The Tax-Free Savings Account (TFSA) is one of the best ways for investors to put their passive income stream to work. But what if you haven’t found the perfect passive income stream for you?
Today, I’m going to go over one passive income stream you can try, along with a top stock pick. Together, you can make substantial monthly passive income that lasts a lifetime.
1 easy passive income stream for $0 startup costs
I am constantly looking for passive income streams that actually sound feasible, with no start-up costs, and are indeed passive. There are a lot of passive income streams out there that are really side hustles, which also means they’re just…jobs.
So today, let’s look at what you can get from a real passive income stream such as affiliate marketing through a site such as Amazon. Amazon allows you to join as an affiliate marketer. You simply post a picture, title, and description to a place such as Pinterest or Instagram. Then, drop in a link to the product you’ve posted.
Whenever someone purchases a product through that link, you get paid! Now the percentages and amounts can change, but a key here is to look for popular items. Simply go to Amazon and look at trending items with high reviews. That’s an easy way to post about items that people already enjoy.
What’s great is there is no limit on how many posts you can make, and no start-up costs. It will probably start out slow, but you can go from making anywhere from $100 to thousands as you get the hang of it!
Pair it with a top stock
This passive income stream is great if you need extra cash, but it can also turn into even more. To earn more, you need to start investing. That’s where a TFSA comes into play. The TFSA can turn your income into a tax-free passive income stream.
I would invest in a high-yield dividend stock that offers stable returns. For example, a solid company that I would consider for passive income which has a lot of room for growth is Hydro One (TSX:H).
Hydro One stock offers investors a dividend yield at 3.28% as of writing. Shares are up 4% in the last year, which is on par with the TSX today. However, it has also seen stable growth throughout the last few years even during the pandemic and market downturns. This comes from being in the utilities sector, but also because it’s a renewable energy stock. Let’s say you start eventually making $1,000 each month. Here is how much passive income that could bring in through dividends alone.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| H | $37 | 324 | $1.19 | $385.56 | quarterly |
So you can now create passive income through this dividend stock, turning your original income stream into more passive income. Both of these options take very little effort for us lazy money seekers. Yet both can create incredibly lucrative income streams. Combined, you’re now making $1,385.56 each month! And that’s without returns from Hydro One stock.
Bottom line
While there are a lot of articles out there claiming to be about passive income, most are side hustles. And these part-time jobs are taking away from your time at your valuable full-time job. Don’t risk your day job for a job that’s only bringing in a couple hundred bucks. Instead, create long-term, lifelong passive income today through these safe and stable methods.
