To Make $631.66 Annually While Doing Nothing, Invest $9,000 in These 3 Stocks

Do you need extra cash? These three are top-notch options that can bring in stellar dividends without lifting a finger.

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Are you looking for extra cash in 2024? There are certainly many ways to get there, but many of the side gigs that were once promising are proving far more work than we thought. This is why investing has made a roaring comeback.

Investors looking to bolster their portfolios with strong dividend stocks should definitely consider Chemtrade Logistics Income Fund (TSX:CHE.UN), Bank of Montreal (TSX:BMO), and SmartCentres Real Estate Investment Trust (TSX:SRU.UN). These stocks are not only enticing due to their impressive dividend yields, but they also have solid fundamentals, strong sector positions, and promising outlooks.

Chemtrade

First up, Chemtrade is a hidden gem in the chemical industry. This company has been steadily paying dividends, boasting a yield of around 7.14%. Chemtrade specializes in providing industrial chemicals and services, a sector that’s essential to various industries including water treatment, food processing, and pharmaceuticals. This diversification provides a stable revenue stream.

What makes Chemtrade particularly appealing is its resilience and adaptability. Despite economic fluctuations, Chemtrade has maintained a robust earnings performance. In the most recent quarter, Chemtrade reported a revenue increase of 10%, showcasing its ability to grow even in challenging market conditions.

The company’s strategic initiatives, including cost reduction and efficiency improvements, have bolstered its profitability. With the global demand for industrial chemicals on the rise, Chemtrade is well-positioned to capitalize on this trend, making it a strong contender for dividend investors.

BMO stock

Next, we have BMO stock, a stalwart of the Canadian banking sector. Known for its consistent dividend payments, BMO currently offers a yield of around 5.35%, making it an attractive option for income-seeking investors. BMO’s strength lies in its diversified financial services, which include wealth management, investment banking, and personal and commercial banking.

BMO’s earnings performance has been nothing short of stellar. In the last quarter, BMO reported a net income of US$2.22 billion, a 12% increase year over year. The bank’s robust capital position, with a common equity tier-one (CET1) ratio of 13.4%, underscores its financial stability and ability to weather economic downturns. 

Additionally, BMO has been actively expanding its footprint in the U.S. market, which promises to drive future growth. The bank’s prudent risk management and focus on digital transformation further enhance its competitive edge, ensuring continued profitability and reliable dividend payouts.

SmartCentres REIT

Finally, let’s talk about SmartCentres, a powerhouse in the retail real estate sector. With a dividend yield of approximately 8.46%, SmartCentres offers an enticing income stream for investors. The real estate investment trust (REIT) owns and manages a diverse portfolio of properties, including shopping centres anchored by Walmart, which provides a stable and reliable tenant base.

SmartCentres has shown impressive earnings resilience, with a recent occupancy rate of over 97%, highlighting the robustness of its property portfolio. The REIT’s strategic focus on mixed-use developments, including residential and office spaces, positions it well for long-term growth. In the latest quarter, SmartCentres reported funds from operations of US$75 million, a 5% increase year over year. The ongoing urbanization trends and consumer shift towards convenience bode well for SmartCentres, ensuring sustained demand for its properties.

Earning that income

So, let’s say you put $3,000 towards each of these dividend stocks for $9,000 total. Here’s what investors could create annually from doing nothing else whatsoever.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYPORTFOLIO TOTAL
CHE.UN$9.20326$0.66$215.16monthly$3,000
BMO$115.2526$6.20$161.20quarterly$3,000
SRU.UN$21.70138$1.85$255.30monthly$3,000

In total, that’s $631.66 just from holding the stocks, not even counting returns! This makes them dividend stocks for investors to consider.

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 Walmart. The Motley Fool recommends SmartCentres Real Estate Investment Trust and Walmart. The Motley Fool has a disclosure policy.

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