How to Build a Bulletproof Monthly Passive-Income Portfolio With Just $10,000

Investing in dividend-paying stocks or ETFs (exchange-traded funds) with monthly payouts is a low-cost way to begin a passive-income stream. Here, we look at two TSX stocks and one dividend ETF that you can consider investing in for a monthly payout.

Slate Grocery REIT

Valued at $668 million by market cap, Slate Grocery REIT (TSX:SGR.UN) owns and operates grocery-anchored real estate in the United States. Its portfolio of properties is located in major metro markets south of the border and is currently worth roughly $2.4 billion.

A resilient portfolio and strong credit tenants provide the real estate investment trust (REIT) with durable cash flows across market cycles. Slate Grocery pays shareholders a monthly dividend of $0.098 per share, translating to a yield of more than 10%. The grocery sector is necessity-based and has showcased its ability to outperform in periods of economic volatility.

Moreover, strong tenant demand, low vacancy, and limited new construction provide the backdrop for consistent rent growth. Online grocery sales account for 11.2% of total sales and is forecast to grow to 13.6% by 2027.

According to Slate Grocery, brick-and-mortar stores are essential in distributing food and other essential products to end consumers by facilitating last-mile delivery. In fact, food retailers account for 18 of the 25 largest consumer food distributors globally.

In addition to a recession-resistant business, steady increases in retail sales enable tenants to manage growing rental rates.

Pizza Pizza Royalty stock

Pizza Pizza Royatly (TSX:PZA) pays a monthly dividend of $0.078 and offers a yield of 6.7%. Its same-store sales increased by 4%, while royalty sales rose by 7% in the fourth quarter (Q4) of 2023.

Moreover, same-store sales growth for the quick-service restaurant chain rose by 8.2% in 2023, showcasing the resiliency of its business amid a challenging macro backdrop.

Pizza Pizza opened 45 new restaurants last year, allowing it to cross the $600 million threshold and raise dividends multiple times. Pizza Pizza paid $5.7 million to shareholders in quarterly dividends, up from $5.1 million in the year-ago quarter.

iShares Core MSCI Canadian Dividend Index ETF

iShares Core MSCI Canadian Dividend Index ETF (TSX:XDIV) is a popular ETF in Canada. With a monthly payout of $0.13 per share, the XDIV ETF offers a forward yield of 5.8%.

Investing in an ETF is the best way to gain exposure to the equity markets. Typically, an ETF holds a basket of stocks across sectors, which provides diversification and lowers overall risk.

With more than $1.1 billion in assets under management, the XDIV ETF has an expense ratio of 0.11% and a management fee of 0.10%. The ETF has 19 stocks in its portfolio, including Suncor Energy, Pembina Pipeline, Royal Bank of Canada, Toronto-Dominion Bank, and Fortis, which account for 45% of the ETF.

The financial sector accounts for 42% of the fund, followed by energy at 23.8% and utilities at 17%.

The Foolish takeaway

You can consider allocating $1,000 each in Slate Grocery REIT and Pizza Pizza Royalty and the rest in the XDIV ETF, which would allow you to earn more than $640 in annual dividends.