So, you need some cash. Don’t we all? But you’ve decided to at least put that cash to work by seeking out passive income through investments. It’s a great idea, though right now, it may not feel like one.
TSX is down but not out
The TSX today continues to trade down 8% year to date. It may not seem like it, but that alone is an improvement. In the last month alone shares have climbed back up by 7% as of writing. So, we could indeed see a recovery coming soon.
But even if it doesn’t, look at the bigger picture here. The TSX may be down in 2022, but in the last decade, it has climbed 60%. In the last two decades, it’s climbed by 205%. The market moves upwards, no matter what goes on. It just takes some time.
With that in mind, now is an excellent time to lock in high dividends and at a great rate for future growth.
Seek out essentials
The key to investing during a downturn is finding companies that will remain essential, no matter what is going on. And one of those essential things we always need is food. Even if we cut back on groceries, we still need groceries. You can’t just simply cancel eating like you would a streaming service.
Therefore, food companies are a great place to look for strong investments. But if you’re looking for monthly passive income, that list does indeed get a bit shorter — especially if you want passive income that’s going to last decades.
That is why I’ve done the heavy lifting and identified the best of the bunch as Slate Grocery REIT (TSX:SGR.UN).
Great value; Great dividend
This monthly TSX stock is a great choice right now in practically every respect. The company continues to perform well, acquiring more grocery chains across the United States. Its occupancy remains stable at 93% as well. And finally, shares are actually up by 11.5% year to date.
Though it still offers value! Shares of Slate stock trade at just 5.63 times earnings as of writing. And even with shares up, you can lock in a substantial 7.63% dividend yield as well. Then you’ll want to zoom out to again look at that bigger picture.
The TSX stock has done well over the years and is currently up by 82% in the last five years alone. That offers a compound annual growth rate (CAGR) of 12.7%. During that time, the dividend has grown by a steady 1.95% CAGR as well. All this speaks to a stable stock with stable payments.
Bottom line
If you want to make $100 per month, that would take $1,200 in passive income each year. To reach that, you would need about 1,017 shares as of writing. That’s a total investment of about $15,255 at this moment. And you can then look forward to that steady income coming in long after any recession fears are behind you.
