3 TSX Stocks to Create $345 in Monthly Passive Income

These inflation-fighting TSX stocks are the perfect option for long-term passive income of $345 per month.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published June 13, 2022 5:45 pm EDT

The TSX today is filled with options for those seeking valuable passive-income stocks. In fact, there are TSX stocks that have high dividend yields but now trade in value territory. These are perfect for fighting inflation — especially if you can find companies that will rebound quickly.

Today, I’m going to focus on three TSX stocks that should do just that, providing you with $345 in monthly passive income.

NorthWest REIT

First up, I’d consider NorthWest Properties REIT (TSX:NWH.UN) one of the best TSX stocks to consider for passive income. It dishes out a dividend each month, which currently sits at 6.31%. I’ll be honest, that dividend hasn’t moved since coming on the market. But this means the company has created a stable dividend that also isn’t moving downwards.

NorthWest stock is one of the TSX stocks seeing a drop thanks to inflation and interest rates hurting the TSX today. However, long term, it’s a perfect option. The company invests in healthcare real estate around the world. This gives you a diversified range of essential properties in every corner of the globe.

Shares trade at 6.26 times earnings and are down 10% year to date and up 14% in the last two years.

Northland Power

Another strong long-term option among TSX stocks is Northland Power (TSX: NPI). The company is similar to NorthWest in that it has a diversified range of assets around the world. However, it focuses on creating clean energy through its assets.

This is the perfect option for those seeking long-term passive income. Investors can lock in a dividend yield of 3.02%, and see shares continue to rise as the world shifts over to renewable energy production. Similar to NorthWest as well, the company doesn’t move its dividend much, growing slightly in the last five years. However, it’s remained stable, even during market instability.

Shares trade at 28.44 times earnings and are up 2% year to date and 22% in the last two years.

ZWB ETF

Finally, the Big Six banks are the best options for those wanting to see their TSX stocks recover as quickly as possible. The problem is, the banks all deliver dividends quarterly. If you want in on bank performance but with a monthly dividend, I’d choose BMO Covered Call Canadian Banks ETF (TSX: ZWB).

This ETF aims to replicate and exceed the performance of the Big Six banks, helped through covered calls. It delivers a monthly dividend of 5.31% as of writing. That dividend actually has seen relatively regular growth, rising at a compound annual growth rate of 2.61% over the last decade.

Yet again, shares are down about 10% year to date and 30% in the last two years.

Bottom line

To create $345 per month in passive income from these TSX stocks, that comes to $4,140 per year. Divided equally, it would mean creating $1,380 from each stock. That would come to an investment of $21,511 in NorthWest, $44,540 in Northland Power, and $22,621 in ZWB. That’s a total investment of $88,672 to create that monthly income.