This past week, I’d discussed how investors could look to construct a passive-income portfolio going forward. It is a luxury for investors to be able to rely on consistent income without having to get up off the couch. This is even better when you can generate that income in a Tax-Free Savings Account (TFSA). Today, I want to discuss how investors can look to churn out $14/day tax-free in the year ahead. Let’s dive in.
This REIT offers a monster dividend for passive-income investors
Real estate investment trusts (REITs) are a great source of passive income for investors. Inovalis REIT (TSX: INO.UN) is an open-ended REIT that his primarily invested in office properties. Shares of this REIT have increased 1.5% in 2022 as of early afternoon trading on February 8. It is up 5.7% year over year. In the year-to-date period ending Q3 2021, this REIT delivered operating earnings of $48 million — up from $12 million in the first nine months of 2020.
Inovalis REIT closed at $9.96 per share on February 7. In our hypothetical, we’ll use all the cumulative TFSA room available — $81,500. We will purchase 2,800 shares of Inovalis REIT for a purchase price of $27,888. Inovalis offers a monthly dividend of $0.069 per share. That represents a monster 8.2% yield.
This investment will allow you to generate monthly income of $193.20 in your TFSA. That works out to $6.35 per day.
Here’s an energy stock that can help you gorge on dividends
Energy stocks have been a great bet for Canadian investors over the past year. Oil and gas prices have continued to build momentum in the opening weeks of 2022. Keyera (TSX: KEY) is a Calgary-based company that is engaged in the energy infrastructure business. Investors on the hunt for passive income should consider this energy stock today.
This energy stock closed at $30.04 per share on February 7. In this scenario, we’ll snatch up 890 shares of Keyera for a purchase price of $26,735.60. Keyera last paid out a monthly dividend of $0.16 per share. That represents a tasty 6.3% yield. These holdings will allow us to churn out monthly income of $142.40 in our TFSA. That works out to $4.68 per day.
One more stock that can help build your passive-income empire
Freehold Royalties (TSX: FRU) is a Calgary-based oil and gas royalty company. It aims to produce consistent income for its shareholders by generating positive cash flow. This energy stock has increased 9.4% in 2022. The stock has soared 113% from the prior year.
This energy stock closed at $13.67 per share on February 7. For our final move, we’ll buy up 1,960 shares of Freehold for a purchase price of $26,793.20. Freehold currently offers a monthly dividend of $0.06 per share, which represents a strong 5.2% yield. That means we can generate monthly income of $117.60, or $3.86 per day.
Conclusion
These holdings will allow us to generate passive income of $14.89/day in our TFSA in 2022 and beyond. That is a very solid starting point for your income-oriented portfolio.
