Passive Income: How to Turn $60,000 in Cash to $319 Monthly Cash Flow

Canadian investors are spoilt for choices when it comes to passive-income opportunities in the stock market. Investing in reliable dividend stocks trading on the TSX offers one of the best ways to do it.

Dividend-paying companies distribute a share of profits with investors on monthly or quarterly schedules. Besides delivering wealth growth through capital gains, the consistent dividend income lets investors line their account balances with additional cash.

By creating a solid collection of reliable dividend stocks in your self-directed portfolio, you can set yourself up to earn a significant passive income. To this end, buying and holding the right TSX stocks can be an excellent way to set up an income-generating portfolio.

Today, I will discuss three TSX stocks you can invest in. I will also share estimated monthly cash flows from allocating a hypothetical $60,000 in these dividend stocks.

BCE

BCE (TSX:BCE) is a $52.60 billion market capitalization giant in the Canadian telecom space. Providing wireless and wired internet, broadband, TV, and landline phone services throughout Canada, it holds almost a third of the telco market share in Canada. As the largest telco in the country, it is a solid dividend stock to consider.

Well positioned in an industry with substantial barriers to entry and a massive long-term growth potential, BCE stock generates significant cash flow each year. As of this writing, it trades for $57.66 per share, boasting a juicy 6.71% dividend yield. Paying at a quarterly schedule, it can be a reliable dividend stock to consider as part of a self-directed, income-generating investment portfolio.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) is a $76.84 billion market capitalization bank operating as Scotiabank. The Canadian multinational banking and financial services company is the third largest among its peers in Canada’s Big Six banks by deposits and market capitalization.

With rate hikes across Canada and the U.S. remaining too high, there is a possibility of a short and mild recession. If that happens, it can lead to a decline in its share prices.

As of this writing, Scotiabank stock trades for $64.48 per share, boasting an inflated 6.58% dividend yield that you can lock into your portfolio.

Down by 13.45% from its 52-week high, it trades at a significant discount. Despite the downturn, it reported decent third-quarter earnings in fiscal 2023. In anticipation of defaults, Scotiabank has increased its provision for credit losses, but loans look stable overall.

As long as there is no complete meltdown in the real estate sector, the banking segment should not see substantial losses through mortgage defaults.

Canadian Tire REIT

CT REIT (TSX:CRT.UN) is a $16.51 billion market capitalization real estate investment trust (REIT) investing in retail properties nationwide.

The major chunk of its revenue comes through leasing properties to Canadian Tire Corporation, the company operating Canadian Tire retail stores. Besides the commercial properties anchored by Canadian Tire, it also has distribution centres and mixed-use commercial properties in its portfolio to generate cash flows.

As of this writing, CT REIT trades at $14.78 per share, close to its 52-week lows. Down by 13.36% from its 52-week high, it trades at a significant discount. As a REIT, it pays its shareholders their dividends at a monthly schedule, funded by solid cash flows from its high-quality portfolio of properties throughout Canada.

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Foolish takeaway

Here is a table showing a breakdown of the monthly cash flows you can earn by allocating a hypothetical $60,000 across these three TSX dividend stocks.