Passive-Income Power: How to Earn Over $17/Day Tax Free in 2022

Dividend stocks like Chemtrade Logistics Income Fund (TSX:CHE.UN) can play a big role in your passive-income portfolio.

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Last week, I’d looked at how Canadians could look to generate weekly income with a passive-income strategy. Today, I want to look at three more income-generating assets that can help investors churn out over $17 a day. Better yet, if you hold these vehicles in your Tax-Free Savings Account (TFSA) you can produce that income tax free. In our hypothetical, we’ll use the $81,500 in cumulative TFSA room that is now available in 2022. Let’s jump in.

This REIT with a monster dividend is perfect for a passive-income portfolio

True North REIT (TSX:TNT.UN) is the first real estate investment trust (REIT) I want to zero in on today. It operates a portfolio of commercial properties in urban areas across Canada. REITs are an excellent source of passive income. Shares of True North have climbed 15% in the year-over-year period as of close on January 17.

The REIT closed at $7.35 on that same day. In our hypothetical, we can add 3,700 shares of True North REIT, which works out to a purchase price of $27,195. This REIT offers a monthly dividend of $0.05 per share. That represents an 8% yield at the time of this writing.

With this investment, we can generate $185 in monthly income in our TFSA. That works out to $6/day tax-free over the course of the year. This is a solid start for our passive-income portfolio.

Here’s an income fund that you can rely on in your TFSA

Chemtrade Logistics (TSX:CHE.UN) is a Toronto-based income fund that offers industrial chemicals and services in Canada, the United States, and South America. Its shares have increased 11% from the previous year.

In Q3 2021, the company saw cash flows from operating activities drop $10.4 million year over year to $81.4 million. However, distributable cash per unit was still up from 2020. Passive-income investors should be encouraged by its solid cash position.

The stock closed at $7.70 on January 17. For our hypothetical, we’ll snatch up 3,525 shares of Chemtrade. That adds up to a purchase price of $27,142.50. Chemtrade also offers a monthly dividend of $0.05 per share. This represents a 7.7% yield. The shares we purchased allows us to generate $176.25 in monthly dividend income. Moreover, that works out to $5.79/day in tax-free passive income going forward.

One more REIT that can power your passive income

Slate Office REIT (TSX:SOT.UN) is another REIT that is worth targeting for passive-income investors. This Toronto-based REIT offers exposure to North American office real estate. The REIT has climbed 18% in the year-over-year period.

This REIT closed at $5.12 on January 17. For our last purchase, we’ll snatch up 5,300 shares of Slate Office for a purchase price of $27,136. Meanwhile, it last paid out a monthly distribution of $0.033 per share. That represents a monster 7.8% yield.

The shares we picked up will allow us to generate $174.90 in monthly income in our TFSA. That works out to $5.75 per day in tax-free income.

Bottom line

These investments will allow passive-income investors to churn out a total of $17.54 in daily tax-free income. Moreover, that works out to over $6,400 in annual income.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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