TFSA Investors: Invest $35,000 for $1,808 in Income Every Year

Are you ready for value, passive income, and a huge deal? These dividend stocks are perfect for TFSA investors seeking more income than ever before.

| More on:
TFSA and coins

Image source: Getty Images

It’s a great time for Tax-Free Savings Account (TFSA) investors. No, really! While the market continues to perform on the not-so-great side, it’s still excellent if you’re seeking out passive-income stocks. In fact, it couldn’t be better!

Right now, you can lock in rates that we haven’t seen in years, in some cases. You can then put that cash away for decades of income. Or, if you need the cash right away, you can use that passive income to help your bottom line.

If you have some cash in your TFSA that you’re wanting to invest, or if you’re simply wanting to rethink your original investments, these are the top stocks I’d invest in with $35,000 today.

100 years and going strong

Canadian Tire (TSX:CTC.A) recently celebrated its 100-year anniversary, showing just how strong the company has remained, even after a century. Canadian Tire stock managed to expand its e-commerce arm significantly during the pandemic and even got around supply-chain issues through its own in-house storage.

Yet it’s one of the best choices for TFSA investors seeking passive income right now. It trades at just 8.75 times earnings, offering a 4.88% dividend yield. Here’s what that gets you today, versus back at 52-week highs from an investment of $11,667, roughly a third of your $35,000.

CTC.A: Now$14580$6.90$552Annually
CTC.A: Highs$19759$6.90$407.10Annually

Renew your future investments

Next up, we have the future of investing, and that’s with renewable energy investments. The top choice for me has long been Brookfield Renewable Partners (TSX:BEP.UN). Brookfield stock is a solid choice, because it’s a diverse choice. It owns assets around the world, ranging from wind farms to nuclear power.

Yet again, it’s quite valuable today. Shares trade at just 1.56 times earnings, offering up a dividend yield of 5.01% for TFSA investors. Again, let’s see what you could get for that $11,667 today versus back at 52-week highs.

BEP.UN: Now$36324$1.72$557.28Annually
BEP.UN: Highs$53220$1.72$378.40Annually

Then provide some power

Finally, Power Corporation of Canada (TSX:POW) is a superior choice for long-term investors seeking another solid future performer: insurance. Not only have insurance operators like Power stock been expanding, they’re now going global and consolidating. That includes Power, which is now the umbrella company for other heavy hitters such as Lifeco and IGM Financial.

This company trades well within value range at 11 times earnings, with shares down 22% in the last year alone. With that in mind, you can certainly get a lot for the current dividend yield at 6.22% for that $11,667 investment.

POW: Now$33353$1.98$698.94Annually
POW: Highs$44265$1.98$524.70Annually

Bottom line

Are you ready for it? From that $35,000, investors can bring in a total of $1,808.22 annually, as of writing. That’s compared to $1,310.20 at 52-week highs. That’s about $500 more in annual income TFSA investors are getting at today’s prices.

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 Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Engineers walk through a facility.
Dividend Stocks

Dividend Stocks: Here’s a Diamond in the Rough Yielding Over 6%

ChemTrade Logistics is a little known gem, yielding 6.2% and generating record revenues and earnings as demand soars

Read more »

Increasing yield
Dividend Stocks

Boost Your Passive Income With These 3 High-Yielding Dividend Stocks

These three dividend stocks offer healthy dividend yields and stable cash flows to grow your passive income.

Read more »

Illustration of bull and bear
Dividend Stocks

Protect Your Wealth: 2 Defensive Gems to Buy in 2023

Looking to pick up some defensive gems for your portfolio? Protect your wealth by buying one of these stellar stocks…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

1 Oversold Dividend Stock (Yielding 6.5%) to Buy in the New Year

Here's why SmartCentres REIT (TSX:SRU.UN) is one top dividend stock long-term investors should consider in this current environment.

Read more »

Man data analyze
Dividend Stocks

2 Top Dividend Stocks to Buy and Hold for Life

Dividend stocks like Canadian National Railway and TD Bank are excellent long-term assets to buy and hold.

Read more »

money cash dividends
Dividend Stocks

Top Canadian Dividend Stocks Yielding over 5% in January 2023

Canadian dividend stocks will remain in the limelight this year amid the above-average market volatility.

Read more »

office buildings
Dividend Stocks

These 2 Canadian Dividend Stocks are a Retiree’s Best Friend

Retirees have enough to worry about, and cash is certainly high up on that list. So create some income each…

Read more »

protect, safe, trust
Dividend Stocks

3 of the Safest Dividend Stocks on Earth Right Now

The safest dividend stocks are those that pay out safe dividends and are trading at good valuations. Here are some…

Read more »