The TSX remains an incredibly volatile place. It seemed like we were going through a recovery, with inflation shrinking slightly, and stocks responding well. But that appears to have been a blip, with the TSX now down 8.7% year to date.
While it’s certainly an improvement from the lows we experienced, we’re not out of the woods yet. Which is why passive income can provide you with a cushion during these trying times. So here is how you can start creating strong passive income every single month, starting right now.
NorthWest Healthcare REIT
One of the best dividend stocks out there right now is NorthWest Healthcare Properties REIT (TSX:NWH.UN). There are a few reasons to pick up this real estate investment trust (REIT). It provides investors with access to the stable health sector, one that’s also growing after the pandemic. Further, NorthWest has a global portfolio that’s continually growing, especially in the United States.
The company continues to post strong earnings, backed by stable 14.1-year lease agreements on average. While NorthWest stock has yet to raise its dividend, it’s remained stable over the last several years it’s been trading on the market. Once it slows down its growth through acquisitions, it’s likely an increase in dividends could come soon after.
For now, it remains attractively valued trading at 7.2 times earnings, and offers a dividend yield of 6.3%. It’s down only 5% year to date, rising 60% over the last five years. This offers investors a compound annual growth rate (CAGR) of 9.9% as of writing.
A $2,000 investment in NorthWest stock would provide investors with $10.60 in monthly income.
Granite REIT
Another strong REIT to consider is Granite REIT (TSX: GRT.UN). Now Granite is more expensive, it’s true. However it also offers more historical data, showing its strong performance over the last few decades. Granite invests in industrial properties, and it too has been growing at a steady rate through acquisitions.
This is especially important given the rising demand for industrial properties. Not just for e-commerce use, but also the small business and supply-chain sectors, both of which are creating an ever-growing need for industrial properties in the country’s largest cities.
Yet Granite stock remains a deal, trading at just 4.4 times earnings and offering a dividend yield of 4.2%. Shares are down by 28% year to date, but have grown 206% in the last decade alone. This provides a CAGR of 12.3%. On top of that, the dividend stock has risen at a CAGR of 3.5% during the last five years.
A $2,000 investment in Granite stock would bring in monthly income of $7 in passive income.
Fiera Capital
Finally, Fiera Capital (TSX: FSZ) is a great investment for those looking for gains from financial institutions, and aren’t worried about short-term performance. Fiera stock does tend to fluctuate during poor market performance. But while this may be true now, during growth periods it can climb incredibly high.
And impressively, it has a long history of stellar performance to look back on. The $936-million company continues to beat out earnings estimates, and is one of the few stocks that has continued to perform above the TSX average.
As of writing, Fiera stock trades at a fairly valued 18.9 times earnings. It offers an incredible dividend of 9.5% to lock in as well. Furthermore, that dividend has grown at a CAGR of 10.4% over the last decade alone. As for shares, those have grown by 122% in that time, a CAGR of 8.3%.
If you were to invest $2,000 in Fiera stock today, you could bring in monthly passive income of $16.
Bottom line
There’s a reason I chose $2,000 per stock. That’s a reasonable amount, and is usually the contribution limit of a Tax-Free Savings Account (TFSA). Therefore, you can comfortably invest in these stocks without going overboard. Each providing you with solid passive income.
In total, by making a $6,000 investment, you could bring in $33.60 each and every month, or $403.20 per year starting right now.
