For $1,000 in Monthly Passive Income, Buy 15,000 Shares of This Stock

This dividend stock offers substantial passive income if you have the cash set aside for such an investment, and could lead to far more in the future.

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Imagine, if you will, creating a stream of passive income that amounted to a part-time job. $1,000 every single month coming in, but without even lifting a finger. That’s what you can get by investing in the right TSX stock.

Granted, if you consider this option, there are certainly some things to be aware of. So let’s get into those, along with how you can make that $1,000 each month.

Consider these points first

Before you put everything you have towards one TSX stock for some passive income, it’s important to note a few things. First, meet with your financial advisor. This is something every Canadian should do, whether they’re investing or not.

A financial advisor can speak to your needs, and help you invest most of your income into conservative, long-term growth strategies that include diversification and dividends. They should also tell you how much money you can set aside to, basically, have fun with!

These are the funds you can use to invest in something like this. And if you’ve been saving up for a while, you may be sitting on enough to create $1,000 in passive income right now.

The TSX stock I’d buy

If you’re investing in a long-term hold, you want to make sure that you will continue to see passive income come in long term as well. That’s why I recommend dividend stock NorthWest Healthcare Properties REIT (TSX:NWH.UN) so often.

NorthWest has been around for a few years, but has long-term contracts that will likely see it grow far beyond. Further, it has an ultra-high dividend yield at 9.45% as of writing! The company continues to do well, as its properties produce cash flow from long-term contracts that average around 14 years. Plus, while it hasn’t increased its dividend yet, it’s using that cash to acquire more healthcare properties around the world.

And that’s the key in this case. You can look forward to cash coming in long-term because we need healthcare properties no matter what happens. Whether it’s administrative, hospitals, doctors offices, we need it all. Which is why you can look forward to sustained growth in the foreseeable future.

Make $1,000 each month

Now for the fun part. How much would you have to invest right now to create $1,000 per month? Further, what would you have had to invest at 52-week highs, given the current downturn?

I’ll answer each of these questions in the table below.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
NWH.UN past highs$1415,000$0.80$12,000monthly$210,000
NWH.UN current$8.4015,000$0.80$12,000monthly$126,000

As you can see, you would not only save $84,000 by investing right now, you could make that amount in the near future. Granted, it will take a significant investment of 15,000 shares to create $12,000 annually, and $1,000 per month. But if you’re sitting on a lot of cash, this could be an influx of passive income you could look forward to now, and for decades to come.

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 NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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