Passive-Income Investing: How You Can Churn Out $445/Month for the Rest of 2022

Canadians crushed by inflation should look to make big passive income in 2022 with stocks like Freehold Royalties Ltd. (TSX:FRU) and others.

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 8, 2022 3:15 pm EDT

Canadians have faced a historical inflation crunch in 2022. In this environment, many investors may be hungry for passive income to shore up their bank accounts in these difficult times. Today, I want to discuss how you can generate over $445 per month for the rest of 2022. Better yet, we are going to generate that income in a Tax-Free Savings Account (TFSA). That means that passive income will be entirely tax free! Let’s jump in.

This energy stock is focused on consistently rewarding shareholders

Freehold Royalties (TSX: FRU) is a Calgary-based oil and gas royalty company that owns working interests in oil, natural gas, natural gas liquids, and potash properties in Western Canada and the United States. Shares of this dividend stock have climbed 12% in 2022 as of late-morning trading on August 8. This energy stock is up 62% in the year-over-year period.

Investors can expect to see Freehold’s next batch of earnings this week. In Q1 2022, the company delivered funds from operations (FFO) growth of 122% to $71.9 million.

This dividend stock closed at $13.49 per share on August 5. In our hypothetical, we can snatch up 2,050 shares of Freehold for a total purchase price of $27,654. The stock currently offers a monthly dividend of $0.08 per share, which represents a monster 7.1% yield. This means we can generate monthly passive income of $164 going forward.

Here’s another stock that can bolster your passive-income portfolio

Chartwell Retirement Residences (TSX: CSH.UN) is a Mississauga-based real estate investment trust (REIT) that owns and operates a complete range of seniors housing communities. This dividend stock has dropped 5.5% in the year-to-date period. Its shares have declined 11% compared to the same period in 2021.

This company is expected to unveil its second-quarter 2022 earnings on August 11. In its preliminary report, Chartwell revealed that same property retirement operations occupancy rose 0.6 percentage points to 77.0%.

Shares of Chartwell closed at $11.44 per share on August 5. For our scenario, we will look to purchase 2,300 shares of this REIT for a total purchase price of $26,312. Chartwell last paid out a monthly distribution of $0.051 per share. That represents a strong 5.3% yield. This purchase will allow us to churn out passive income of $117.30 per month going forward.

One more dividend stock that provides big passive income

Keg Royalties (TSX: KEG.UN) is the third and final dividend stock I’d look to bolster our passive income portfolio in the first half of August. This Vancouver-based income fund generates royalties through its stable of The Keg restaurants. Its shares have increased 7.4% in 2022 at the time of this writing.

This income fund closed at $15.70 per share on August 5. We can snag 1,750 shares of Keg Royalties for a purchase price of $27,475. Keg Royalties offers up a monthly dividend of $0.095 per share. That represents a huge 7.2% yield. Canadians who make this investment can now count on monthly passive income of $166.25 per month.

Bottom line

These investments will allow us to generate monthly passive income of $447.55. That is a nice chunk of change to rely on in this inflationary climate, especially considering it is tax free.