Canadian investors looking to build a passive-income portfolio for monthly income can certainly get started in 2024. Even if you don’t have $20,000 right away, there are ways to easily create that by using everything at your disposal. So, instead of focusing on making cuts, which you’ve likely already done, let’s focus on creating more. Here’s how to get started and create massive passive income for 2024.
Creating cash
First off, how are you going to create $20,000 to invest for 2024? To do that, let’s come up with a few strategies that Canadians can use — besides starting a side hustle. I have a bone to pick with side hustles, as these take away from focusing on your day job. Instead, you’re just creating a part-time job. Let’s just call a spade a spade.
Instead, work hard at the job that you have! Consider asking for a raise then if your employer is open to it. If they’re not, perhaps consider going elsewhere! You’re likely to find a similar job that can provide you with more income. In fact, the average raise could be half of the $20,000 you’re looking for!
From there, consider easy passive-income streams — ones I tend to lean towards are those that don’t take any effort and are easy to set up. That would come down to storage and parking. If you have a parking spot you can rent out near a heavy-traffic location like a university or hospital, consider renting it out. Same with storage if you have a storage unit on your premises. This could lead to another $10,000 per year.
Before investing
Now, before investing in the first popular stocks that are on the market, there are a few things to consider. Yes, you want to create a passive-income portfolio from dividends — but not just dividends. Returns are just as important, if not more so. If a company isn’t performing well, then it can’t continue to support its dividend. So, make sure you’re looking at a company’s long-term performance rather than just narrowing your focus on a high dividend.
What’s more, consider safety. If you want a strong investment, then it might be a good idea to consider investing in an exchange-traded fund (ETF). This will provide you with an entire portfolio at the click of a button. And you can get in on monthly passive income, even if the ETF invests in stocks that don’t provide dividends!
One to consider
If you’re considering this option, then I would use an ETF such as iShares S&P/TSX Composite High Dividend Index ETF (TSX: XEI). This dividend focuses on the performance of the composite high-dividend index, which consists of the 75 highest-yielding Canadian stocks on the TSX. It currently boasts a dividend yield of 5.26% as of writing, with shares up 3% in the last year and 11% in the last three years.
Therefore, you’d receive monthly dividends from strong Canadian companies in a range of sectors and backgrounds, all while seeing your returns come in strong. So, if you’re looking for passive income, this is one of the best ways to start making it in 2024!
