Passive-Income Power: How to Churn Out Over $120/Week for the Rest of 2022

Canadians hungry for passive income in this turbulent market should target dividend stocks like Extendicare Inc. (TSX:EXE).

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The S&P/TSX Composite Index plunged 323 points on Tuesday, August 30. Every segment on the TSX finished the trading session in the red. The worst-performing sectors included battery metals, base metals, energy, and health care. Canadian investors may want to consider pursuing a passive-income strategy in this choppy market.

Today, I want to discuss how you can look to generate triple-digit weekly passive income for the rest of 2022. In this scenario, we are going to utilize all our Tax-Free Savings Account (TFSA) room and round it out to $100,000 in total with $19,500 in a cash account. Let’s dive in.

This dividend stock is undervalued and can provide big passive income

Extendicare (TSX:EXE) is a Markham-based company that provides care and services for seniors across Canada. Shares of this healthcare stock have dropped 2.9% in 2022 as of close on August 30. The stock has declined 11% in the year-over-year period.

This company released its third-quarter fiscal 2022 results on August 9. It delivered revenue growth of 5.3% to $296 million. Meanwhile, net operating income (NOI) jumped $1.4 million year over year to $30.3 million.

The stock closed at $7.20 per share on August 30. In our hypothetical, we can snag 5,660 shares of Extendicare for a purchase price of $40,752 in our TFSA. It offers a monthly dividend of $0.04 per share, which represents a tasty 6.6% yield. This will allow us to churn out weekly tax-free passive income of $52.24.

Here’s a REIT you should look to target as we look to September

Northwest Healthcare REIT (TSX:NWH.UN) is a Toronto-based real state investment trust (REIT) that owns and operates a global portfolio of high-quality healthcare real estate. Shares of this REIT have dropped 7.7% in 2022 as of close on August 30. The stock is down 4.7% year over year.

In the second quarter 2022, Northwest Healthcare reported total revenue of $111 million — up 24% from the previous year. The REIT reported same-property net operating income (NOI) growth of 3.6% and strong portfolio occupancy of 97%. Moreover, net asset value (NAV) per unit jumped 8% to $14.19.

This REIT closed at $12.62 on August 30. That means we can buy 3,227 shares for a purchase price of $40,724. Northwest Healthcare offers a monthly distribution of $0.067 per share, which represents a 6.3% yield. This purchase will allow us to churn out passive income of $49.89 in our TFSA.

Investors building a passive-income portfolio should also target this energy stock

Pembina Pipelines (TSX:PPL)(NYSE:PBA) is the third dividend stock I’d target to round out our passive-income portfolio today. This Calgary-based company provides transportation and midstream services for the energy industry. Shares of this energy stock have increased 22% in the year-to-date period.

This stock closed at $47.16 per share on August. We can snag 413 shares of Pembina in our cash account. That comes to a purchase price of $19,477. The stock last paid out a monthly dividend of $0.21 per share, representing a strong 5.3% yield. This purchase will allow us to churn out weekly passive income of $20.01.

Bottom line

These investments will allow you to generate tax-free passive income of $102.13 and passive income of $20.01 in the cash account. That works out to a total just above $120 per week.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS and PEMBINA PIPELINE CORPORATION.

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