Got $12,000 to Invest? Earn (at Least) $1,167 Every Year Without Lifting a Finger

Dividend investing can generate the desired yearly income with minimal capital and very little effort.

| More on:
profit rises over time

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Dividend investing is a proven strategy to generate extra, but steady, income streams. It requires minimal or little effort to produce “true” passive income through investing. The keys to success are time and money. If you have both, you can easily earn income through your investments. Many retirees make a living through dividends.

For Canadians, dividend earnings can be part of one’s overall retirement plan, complementing payouts from the Canada Pension Plan (OAS) and Old Age Security (OAS).

Investment option

You don’t need a lot of money to start dividend investing. Some TSX stocks trade for less than $10 per share but pay outsized dividends. Earning $2,100 every year without lifting a finger is possible if you invest in a smart stock.

I will use Fiera Capital (TSX:FSZ) as an example. The $947 million investment management firm provides customized multi-asset solutions (traditional and alternative asset classes) to institutional, retail and private wealth clients in North America, Europe and select Asian markets.

The stock is enticing for its affordability and lucrative quarterly payouts. At $8.84 per share, the dividend yield is an over-the-top 9.6%. FSZ has outperformed the TSX year-to-date, up 57.6% compared with the index’s return of 16%.

Created with Highcharts 11.4.3Fiera Capital PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Thriving business

Montreal-based Fiera Capital caters to clients in the public and private sectors, offering various investment strategies across asset classes, styles, and capitalization ranges. The primary goal is to help clients achieve long-term, sustainable growth and get the best return through its active management model.

The business is doing well amid a challenging economic environment, evidenced by the financial results in the first half of 2024. In the six months ended June 30, 2024, total revenues and net earnings increased 5% and 46.3% year-over-year to $332.9 million and $16.3 million. At the end of Q2 2024, the asset under management (AUM) is $158.9 billion.

Management established a comprehensive global cybersecurity program to make Fiera Capital’s risk management more robust. The program also bolsters security and data protection. An encouraging heading to the second half of 2024 is that its balanced investment strategies, medium and long-term, continue to outperform.

How much you earn in dividends by investing in Fiera Capital

Let’s assume the share price and dividend yield remain constant. If you invest $12,000 in Fiera, it would take about 6.25 years to earn $2,100 in yearly passive income, thanks to the powers of compounding and dividend reinvesting.

Here’s how it breaks down. ($12,000 / $8.84 = 1,357 shares)

CompanyRecent PriceSharesDividendPayout over 1 year
Fiera Capital$8.841,357$0.86$1,167

You’d end up with $1,167 in dividend income at the end of one year.

If you don’t pocket the dividends and instead reinvest them quarterly, your money would compound to $21,883.94 over 6.25 years. The new balance (money invested plus profit from dividends) would start generating $2,129.31 in dividends every year.

Should you invest $1,000 in Sun Life Financial right now?

Before you buy stock in Sun Life Financial, 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 Sun Life Financial 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

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Fiera Capital. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Why I’d Add This Top TSX Dividend Stock to My TFSA During the Current Dip

The market is full of volatility right now. Fortunately, this top TSX dividend trades at a discount and pays a…

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Invest $20,000 in 2 TSX Stocks for $1,421.09 in Passive Income

Are you looking to bump up your passive income? Then consider these two TSX stocks.

Read more »

A plant grows from coins.
Dividend Stocks

Where I’d Invest in Canadian Value Stocks for Long-Term Compounding

When markets plunge, Warren Buffett's wisdom shines: Get greedy when others are fearful. Canadian value stocks like Scotiabank await patient…

Read more »

analyze data
Dividend Stocks

How I’d Invest $28,000 in Canadian Natural Resource Stock to Amass Personal Wealth

Investing in TSX dividend stocks such as Enbridge can help you earn a passive-income stream in 2025.

Read more »

hand stacks coins
Dividend Stocks

Got $400? How I’d Start Building Income With 3 High-Yield Stocks for the Long Term

These high-yield dividend stocks have a solid payout history, making them compelling investments to generate passive income.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

I’d Put $15,000 in These 3 Dividend-Growth Champions for Increasing Income Potential

Want to offset some volatility? Here are three defensive dividend-growth champions that can generate a juicy yield right now.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Transform Your TFSA Into a Cash-Creating Machine With $7,000

Discover how the Tax-Free Savings Account can be your golden goose for generating cash without losing your investment.

Read more »

monthly desk calendar
Dividend Stocks

How I’d Invest $10,000 in Canadian Value Stocks for Monthly Dividend Income

A $10,000-diversified portfolio of value stocks focusing on dividend safety, yield, growth, and payment schedules can provide a reliable source…

Read more »