How to Make $1,000 in Passive Income With Just $17,232 Invested

Canadians don’t need substantial capital to make $1,000 in passive income from two high-yield dividend stocks.

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Creating passive income or converting capital into recurring cash flow streams is possible through dividend investing. If you have a specific amount in mind, say around $1,000, a $17,231.86 investment in two TSX high-yield dividend stocks should be enough. Choice Properties (TSX:CHP.UN) and Evertz Technologies Limited (TSX:ET) are your investment prospects. 

The real estate investment trust (REIT) pays a 5.1% dividend, while the tech stock yields 6.72%. If you purchase 662 shares of each at their current share prices, the total annual payout is $999.62. The table below shows the allocation and payout breakdown:

CompanyPriceNo. of SharesDividend per ShareTotal Payout (Annual)Frequency
Choice REIT$14.68662$0.75$496.50Monthly

Enduring value proposition

Choice Properties owns, operates, and develops high-quality commercial and residential properties. With a market cap of $10.62 billion, it’s one of the largest REITs in Canada. The long-standing strategic relationship with Canada’s iconic retailer, Loblaw Companies, is a competitive advantage.

Mixed-use and residential assets in attractive markets across Canada complete the portfolio (702 properties). According to management, the combination of stability and growth creates enduring value for stakeholders. The long-term focus also assures capital preservation and stable net operating income (NOI) growth.

As of year-end 2022, the occupancy rate of 97.8% indicates a positive momentum, new leasing velocity, and tenant retention. Choice’s retail portfolio (80% of the total) is also one of the best-performing in the country’s REIT industry. The lease contracts are with grocery stores, pharmacies, and other necessity-based tenants, and these tenants provide stable and steady cash flow growth.

In 2022, net income soared nearly 3,135% year over year to $744.25 million. Its chief financial officer Mario Barrafato said the REIT’s disciplined approach to financial management and industry-leading balance sheet provides flexibility and stability in the current economic environment.

Apart from the resilient retail segment, the robust pipeline of commercial and mixed-use developments offers an immense value opportunity. On the industrial side, the purpose-built distribution facilities are for Loblaw and high-quality, generic assets. There are also 18 active projects under development.

A strong foundation for growth

Evertz is a rare gem because the tech stock is a generous dividend payer. This $873.11 million global tech company operates in the television, telecommunications and new-media industries. It designs, manufactures and markets video and audio infrastructure solutions. The customer base includes broadcasters, content creators, specialty channels, and television service providers.

In the first three quarters of fiscal 2023 (nine months ended January 31, 2023), net earnings declined 13.95% to $46 million compared to the same period in fiscal 2022. Notably, cash from operations in the third quarter fiscal 2023 rose 95.2% year over year to $16.2 million,

Management will leverage its technologically superior solutions to capitalizes on enormous, exciting opportunities. It also expects to benefit from an economic revival and the industry’s transition to IP and Cloud-based solutions.

You can start small

People don’t need substantial capital to invest in dividend stocks and create passive-income streams. You can start small with reliable dividend payers and then accumulate more shares by reinvesting the dividends.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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