Invest $10,000 in These Dividend Stocks for $410 in Passive Income

If you want to get an extra boost in passive income, dividend stocks are a great place to look. Dividend stocks are liquid, so you don’t need a large upfront investment. You can buy and sell as many shares as you like. Likewise, if you suddenly need to raise cash, you can easily sell your shares.

Unlike other passive income sources (like a small business or real estate), you don’t have to do any management of the business. If you pick the right companies, you get access to great managers and high-quality assets/products/services.

By buying the right dividend stocks, you can also enjoy passive income growth. As a business grows, so too does its dividend. You get to see your annual income rise if you hold on for long enough.

If you are looking to build a passive income portfolio, here are four quick stock ideas that would earn $410 annually with $10,000 invested.  

A real estate stock for growing dividends

Granite REIT (TSX: GRT.UN) operates an institutional quality portfolio of logistics, manufacturing, and industrial properties across Canada, the U.S., and Europe. Its properties help form the infrastructure for commerce across the continents.

Granite has long-term leases (over six years on average), good 94%-plus occupancy, and high-grade tenants (like Magna and Amazon.com). The company is seeing high-single-digit growth from a large development pipeline and strong rental rate growth. It has grown its distribution for 14 consecutive years, and this should continue going forward.

It yields 4.4% right now. Put $2,500 into this stock and you would earn $9.08 monthly or $108.90 annualized.

A top dividend growth stock

Another strong dividend stock is Canadian Natural Resources (TSX: CNQ). Despite being in the cyclical energy industry, this stock has delivered 25 years of consecutive dividend increases. In that time, its dividend has grown by a 21% compounded annual growth rate (CAGR).

The key to its success is a low cost of production, high quality energy assets, operational efficiency, a highly invested management team, and decades of energy reserves.

Canadian Natural stock yields 4.6%. Put $2,500 into this dividend stock and you would earn $28.36 quarterly or $113.41 annualized.

A stock for growth and dividends

Speaking about dividend-growth, goeasy (TSX: GSY) has provided shareholders an excellent return. Its dividend has increased for 10 consecutive years. The most amazing part is that its dividend has increased by a 29% CAGR in that time!

goeasy provides consumer loans to the sub-prime market segment. While this is a riskier segment, it uses smart underwriting and elevated interest rates to offset the risk. This company has been rapidly growing and it consistently earns 20%-plus returns on equity.

While it only yields 2.7% today, this stock provides investors both growth and dividend income. $2,500 invested in goeasy stock would earn $16.38 quarterly or $65.52 annually.

A REIT for value and income

First Capital REIT (TSX: FCR.UN) is another real estate stock that is both a dividend income and value play. It is one of Canada’s largest retail landlords with a mix of urban-focused properties across the country.

The REIT has very well-located assets with high-quality, essential service tenants (like grocery stores, pharmacies, banks, dollar stores, and liquor stores). Its great locations have supported strong occupancy and rent growth. Despite these advantages, this dividend stock trades at a big discount to its private market value.

First Capital yields 4.9%. Invest $2,500 in this stock and earn $10.15 monthly or $121.82 annually.