The COVID-19 pandemic inspired many Canadians to accelerate their retirement plans. Retirees were treated to a renewed bull market following an early dip in 2020. However, the environment for savers has worsened considerably in 2022. Inflation has climbed to a 40-year high, which has made it difficult to keep up inflation, even with some of the highest-yield dividend stocks.
Today, I want to discuss how retirees can look to generate more than $95 a week in passive income. Better yet, retirees who stash these stocks in a Tax-Free Savings Account (TFSA) can count on tax-free passive income.
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Retirees should target this long-term-care stock for its dividend yield
Sienna Senior Living (TSX: SIA) is a Markham-based company that provides senior living and long-term-care (LTC) services in Canada. Shares of this dividend stock have dropped 9.6% in 2022 as of late-morning trading on August 11. The stock is down 12% from the previous year.
This stock closed at $13.74 on August 10. In our hypothetical, retirees can look to snatch up 1,600 shares of Sienna for a purchase price of $21,984. The stock last paid out a monthly dividend of $0.078 per share. That represents a very tasty 6.8% yield. This investment will allow us to generate weekly passive income of $28.80 in our retirement portfolio.
This REIT can seriously bolster your passive-income portfolio
Real estate investment trusts (REITs) have been a great source of income for Canadians over the past decade. Slate Grocery REIT (TSX: SGR.UN) offers exposure to grocery retailers in the United States. This has been a worthy target with food prices surging in North America in recent months. Shares of this REIT have climbed 2.4% so far this year.
This REIT closed at $14.94 on August 10. Retirees can snag 1,300 shares of Slate Grocery for a purchase price of $19,422. The REIT offers a monthly distribution of $0.072 per share. This means retirees can now churn out monthly passive income of $21.60 per share.
Here’s another dividend stock perfect for a retiree
Canadian energy stocks enjoyed a big upswing in the first half of 2022. Oil and gas prices started strong and erupted after Russia’s invasion of Ukraine on February 24, 2022. Keyera (TSX: KEY) is a Calgary-based energy infrastructure company. This stock has increased 12% so far in 2022.
Keyera closed at $31.98 per share on August 10. We can snatch up 600 shares of Keyera for a total price of $19,188. This stock currently offers a monthly dividend of $0.16 per share. That represents a strong 6% yield. Retirees can now count on monthly passive income of $22.15 from this investment.
One more stock that can deliver big passive income in the final months of 2022
Extendicare (TSX: EXE) is the fourth dividend stock retirees can target to shore up their passive-income portfolio. This Markham-based company provides care and services for seniors in Canada. Its shares have climbed marginally in the year-to-date period.
This stock closed at $7.46 per share on August 10. For our final purchase, we can buy 2,800 shares of Extendicare for a total of $20,888. Extendicare offers a monthly distribution of $0.04 per share, which represents a tasty 6.4% yield. We can now churn out weekly passive income of $25.84 in our TFSA.
Bottom line
These investments will allow retirees to generate monthly passive income of $98.39 per week in their TFSA going forward. That is a solid rate in this inflationary climate.
