TFSA Users: $10,000 in This 11.21% Dividend Stock Pays You $1,193/Year

Now is a great time to lock in a high dividend stock while prices are low!

| More on:
Businessperson's Hand Putting Coin In Piggybank

Image source: Getty Images

It can be tempting to simply go for growth stocks, value stocks, or even funds when it comes to investing. These stocks are either exciting and strong or solid and stable. But if you’re going to be a strong investor, a dividend stock is a must for your portfolio.

A good dividend stock will give you cash every single quarter or even month, like a paycheque. That passive income isn’t a luxury but can be used for reinvesting, paying down debt, or simply providing you with more household income. During a pandemic, it could even be the difference between staying afloat and sinking beneath the surface.

With more waves of the pandemic already underway, it could mean another wave of layoffs. That means you need to prepare, and quickly, for another economic downturn. Having cash on hand isn’t enough. Instead, find a strong dividend stock that you know will continue making payouts even amid a crash.

A high-yield dividend stock

There are many dividend stocks out there to choose from, and many are considered high yield right now. So, be careful. Not every dividend stock is created equal. Even as I give you this stock as an example, do your research before making a decision. That being said, Brookfield Property Partners (TSX:BPY.UN)(NASDAQ:BPY) is a strong company that could bring in solid passive income for years.

Brookfield currently pays an incredible 11.21% dividend yield as of writing. That yield is exciting, because you can see your portfolio grow by leaps and bounds if you choose to reinvest that income rather than spend it. Just a $10,000 investment in the company today would bring in annual income of $1,193!

With a pandemic now happening, that dividend stock is a strong buy, as it has continued to pay this solid dividend. You can practically count on the company continuing to deliver the dividend, even amid another crisis. This is also strengthened by the fact that the company is backed by Brookfield Asset Management, an investment firm that’s been around since 1899, with trillions to fall back on. So, right now, as you can see below, the company is still a bargain trading a below-crash levels.

So, say you were to invest $50,000 into Brookfield Property today, that would bring in $5,965 per year. By reinvesting those funds, you could see your portfolio skyrocket in the next few decades. In 20 years, you could have a portfolio worth $1.26 million with conservative share and dividend growth.

If that growth is done in a Tax-Free Savings Account (TFSA), you can see by its name that those funds would then be withdrawn tax free. That’s something you could live on for the rest of your life!

Bottom line

Whether its Brookfield Property or another dividend stock, these companies are the best way to protect your present and your future. By putting even just $10,000 into a dividend stock in a TFSA, you can bring in over a thousand dollars each year to reinvest. You’ll then relax knowing you have money set aside for an emergency and for the day you’re ready to enjoy it.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Property Partners LP.

More on Coronavirus

Dad and son having fun outdoor. Healthy living concept
Dividend Stocks

1 Growth Stock Down 15.8% to Buy Right Now

A growth stock is well-positioned to resume its upward momentum in 2024 following its strong financial results and business momentum.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Stocks for Beginners

3 Things About Couche-Tard Stock Every Smart Investor Knows

Couche-tard stock (TSX:ATD) may be up 30% this year, but look at the leadership and history of the stock to…

Read more »

Plane on runway, aircraft
Coronavirus

Can Air Canada Double in 5 Years? Here’s What it Would Take

Air Canada (TSX:AC) stock has gone nowhere since 2020. Can this change?

Read more »

Senior housing
Stocks for Beginners

Home Improvement Stocks Are Set to Fall (When They Do, Buy These Like Crazy!)

Home improvement stocks are due to drop further in the coming months. But with solid underpinnings for the sector, it…

Read more »

An airplane on a runway
Coronavirus

Forget Boeing: Buy This Magnificent Airline Stock Instead

Boeing (NYSE:BA) stock is looking risky right now, but Air Canada (TSX:AC) stock? Much less so.

Read more »

Man considering whether to sell or buy
Stocks for Beginners

Goeasy Stock: Buy, Sell, or Hold?

When it comes to smart buys, goeasy stock (TSX:GSY) is up there as one of the smartest money can buy.…

Read more »

Woman has an idea
Stocks for Beginners

Here’s Why Magna International Is a No-Brainer Value Stock

Magna stock (TSX:MG) has been climbing back once more, but still offers huge value for long-term minded investors.

Read more »

Aircraft wing plane
Coronavirus

1 TSX Stock Down 60% That Could Bounce Back Stronger

Air Canada (TSX:AC) stock got severely beaten down in the March 2020 COVID crash. Here's why it's probably not going…

Read more »