How I’d Invest $2,000 in January to Make Easy Passive Income

Canadian investors on the hunt for passive income should consider splurging on top stocks like Savaria Corporation (TSX:SIS) and others.

money cash dividends

Image source: Getty Images

The S&P/TSX Composite Index fell 34 points to close out the trading day on Thursday, January 19. Most sectors finished the day in the red, apart from energy and battery metals. Canadian stocks had a solid start to the year, broadly speaking. However, economic uncertainty and the squeeze of high interest rates have continued to rattle markets. Today, I want to discuss how I’d spend $2,000 in January to churn out strong passive income. Let’s jump in.

Here’s why I’m investing $500 in this healthcare stock right away

Savaria (TSX:SIS) is a Laval-based company that provides accessibility solutions for the elderly and physically challenged people in Canada, the United States, Europe, and around the world. Its shares have plunged 16% year over year as of close on January 19. The stock has jumped 6% in the first weeks of the new year.

Beyond passive income, investors should also seek exposure to Savaria’s industry. Grand View Research recently estimated that the global personal mobility devices market was valued at US$14.9 billion in 2021. It projected that this market would deliver a compound annual growth rate (CAGR) of 6.3% from 2022 through to 2030.

This stock last closed at $14.97. We can snatch up 30 shares of Savaria for a purchase price of $449.10. It offers a monthly dividend of $0.043 per share. That represents a 3.4% yield. Our investment will allow us to churn out passive income of $15.48 annually.

The Keg is an institution you can count on for passive income

Keg Royalties Income Fund (TSX:KEG.UN) is a great target for passive-income investors who want something more meaty. This Vancouver-based company operates as an open-ended limited purpose trust. Its shares have increased 7.7% compared to the previous year.

In the third quarter (Q3) of 2022, Keg Royalties saw royalty pool sales grow 17% to $178 million and posted 77% growth to $496 million in the year-to-date period. Distributable cash soared 138% to $0.813 per fund/unit in the first nine months of fiscal 2022.

Shares of Keg Royalties closed at $16.05 on January 19. We can snatch up 35 shares of Keg Royalties for a total price of $561.75. This stock offers a monthly distribution of $0.095 per share, which represents a tasty 7% yield. The purchase will allow us to generate annual passive income of $39.90.

Why you should look to automobile dealerships for passive income in mid-January

Automotive Properties REIT (TSX:APR.UN) is a real estate investment trust (REIT) focused on owning and acquiring primarily income-producing automotive dealership properties located across Canada. This passive-income stock has declined 14% year over year. Its shares have dripped 3.2% so far in 2023.

The company unveiled its Q3 fiscal 2022 earnings on November 10. It posted rental revenue of 6% to $61.9 million in the first nine months of FY2022. Adjusted funds from operations (AFFO) jumped 3% to $34.0 million. This stock closed at $12.20 on Thursday, January 19. I’d like to snag 40 shares of this REIT for a purchase price of $488. It offers a monthly dividend of $0.067 per share, representing a 6.5% yield. This investment will allow us to churn out annual passive income of $32.16.

One more stock I’d invest $500 today

Northland Power (TSX:NPI) is the fourth and final dividend stock I’d look to snatch up to bolster our passive-income capabilities in 2023. This Toronto-based company develops, builds, owns, and operates clean and green power projects in North America and around the world. Its shares have climbed 4.5% year over year.

In Q3 2022, the company posted total sales of $556 million — up from $432 million in the prior year. It posted net income of $76 million compared to a net loss of $5 million in the third quarter of fiscal 2021.

Shares of Northland Power closed at $38.31 on January 19. We can purchase 13 shares for a total price of $498.03. It offers a monthly dividend of $0.10 per share. That represents a 3.1% yield. Our investment will allow us to generate annual passive income of $15.60.

Bottom line

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCY
SIS$14.9730$0.043$1.29Monthly
KEG.UN$16.0535$0.095$3.32Monthly
APR.UN$12.2040$0.067$2.68Monthly
NPI$38.3113$0.10$1.30Monthly

An investment of $2,000 in these dividend stocks will allow us to pocket an additional $103.14 in annual passive income. Fortunately, stocks like Savaria and Northland Power also offer a great shot at strong capital growth.

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 has positions in and recommends Automotive Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Investing

growing plant shoots on stacked coins
Dividend Stocks

Here Are My Top 5 Dividend Aristocrats to Buy Right Now

Now is the time to buy these top five dividend aristocrats at their two-year low before they recover to 2021…

Read more »

Target. Stand out from the crowd
Stocks for Beginners

5 Stocks You Can Confidently Invest $500 in Right Now

Whether it's stocks making a comeback or proven investments over decades, these five belong in your portfolio.

Read more »

edit Businessman using calculator next to laptop
Investing

Unearthing Incredible Value: 2 Dirt-Cheap Commodity Stocks That Demand Attention Today

Barrick Gold (TSX:ABX) and another great mining stock look like huge value plays right here.

Read more »

A woman shops in a grocery store while pushing a stroller with a child
Investing

New Rules for Grocers: 1 Canadian Grocery Stock That Could Soar

Metro (TSX:MRU) stock looks poised to win as it signs onto the new grocery code of conduct.

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

Is NorthWest REIT Stock the Best High-Yield Dividend for You?

NorthWest REIT (TSX:NWH.UN) offers a substantial dividend, but exercise caution with this riskier stock.

Read more »

oil and gas pipeline
Energy Stocks

TC Energy Stock Is Starting to Get Ridiculously Oversold

TC Energy (TSX:TRP) stock is one of those deep-value dividend plays for the next decade and beyond.

Read more »

An analyst uses a computer and dashboard for data business analysis and Data Management System with KPI and metrics connected to the database for technology finance, operations, sales, marketing, and artificial intelligence.
Investing

Want to Get Richer? Here Are the 3 Best Stocks to Buy Now and Hold Forever

These three stocks all have fantastic operations and years of growth potential, making them three of the best to buy…

Read more »

STACKED COINS DEPICTING MONEY GROWTH
Dividend Stocks

Income Stocks: A Once-in-a-Decade Chance to Get Rich

These two income stocks are among the best on the TSX for those seeking consistent total returns over a long-term…

Read more »