Buy 32 Shares in This Glorious Dividend Stock and Create $1,074.88 in Passive Income

This dividend stock is also a growth stock you’re going to want on your side over the next year and beyond for top passive income.

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Canadians continue to look to the market and wonder one thing and one thing only: when on earth are interest rates going to come down? Yet if you’re looking for passive income to make up the difference, it shouldn’t really matter about interest rates.

Instead, you should be looking at the market and wondering where on earth is the best place to put my money with all these great stocks on sale!

Thing of it that way

Rather than looking at the volatility of the market and being fearful about the immediate future, investors should think of it another way. That way is to look at this as a sale, and a good one, too. There are so many companies offering up a steal on share prices. But not all of them.

Which is why if you’re looking to create passive income that goes beyond 2024, then you need to be selective. After all, it’s likely to be this year that interest rates come down. When they do, there is likely to be a rebound in the market. Once the rebound comes, it will stabilize. And when that happens, the passive income you’re used to won’t be around much longer.

So today we’re going to consider a stock that has seen passive income climb in more ways than one. What’s more, it’s likely to continue to offer this opportunity for years in the future. Which is why we’re going to get into why it’s a solid buy on the TSX today.

goeasy stock

Goeasy (TSX:GSY) offers more than one type of passive income stream for investors. First off, the company has seen returns soar over the last few years. That includes during the last year, when shares of goeasy stock increased 21%, as of writing. This comes from the company continuing to see record loan originations during some of the most volatile periods on the market.

What’s more, it also offers a strong dividend. That dividend yield currently holds steady at 2.5% as of writing. While that isn’t the highest dividend yield out there, remember. We’re thinking of passive income. That’s income from both returns and dividends.

And even better, goeasy stock has even more growth to look forward to. The company is a huge loan provider, and that’s proven to be beneficial in this time of higher interest rates. Yet even with lower interest rates, Canadians will likely flock to the company for the best rate around.

How much you could bring in

Honestly, the next year is likely to be just as strong as the last for goeasy stock. It looks like a strong long-term investment for at least the next few years. With that in mind, let’s say we see shares increase another 21%, and add in that dividend. Here’s what a $5,000 investment could turn into then on the TSX today.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYPORTFOLIO TOTAL
GSY – now$15432$3.84$122.88quarterly$5,000
GSY – highs$18632$3.84$122.88quarterly$5,952

You’ve now made $952 in returns and $122.88 in dividends in just a year. That’s total passive income of $1,074.88 in only a year’s time! And that’s likely something you will continue to see climb for the next few years at least.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in goeasy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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