The new year is on the way, and now is a great time to use up the rest of your contribution room in your Tax-Free Savings Account (TFSA). That’s thousands of dollars that can be used to set you up for 2024 and a large amount of passive income. However, even if you want to just put $500 towards a few stocks, that will certainly be enough.
Today, we’re going to look at the top stocks that investors should consider with just $500 on hand. Those that could create huge passive income in 2024 through both dividends and returns. So, here are the ones I would consider first.
goeasy
Shares of goeasy (TSX:GSY) have been climbing higher and higher on the back of strong earnings. In fact, the company has produced record-setting earnings through loan originations for the company — all at a time when, really, it shouldn’t be doing well!
Higher interest rates should have led to lower loans on hand, but that hasn’t been the case. So, when interest rates come down, goeasy stock should have even more growth coming its way. This is why it should certainly be one of the stocks to consider with just $500 for passive income.
If you put that $500 towards goeasy stock, here is what you could get from that investment, with shares reaching 52-week highs in 2024.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | PORTFOLIO TOTAL |
| GSY – now | $158 | 3 | $3.84 | $11.52 | quarterly | $474 |
| GSY – highs | $164 | 3 | $3.84 | $11.52 | quarterly | $492 |
Just $500 could be used to invest $474 in goeasy stock. That would bring in $11.52 in dividend income, as well as $18 in returns. Yet over time, goeasy stock has even more room to grow.
Nexus stock
Not willing to wait? Then I would Nexus Industrial REIT (TSX:NXR.UN). Nexus stock is a strong option as a real estate investment trust (REIT) that focuses on industrial properties. These properties will be here no matter what goes on in the world and continue to be in high demand to ship, receive, and assemble the products we need.
Nexus stock offers a great deal! Shares trade at just 4.53 times earnings, offering up a juicy 8.04% dividend yield. While shares are down 16% in the last year, they’ve risen 33% since bottoming out back in October. So, I would certainly use it while you can and put that $500 to work.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | PORTFOLIO TOTAL |
| NXR.UN – now | $8 | 63 | $0.64 | $40.32 | monthly | $500 |
| NXR.UN – highs | $11.25 | 63 | $0.64 | $40.32 | monthly | $708.75 |
As you can see, you definitely get more passive income this way. However, there is a bit more risk, as Nexus stock hasn’t been around as long and doesn’t have as much of a recovery. Even so, you’ll gain $40.32 in dividends and $208.75 in returns for passive income in 2024 once reaching 52-week highs! This will certainly allow you to leave 2023 on a high note.
