Need Cash? Create $500 in Passive Income Today With These TSX Stocks

You can beat back inflation and bring in $500 in passive income each year right now by choosing these TSX stocks.

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Are you worried about the market selloff or a recession? I don’t blame you. We could all use some extra cash right now, and passive income through TSX stocks is a great way to do that.

In fact, Motley Fool investors can make $500 each year right now by investing in the right stocks. That means creating passive income that lasts you a lifetime, and you can create even more by reinvesting each year!

All it takes is finding the right TSX stocks, which is, of course, easier said than done. This is why I’ve done the heavy lifting for you.

Sectors to consider

If you want passive income, you want income that’s going to keep coming for life. So, you don’t want some growth stock that can climb and fall, you want passive income that will keep riding high. That means choosing blue-chip companies.

These are companies that are usually a household name of their industry. They provide dividend payments, because they have decades of solid performance that create strong balance sheets. Further, they’re in solid industries that simply aren’t going anywhere.

So, what are some sectors that aren’t going away? Those would be energy, finances, and real estate. You need a place to live; you need energy to fuel your home; and you need finances to pay for it. Those are basic necessities.

There are many options.

My top stock recommendations for passive income

For these three options, my top choices right now are Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP), Royal Bank of Canada (TSX:RY)(NYSE:RY), and Choice Properties REIT (TSX:CHP.UN).

Brookfield provides entry to renewable energy over the next few decades, with a diverse set of properties around the world. Royal Bank is the largest of the Big Six banks, with over 100 years of solid performance and high revenue thanks to its wealth and commercial management sector. And as for Choice Properties, you get exposure to not just residences, but the retail businesses it holds below its apartments in urban centres.

Brookfield, Royal Bank, and Choice have all been paying out dividends for years. They offer passive income of 3.65%, 4.02%, and 5.37% respectively. So, you can easily create passive income of $500 from these TSX stocks.

Do the math

Let’s say you were to create a third of your $500 from each of these TSX stocks. That would mean about $167 each. To get there, it would take an investment of $4,554 in Brookfield, $4,175 in Royal Bank and $9,310 in Choice. That’s a total of $18,039, which means it can all be fit in your Tax-Free Savings Account!

So, now Motley Fool investors, you’ve created passive income of $500 each year, tax free, for life. Further, you’ve chosen strong, stable companies that will continue to produce returns and dividends for decades to come — all while buying these TSX stocks at an unbelievably low price during this market downturn.

Don’t let the market fool you. Downturns come and go, but the TSX trends upwards over time. So, don’t miss out on this incredible buying opportunity to create passive income for life.

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 and ROYAL BANK OF CANADA. The Motley Fool has no position in any of the stocks mentioned.

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