Passive Income: How Much Should You Invest to Earn $854.19 Every Month?

Some of the top investments that Canadians continue to look for these days are passive income stocks. Yet mainly, Canadian investors are seeking out dividends from passive income investments. But if you’re looking for high passive income in 2024, you need to consider returns as well.

It would take a lot of cash to invest in a dividend stock that creates thousands each month. Yet if you add in returns, suddenly your investment is a lot lower. So let’s look at a stock investors can consider, and what it would take to make some crazy monthly passive income.

Set up for success

Let’s say your plan as an investor is to create passive income through dividends and returns on an annual basis. This could be from identifying a strong stock with a strong outlook. However, you don’t want to put all your cash into one basket year after year.

Which is why it’s important to set yourself up for success. Over time, long-term investing is the best way to make a lot of money. So invest in things like bonds, guaranteed investment certificates (GIC), and other long-term investments as a base.

From there, you could certainly use your other cash for investing towards a passive income stock – one that is looking to create a lot of income in the next year. But at least you won’t be out of luck should the company not perform as you thought it would.

A stock to consider

Now, for a stock to consider for some superior passive income in 2024. One that analysts have identified looks strong in the next year is Propel Holdings (TSX:PRL). This financial services company has seen strong growth in the last year, jumping 118% as of writing!

Yet analysts believe there is even more to go after a meeting with management. This was fed by the continued demand for alternative lending platforms outside the bigger banks. The demand has also helped the company’s loan book, allowing it to stay on top of any credit losses. In fact, it’s doing so well that the lender doesn’t believe it will need more capital to support growth in either the near or medium term.

So now, analysts are starting to upgrade this financial services company. Shares are now at 52-week highs, but this stock could easily double once more in the near future. All while adding a dividend yield at 2.65% as of writing.

How much you could get

So for investors looking for passive income, now is a great time to consider a stock such as Propel stock. This dividend stock could easily double in share price once more. And if that happens, even a $10,000 investment could create incredible income.

As you can see, investing $10,000 could increase your shares to $19,999.50, but also add $250.74 annually. That would create returns of $9,999.50, for total passive income of $10,250.24. This would create monthly passive income of $854.19.