TFSA: Invest $30,000 in These 3 Stocks and Get $1,881 in Passive Income

If you are looking to get an income boost for your TFSA, these three stocks could earn over $1,881 with just $10,000 invested in each.

Image source: Getty Images.

It is never too late to start earning passive income by investing in stocks. The great thing with investing right now is that Canadian dividend stocks are depressed and they pay very attractive dividend yields. If you invest through your Tax-Free Savings Account (TFSA), all that passive dividend income is tax free.

The combination of dividend income and capital gains is one reason why stocks tend to outperform over long periods of time. When you invest in your TFSA, you keep all gains and income, so it’s a great way to maximize long-term returns.

If you’ve got $30,000 to invest today, here are three stocks that could earn $1,881 of annual passive income now and the potential for upside in the years ahead.

Enbridge: A legend for high passive income

If you invested $10,000 into Enbridge (TSX:ENB) stock, you would be able to buy 188 shares at a price of $53.20. Today, this passive-income stock yields a 6.56% dividend. That would earn around $164 in quarterly passive income, or $656 annually.

Enbridge is not a fast-growing business by any means. With a market cap of $107.5 billion, you are going to be hard-pressed to quickly double your money. However, the company has a diversified energy infrastructure platform that earns stable and reliable income. Pipelines and energy infrastructure are harder to build these days, so the scarcity value of its assets should continue to appreciate.

Given its foreseeable capital plan, investors will likely enjoy 5-7% distributable earnings-per-share growth for the coming few years. Dividends are likely to rise at a similar rate. Given its already large dividend, that isn’t a bad total expected return.

BCE: A solid blue chip

With $10,000, you could buy 160 shares of BCE (TSX:BCE) for today’s price of $61.90. Given that this passive-income stock is yielding 5.95% today, you could earn $148.75 of tax-free quarterly income or $595 a year.

With a market cap of $56.4 billion, it is Canada’s largest telecommunications company. Like Enbridge, it is big, but growth is limited. However, it provides essential communication and data services. Its earnings are predictable, and the overall business has relatively low risk.

BCE is finishing a large-scale development plan to complete its fibre optic and 5G network. Once completed, it is expected to earn significant amounts of excess cash. That means patient shareholders should get a nice growing stream of passive income from rising dividends.

Dream Industrial REIT: Monthly passive income

$10,000 would buy you 900 units in Dream Industrial Real Estate Investment Trust (TSX:DIR.UN) at $11.11 per unit. With its 6.3% dividend yield, investors earn $52.50 a month, or $630 a year.

Dream Industrial REIT only has a market cap of $2.8 billion, but it is one of the largest industrial real estate stocks in Canada. While its stock is down 35.5% this year, it has been growing its cash flow per unit by a high single-digit rate.

Its well-located properties have been garnering strong rental growth and high occupancy. While rising interest rates are a headwind, high inflation supports rental rate growth as on offset. Dream is one of the cheapest industrial REITs you will find in North America. If you just want a high stream of tax-free, monthly passive income, this is a solid stock to hold.

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 Robin Brown has positions in DREAM INDUSTRIAL REIT. The Motley Fool recommends DREAM INDUSTRIAL REIT and Enbridge. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »