Canadians: How to Churn Out $100/Week TAX FREE in Passive Income for the Rest of 2022

Canadians can seek to churn out monthly passive income of $100/week with stocks like Sienna Senior Living Inc. (TSX:SIA) for the rest of 2022.

Ambrose O'Callaghan

Ambrose O'Callaghan graduated with a BA in Political Science from McMaster University. After that, he jumped into the banking world. He worked from the front line to an investment associate role. After that, he found a way to marry his experience and knowledge in the world of banking and finance to his love and passion for writing. Ambrose is a passionate believer in Warren Buffett's value investing model.

Published August 6, 2022 1:30 pm EDT

Canadian investors looking to generate passive income may want to target some of the top monthly dividend stocks on the TSX. Markets are still shaky to start the last full month of the summer as the threat of a recession has grown. Today, I want to discuss how you can generate $100/week in tax-free, passive income starting this month. In this hypothetical, we will be utilizing all available room in our Tax-Free Savings Account (TFSA). Let’s jump in.

This undervalued dividend stock is perfect for a passive-income portfolio

Superior Plus (TSX: SPB) is the first dividend stock I’d look to build our passive-income portfolio today. This Toronto-based company is engaged in the energy distribution business. Its shares have dropped 14% in 2022 as of mid-morning trading on August 5. Meanwhile, the stock is down 28% from the previous year.

Investors can expect to see this company’s next batch of results on August 9. In Q1 2022, it delivered adjusted EBITDA of $250 million — up 18% from the first quarter of 2021.

This stock closed at $11.32 per share on August 4. In our hypothetical, we can snatch up 2,400 shares of Superior Plus for a total purchase price of $27,168. It offers a monthly dividend of $0.06 per share, representing a 6.3% yield. Shares of Superior Plus currently possess a favourable price-to-earnings (P/E) ratio of 8.9. This means we can generate monthly passive income of $33.23 going forward.

Bolster your monthly paycheque with this dividend stock

First National (TSX: FN) is another Toronto-based company that originates, underwrites, and services commercial and residential mortgages in Canada. Shares of this dividend stock have declined 11% in the year-to-date period. The stock is down 18% from the previous year.

The company unveiled its second-quarter 2022 earnings on July 26. It announced mortgages under administration (MUA) hit a record $127 billion — up 5% from the previous year. Meanwhile, revenues jumped 14% to $416 million.

This dividend stock closed at $38.05 per share on August 4. We can purchase 700 shares of First National in our TFSA for a grand total of $26,635. The stock offers a monthly distribution of $0.196 per share. That represents a tasty 6.1% yield. This move means we can now generate passive income of $31.66 per month.

One more stock to round out your passive-income path

Sienna Senior Living (TSX: SIA) is the third and final dividend stock I’d target to complete our passive-income portfolio in early August. Shares of Sienna are down 9.5% so far in 2022. The stock has dropped 11% in the year-over-year period.

Investors can expect to see its second-quarter 2022 earnings on August 11. In Q1 2022, the company posted revenue growth of 8.1% to $174 million. This stock closed at $13.68 per share on August 4. We can buy 2,000 shares of Sienna for a total purchase price of $27,360. It offers a monthly dividend of $0.078 per share, which represents a 6.8% yield. That means we can churn out monthly passive income of $36.