Passive-Income Investing: How to Earn Over $125/Week Tax-Free in 2022

Canadians hungry for passive income can generate over $125/week in their TFSA with stocks like Slate Office REIT (TSX:SOT.UN).

Ambrose O'Callaghan

Ambrose O'Callaghan graduated with a BA in Political Science from McMaster University. After that, he jumped into the banking world. He worked from the front line to an investment associate role. After that, he found a way to marry his experience and knowledge in the world of banking and finance to his love and passion for writing. Ambrose is a passionate believer in Warren Buffett's value investing model.

Published December 23, 2021 5:00 pm EST

The annual contribution room for the Tax-Free Savings Account (TFSA) will stand at $6,000 again in 2022. That brings the cumulative TFSA total to $81,500. That is a great pool for passive-income investors to work with. Today, I want to discuss how investors can earn over $125/week in their TFSAs in 2022. We’re going to be working with the full $81,500 contribution room in our hypothetical. Let’s jump in.

Passive-income investors should target this monster housing stock

Bridgemarq Real Estate (TSX: BRE) is a Toronto-based company that provides various services to residential real estate brokers and REALTORS in Canada. Last month, I’d discussed why investors should have faith in the Canada housing market to continue its run in 2022. Shares of Bridgemarq have climbed 11% in 2021 at the time of this writing.

This dividend stock closed at $16.48 per share on December 22. In our hypothetical, we’ll snag 1,650 shares of Bridgemarq with a purchase price of $27,192. Moreover, the stock offers a monthly dividend of $0.113 per share. That represents a hefty 8.1% yield. This should make passive-income investors smile.

Those 1,650 shares of Bridgemarq will allow TFSA investors to gobble up $186.43 per month in dividend income. That works out to a weekly dividend payout of $43 per week over the course of the year.

Here’s a REIT that offers big income right now

Slate Office REIT (TSX:SOT.UN) is a real estate investment trust (REIT) that owns and operates North American office real estate. REITs are traditionally a strong target for investors hungry for passive income. This REIT has increased 18% in the year-to-date period. However, its shares have slipped 8.5% over the past six months. The REIT has weathered challenging conditions to come back strong in 2021.

This REIT closed at $4.91 per share as of close on December 22. We can buy 5,500 shares of Slate Office that would be valued at $27,005 at the time of this writing. It last paid out a monthly dividend of $0.033 per share. That represents a monster 8.1% yield.

In our hypothetical, those 5,500 shares will net a monthly dividend payout of $181.50. That works out to a weekly average of $41.88.

One more income fund perfect for a passive-income-focused portfolio

Keg Royalties Income Fund (TSX: KEG.UN) is the third income-yielding equity I’d look to snatch up in this scenario. This Vancouver-based income fund offers income through royalties generated at Keg restaurants. Shares of this stock have increased 18% in the year-to-date period. Its shares have plunged 8.1% month over month.

The royalty fund closed at $14.38 per share on December 22. This allows us to snatch up 1,880 shares of Keg Royalties at a purchase price of $27,034. The stock offers a monthly distribution of $0.095 per share, representing a very attractive 7.8% yield.

Passive-income investors would gobble up monthly dividend income of $178.60 per share. The weekly payout works out to $41.21 over the course of the year.