Should you invest $1,000 in iShares S&P/TSX 60 Index ETF right now?

Before you buy stock in iShares S&P/TSX 60 Index ETF, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and iShares S&P/TSX 60 Index ETF wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

Passive Income: How to Make $299 Per Month Tax Free by Doing Nothing

First National Financial (TSX:FN) stock can pay $299 per month in dividend income with a surprisingly small sum invested up front.

| More on:

Have you ever wanted to earn significant sums of passive income each month tax-free?

It might sound like a “too good to be true” proposition, but modest sums of monthly tax-free income can be earned. If you hold your investments in a Tax-Free Savings Account (TFSA), you can also enjoy tax-free status on those investments.

How much tax-free passive income can you earn? Well, if you were 18 or older in 2009, you have accumulated $95,000 worth of TFSA contribution room. If you haven’t made any deposits yet, you can immediately deposit $95,000 into a TFSA, invest it in TSX index funds, and get to $2,850 per year, which works out to $237.50 per month (though you actually get the income quarterly). That’s a decent amount of passive income right there. However, if you’re willing to invest a little more aggressively, you can get more than that on a literal monthly schedule.

In this article, I will explore one stock that could be part of a portfolio of monthly paying dividend stocks paying you $299 per month in your TFSA.

First National

First National Financial (TSX:FN) is a monthly pay TSX financial stock that pays out $0.2041 in dividends per quarter, or $2.45 per year. At today’s stock price of $36.05, you get a 6.8% yield. Invest $52,764 at a 6.8% yield, and you get $299 per month in passive income. Since $52,941 is well below the typical middle-aged Canadian’s TFSA contribution room, you can probably tax shelter 100% of $52,941.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCY
First National$36.051,463$0.204167/month ($2.45/year).$299/month ($3,584/year)Monthly
First National Financial: dividend math

Of course, you should never invest 100% of your portfolio in just one stock. The Motley Fool recommends 25 minimum. I’m using First National here just to illustrate what’s possible with high-yield monthly paying dividend stocks. They can produce quite a bit of passive income — and you can shelter much of it in a TFSA.

The case for First National

All of the above being said, FN is a worthy addition to a TFSA dividend stock portfolio. The company scores well on the profitability factor, with an 83% gross margin, a 35% net income margin, and a 42% return on equity (ROE). It has done a lot of compounding over the last five years, with revenue up 11.2% and earnings up 11.7% per year. Finally, it’s cheap, trading at eight times earnings, 3.16 times book and 11.9 times cash flow. Is FN such a miraculous stock that you can just invest your entire TFSA into it? No. There are real risks, such as the possibility of more Bank of Canada interest rate cuts. But the stock is appealing enough to be a part of a diversified portfolio.

Created with Highcharts 11.4.3First National Financial PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Foolish takeaway

If you have enough TFSA contribution room, it’s definitely possible to get $299 per month in dividends. I wouldn’t call such an outcome “likely” or the strategies that might lead to it “safe,” but with a higher-than-average risk tolerance, you might just make it work. Of course, you shouldn’t go investing all of your money into First National Financial stock, but a sizable portfolio weighting might make sense.

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 Andrew Button has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

5 Canadian Dividend Stocks to Buy and Hold for the Next 20 Years

These Canadian stocks have paid dividends for decades, making them reliable investments to generate regular passive income.

Read more »

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $30,000

If you have $30,000 you're willing to invest, these are some of the first Canadian stocks to consider on your…

Read more »

rail train
Dividend Stocks

What to Know About Canadian Pacific Railway Stock for 2025

CP stock has now gone through a major merger, so what do investors have to look forward to?

Read more »

ways to boost income
Dividend Stocks

Top Canadian Value Stocks I’d Buy for Dividend Growth and Appreciation

If you are looking for income and capital appreciation, here are three Canadian value stocks for a great total return…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Canadian Stock to Buy With $2,000 Right Now

The company’s powerful combination of growth, income, and value, positions it well to deliver solid returns, making it a smart…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

This 10.6 Percent Dividend Stock Pays Cash Every Single Month

Are you looking to invest for a rainy day? This 10.6% dividend stock pays cash every month, irrespective of the…

Read more »