do so again next year. After that, the company thinks it will continue to raise the dividend by 5%-7% each year. Right now, the stock has a dividend yield of 5.93%, distributed quarterly.

So if you and your partner invest $42,300 ($21,150 each) into Enbridge, you’re looking at annual income of $2,616.65, or monthly income of $218.

Inter Pipeline

Next up we have Inter Pipeline Ltd. (TSX:IPL). This midstream pipeline, storage, and processing company remains a strong choice for any TFSA. With a $3.5 billion development budget for the next few years, investors should continue to see growth in this company’s annual EBITDA.

The company recently reported record results in its 2018 earnings report, raising its dividend for the tenth year in a row. As of writing, that dividend yield is a whopping 8.3%; any future growth on top of that would be icing on the cake for current investors.

That means if we take that $42,300 yet again and invest it into Inter Pipeline, investors would be receiving an annual dividend income of $3,501.11, or $291.76 monthly.

BMO

Stepping away from the pipeline business, we step into familiar territory with Bank of Montreal  (TSX:BMO). This solid bank stock has a lot to offer investors, especially those seeking passive income. The bank reported solid results for its most recent quarter, with adjusted net income coming in at $1.52 billion, an increase of 4% from the same period last year.

That cash came in from the stellar performance from its U.S. operations, which is great news for investors who want exposure to both Canadian and American economies. As this growth continues, investors can expect its strong dividend to continue to grow, with management aiming to pay out 40-50% of earnings as dividends.

That dividend yield is now at 4.2%. So if we take that $42,300 that gives annual income of $1,789, or monthly income of $149.

Foolish takeaway

By you and your partner investing in these three strong stocks, not only should you continue to see strong growth for decades, but you’ll be bringing in extra income that everyone can use. These three alone will bring in monthly passive income of $658.76, and annual income of $7,905.12. That’s not a bad little addition to your house fund.

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Fool contributor Amy Legate-Wolfe owns shares of ENBRIDGE INC. The Motley Fool owns shares of Enbridge. Enbridge is a recommendation of Stock Advisor Canada.

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