Nutrien Stock: Create Passive Income With No Start-Up Costs

Creating passive income can be difficult if you don’t have cash on hand, so start making some immediately and then make more with Nutrien (TSX:NTR) stock.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published September 20, 2023 10:00 am EDT

In an era of economic uncertainty, establishing a reliable source of passive income can be a crucial step toward achieving financial stability. Passive income not only offers financial security but also serves as a hedge against market uncertainties and unexpected financial challenges. In this article, we will explore two distinct yet complementary strategies for generating passive income: peer-to-peer lending and investments in the promising world of agricultural stocks.

A tractor harvests lentils. — Source: Getty Images

Consider peer-to-peer lending

Peer-to-peer lending has emerged as a viable and accessible method for individuals to generate passive income. Platforms like Prosper and LendingClub facilitate lending money to individuals or small businesses in exchange for interest payments. Let’s delve into the specifics of this income stream and how you can get started while ensuring your financial safety.

When considering peer-to-peer lending, it’s essential to choose reputable platforms with a track record of reliability and borrower scrutiny. Both Prosper and LendingClub have established themselves as leaders in the industry, connecting lenders with borrowers efficiently. To protect your investment, diversify your lending across multiple borrowers to spread risk. Many lending platforms offer automated investment tools that can help you achieve this diversification.

The potential returns from peer-to-peer lending can vary depending on factors such as the interest rate you set and the creditworthiness of your borrowers. On average, lenders can expect to earn annual returns ranging from 5% to 10%, making this a lucrative passive-income option.

Why agricultural stocks are an excellent option

As the world’s population continues to grow, the demand for food production and agricultural resources is on the rise. Investing in agricultural stocks, particularly those related to crop nutrients and arable land, presents an exciting opportunity for passive income.

With the global population projected to reach 9.7 billion by 2050, the need for efficient and sustainable agriculture becomes paramount. Crop nutrients play a critical role in enhancing agricultural productivity.

Nutrien (TSX:NTR) stands out as a notable player in the agricultural industry. This leading fertilizer producer and agricultural solutions provider has a rich history and a strong track record of success. Notably, Nutrien’s stock has shown resilience, even in challenging economic environments.

Nutrien stock’s strategic acquisitions and investments in technology have contributed to its success. Furthermore, the company has demonstrated its adaptability by thriving amid sanctions against Russia, showcasing its ability to navigate complex geopolitical challenges.

Nutrien stock offers an attractive dividend of $2.81 per share, providing investors with a steady stream of passive income. By investing in Nutrien stock through a Tax-Free Savings Account (TFSA), you can maximize your income potential while enjoying tax benefits.

Bottom line: Maximize your passive income

Let’s consider how you can harness the power of peer-to-peer lending and Nutrien stock to create a substantial passive-income stream. Suppose you generate $5,000 annually from peer-to-peer lending. If you were to invest this income in Nutrien stock, priced at $88 per share, you could purchase approximately 56 shares. With each Nutrien share providing $2.81 in dividends, your 56 shares would yield approximately $157.36 in annual dividend income.

In summary, by coupling the passive income generated from peer-to-peer lending with investments in Nutrien stock, you can potentially create a robust and diversified income stream. Moreover, these strategies can be initiated with minimal upfront costs, making them accessible to a wide range of investors.

In these uncertain times, it’s crucial to explore diverse avenues for financial stability and passive-income generation. Peer-to-peer lending and investments in agricultural stocks like Nutrien stock offer promising opportunities to secure your financial future while navigating the ever-changing economic landscape.