Canadians today make an average salary of about $28 per hour. Now, to make that much through investments, you would need to create a return of $58,240 per year. Obviously, that is far more than your Tax-Free Savings Account (TFSA) could handle and likely a lot more than most Canadians can afford.
But there is a way to bring in $28 per day in passive income. That would mean a combination of returns and dividends worth about $10,220 in the next year. While that’s still quite a lot, it’s doable. Simply start with a TFSA and work towards a great investment.
If there’s one industry that can get you towards this goal right now, it’s the healthcare industry. While others might recommend e-commerce, and indeed I have in the past, healthcare is a completely stable option that will continue to rise well beyond the pandemic. Yet right now, there is a surge in investment due to COVID-19. This surge means you can find passive-income producers still at a great price but that have grown substantially this year alone.
The healthcare industry has been receiving investment from governments around the world. While you could invest in companies that provide healthcare products, it’s likely you won’t receive passive income. That’s because the company will likely take those dividends and put them towards creating new and better products.
Instead, it would be a great investment to consider healthcare properties. These properties will be around for years, if not decades, and can be a wide variety. There are hospitals, of course, but also clinics, office space, even health institutions. So, if you’re going to find a healthcare stock to invest in, real estate properties would be a great bet.
This makes Northwest Healthcare Properties REIT (TSX:NWH.UN) a perfect choice. The company has properties around the world in every area of healthcare. What’s great is that these properties sign on to multi-year and even decade-long leases. So, that means revenue is strong and stable as it continues to grow.
And revenue has been growing. During the last few quarters it jumped to 10.8% increase year over year in revenue, with occupancy reaching a whopping 99%! Shares have grown an incredible 108% for this year alone. Meanwhile, the dividend yield has grown by a compound annual growth rate of 46% in the last five years!
So, here’s how this breaks down. If you were able to invest $60,000 of your TFSA contribution room of $69,500, that could double again in the next year! Your returns could be $64,800 as of writing by next year for a total investment of $124,800. Meanwhile, you would receive dividends of $4,000 per year. That would be a total of $68,800 in returns! Daily, that would be $188 per day next year! And for just dividends, that’s still $11 every day for the rest of your life.
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Fool contributor Amy Legate-Wolfe owns shares of NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.