Selecting a good mix of investments today can help generate a juicy passive income flow that can last for decades. Picking the right stocks can provide more than $600 every month.
Fortunately, generating more than $600 every month is easier than you may think. Here’s a trio of options that can help kickstart your passive-income portfolio.
Image source: Getty Images
Start with a big bank with a bigger income
Canada’s big banks are often regarded as some of the best long-term investments on the market, and there’s a good reason for that view.
Big bank stocks can provide a juicy income. They also boast significant growth prospects internationally as well as a growing and stable revenue stream in Canada.
Bank of Nova Scotia (TSX: BNS) is the big bank that can provide more than $600 every month in passive income.
Scotiabank isn’t the largest or oldest of Canada’s big banks, but it is the most international of the big banks. That includes a significant interest in Latin American markets as well as a growing interest in the U.S. market.
That interest coincides with Scotiabank taking a 14.9% stake in U.S.-based KeyCorp earlier this year.
Turning to income, Scotiabank boasts a juicy 5.36% yield paid out quarterly. This means that investors looking to earn more than $600 every month can make good progress on that goal.
Add a supercharged yield trading at a discount
Most investors are aware of BCE (TSX: BCE). BCE is one of the largest telecoms in Canada, with an enviable network that stretches from coast to coast.
That network allows BCE to provide its core subscription-based services to customers across the country. That includes wireless, wired, internet, and TV services, all of which carry significant defensive appeal.
Despite that appeal, BCE has seen its stock tumble in recent years. The stock trades down a whopping 41% over the trailing two years. Much of that decline was initially attributed to the impact of rising interest rates, as telecoms like BCE rely on debt to fund capital projects.
As the cost of that debt increased, BCE was forced to scale back its plans and enter into an aggressive cost-cutting mode. The bulk of those cuts were announced earlier this year, with BCE shedding a considerable part of its media portfolio and reducing staff.
That’s all part of a larger restructuring afoot at the telecom, which has seen the company sell off its share in MLSE as well as acquire U.S.-based Ziply for US$3.6 billion.
Turning to dividends, BCE has paid out dividends for over a century without fail. The drop in BCE’s share price has also sent that crazy dividend yield into the stratosphere.
As of the time of writing, BCE offers an insane 10.65% yield. BCE recently announced a pause on increases to that dividend, but the current yield and long-term potential make this a must-have stock.
Finish with an energy infrastructure giant
Another great stock to consider is Enbridge (TSX: ENB). The energy infrastructure behemoth has its tentacles in multiple segments of the energy sector. This includes a growing renewable energy portfolio and its natural gas utility business.
The company is best known for its lucrative pipeline business, hauling massive amounts of crude and natural gas daily across North America. The sheer volume hauled makes the stock a top defensive pick while providing a secure and recurring revenue stream.
That revenue stream allows the company to pay out a juicy quarterly dividend. As of the time of writing, the dividend carries a yield of 6.09%, making it one of the better-paying options on the market.
Enbridge has also given investors handsome increases to that dividend going back three decades.
Earn more than $600 every month
The trio of stocks mentioned above can help investors easily earn more than $600 every month. Here’s a look at how that breaks down:
| Company | Recent Price | No. of Shares | Dividend | Total Payout | Frequency |
| Bank of Nova Scotia | $79.09 | 442 | $4.24 | $1,874.08 156.17 / month | Quarterly |
| BCE | $37.97 | 921 | $3.99 | $3,674.79 $306.23 /month | Quarterly |
| Enbridge | $59.91 | 584 | $3.66 | $2,137.44 $178.12 / month | Quarterly |
