Earn $20/Day in Passive Income With These 2 Stocks

Earning $20 per day in passive income is possible. Invest your idle savings in Chemtrade Logistics stock and Bridgemarq stock. Both are dividend-paying companies offering ultra-high yields for income investors.

| More on:
A close up image of Canadian $20 Dollar bills

Image source: Getty Images

Canadians can boost their disposable income or create extra financial cushion during the pandemic. Use your free cash or idle money to invest in dividend-paying companies. The yields vary, but some pay ultra-high dividends.

Two names, Chemtrade Logistics (TSX:CHE.UN) and Bridgemarq Real Estate Services (TSX:BRE), appeal to income investors because the yields are 8% or more. Earning $20 per day in passive income is possible if you can accumulate the right number of shares. Likewise, any amount you invest will likely double in nine years.

Specialty chemicals niche

Chemtrade engages in the distribution of high-quality industrial chemical products in North America and select markets globally. It caters to dozens of industries in needing sulphur products and performance chemicals, water solutions and specialty chemicals, and electrochemical products.

This $656.41 million company has been through a step-growth change since starting operations in 2001. The portfolio is diversified, although it dominates the specialty chemicals industry. Agriculture, oil & gas, pharmaceuticals, and water treatment are some of the demanding sectors Chemtrade serves.

Chemtrade continues to experience significant headwinds in the first half of 2021. Still, its president and CEO Scott Rook said the business generally performed well in Q2 2021, despite the $14 net loss. In the six months ended June 30, 2021, net income lessened 63% to $34.5 million compared to the $93.4 million in the same period in 2020.

For the rest of 2021, management expects Chemtrade’s adjusted EBITDA to range between $245.0 million and $260.0 million — nearly the same as the figure in 2020. So far, in 2021, the industrial stock is up 13.19%. At $6.28 per share, the company pays a fantastic 8.68%.

Revenue stability

Bridgemarq is well known in the real estate industry through brands Royale LePage, Johnston & Daniel, and Via Capitale. The $160.27 million company purchases long-term royalty contracts and builds a network of realtors (currently 19,316) across Canada. About 78% of revenues come from franchise fees.

Since the fees are mostly fixed and underpinned by long-term franchising agreements (287 in 2021), there’s revenue stability and insulation from market fluctuations. However, Bridgemarq reported a $2.5 million net loss in Q1 2021 compared to the $20.12 million net income in Q1 2020.

The threat to the business is the potential increase in interest rates. Economists say Canadians with large mortgages face financial risk if the Bank of Canada raises rates soon. In 2020, Bridgemarq rewarded investors with a total return of 12% on top of the high dividends.

Current investors enjoy a 19.79% year-to-date gain. Bridgemarq trades at $16.90 per share, while the dividend yield is 8%. The price is also 7.1% shy of its 52-week high of $18. Phil Soper, Bridgemarq’s president and CEO, noted that in Q2 2021, overall demand in the housing market was moderate from record highs. While property values continue to climb, the pace of appreciation was likewise moderate.

Management expects the housing market activity to remain strong in the coming months due to the influx of immigrants. The federal government would accept more than 1.2 million from 2021 to 2023.

Think of your finances

Canadians can receive dividends constantly from Chemtrade and Bridgemarq. Assuming the yields remain constant, accumulate $90,000 worth of shares over time to earn $20 per day. Your capital should also grow to $180,000 in nine years if you keep reinvesting the dividends.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

Gas pipelines
Dividend Stocks

3 Stocks for High-Yield Income Each Month

Are you seeking passive income? Consider investing in these high-yield TSX dividend stocks now.

Read more »

edit Colleagues chat over ketchup chips
Dividend Stocks

2 Dividend Stocks for Beginner Investors in March 2023

Are you a new investor looking for great dividend stocks to buy? Here are two top picks!

Read more »

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Dividend Stocks

Need $500 in Passive Income Each Month? These 2 TSX Stocks Are Your Top Bets

You can create a robust monthly dividend income portfolio around SmartCentres REIT, and another top passive income play today.

Read more »

A worker gives a business presentation.
Dividend Stocks

2 TSX Dividend Stocks to Buy Today and Hold for the Next 5 Years

These TSX industry leaders look cheap today and pay attractive dividends that should continue to grow.

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

3 Dividend Stocks to Buy Before the End of March

These dividend stocks all have earnings coming up that could see share prices rise higher, so get in on a…

Read more »

grow dividends
Dividend Stocks

5 Canadian Dividend Stocks With Yields of 5% or More

Here are five of the best dividend stocks Canadian investors can buy to boost their passive income in the current…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Looking for $200/Month in Alternative Income? Buy 2,000 Shares of This Stock

Here’s a renewable energy-focused monthly dividend stock you can buy now to create a reliable source of alternative income in…

Read more »

Dividend Stocks

Why I Continue Buying Shares of This Magnificent Dividend Stock Hand Over Fist

This glorious dividend stock is a buy in all market situations. It not only gives you market returns but also…

Read more »