How to Make $373/Month in Passive Income With These 2 TSX Stocks

You could bring in passive income of $4,482 annually, or $373 per month!

| More on:
money cash dividends

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The TSX today remains one filled with volatility. Even after a market correction of 10.8% hit between March 29 and mid-May, shares still fluctuate up and down. But now is a great time to buy passive-income stocks on the cheap to create stable cash flow.

In fact, many of these companies continue to pay out high dividends thanks to long-term contracts. So, let’s look at two passive-income stocks to consider right now on the TSX today.

Brookfield Renewable

Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) has consistently paid out dividends to its investors for the last several years. In fact, it’s increased its dividend for the last 13 consecutive years. In the meantime, it’s paid out that dividend on a regular basis for about 20 years since coming on the market.

The company has a diverse set of revenue streams within the clean energy sector — a sector that will likely be booming over the next decade. It has long-term contracts signed on and is looking for even more all the time thanks to its cash on hand.

This helps Brookfield support dividend payments and increases and could lead to substantial ones in the near future. Yet right now, it’s going through a pullback because of the inflation and supply-chain demand issues that continue to put pressure on the industry.

Still, right now, you can pick up the company with a 3.52% dividend yield — a dividend that’s increased at a compound annual growth rate (CAGR) of 7.76%.

Slate Grocery REIT

Real estate investment trusts (REIT) are strong investments for passive income for a number of reasons, but the biggest one is stability. If you find the right REIT, you can look forward to decades of passive income thanks to lease agreements coupled with rental collection.

A prime target is Slate Grocery REIT (TSX:SGR.U). The grocery-anchored company operates primarily in the United States. This means it’s tied to essential services that continued to bring in income, even during the height of pandemic restrictions.

Now that those restrictions have eased off, the company is bringing in even more revenue. Furthermore, lower interest rates meant the company saw a renewal of lease agreements. Total occupancy remained stable at 93.2% during the last quarter, with 97% of its properties protected by long-term lease agreements. That offers protection during this inflationary market.

Right now, you can pick up the passive-income stock with an incredible 7.58% dividend yield. That dividend has risen by a CAGR of 0.67% over the last five years coming out on a monthly basis.

Bottom line

Both Brookfield and Slate offer solid long-term income as passive-income stocks. Furthermore, they have solid cash flow that can see Canadians bring in cash for decades, as they’re attached to agreements lasting over a decade in many cases.

If you were to use your Tax-Free Savings Account to put half of the $81,500 contribution room towards each stock, you could bring in passive income of $4,482 annually, or $373 per month!

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 Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

potted green plant grows up in arrow shape
Stocks for Beginners

1 Canadian Growth Stock That Could Double Your Money in an Economic Recovery

The market downturn is an opportunity to lock growth during the economic recovery. This stock is a blend of value,…

Read more »

Bank sign on traditional europe building facade
Investing

RRSP Investors: Here’s the Best Canadian Bank Stock for Your Buck

Bank of Montreal (TSX:BMO)(NYSE:BMO) stock is getting far too cheap to ignore after the latest spill in the big Canadian…

Read more »

analyze data
Dividend Stocks

2 Safe Dividend Stocks That Could Help You Fight Inflation

A dependable stream of passive income is one way to help offset rising inflation rates. Here are two top dividend…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

Stay Invested in a Recession: Increase Positions in 2 Value Stocks

The suggestion of market analysts is to increase positions in two value stocks if you want to stay invested amid…

Read more »

Diagonal chain made of zeros and ones. Cryptocurrency and mining.
Cryptocurrency

Is This the End for Crypto?

Bitcoin (CRYPTO:ETH) is in the midst of its worst crash in years. Is this the end?

Read more »

Business success with growing, rising charts and businessman in background
Investing

4 Growth Stocks That Could Make You RICH by 2030

Canadians should take advantage of discounted growth stocks like goeasy Ltd. (TSX:GSY) and others in this summer bear market.

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

3 Dividend Stocks to Buy as Inflation Surges in Canada

If you're worried about how surging inflation may impact your portfolio, here are three of the best dividend stocks to…

Read more »

You Should Know This
Dividend Stocks

High Inflation: The Good and the Bad for Canadians

Consider tucking away some of your long-term savings in quality dividend stocks like Brookfield Infrastructure in this correction.

Read more »