Passive Income: How Much Do You Need to Invest to Make $444 Per Month

Investing for monthly passive income is a goal many aspire to achieve, and understanding the nuances can make the journey …

| More on:
Confused person shrugging

Source: Getty Images

Investing for monthly passive income is a goal many aspire to achieve, and understanding the nuances can make the journey smoother. Today, let’s look at what it takes to get into passive-income investing. And, of course, an investment that should go right along with it.

Getting started

One key consideration is the stability of the income source. Opting for investments with a consistent track record can provide peace of mind. Additionally, it’s essential to assess the company’s financial health. Reviewing recent earnings reports and financial statements offers insight into its profitability and sustainability.

Diversification is another crucial factor. Spreading investments across various sectors or companies can mitigate risks associated with market volatility. Moreover, understanding the industry’s future outlook is vital. Investing in sectors poised for growth can enhance the potential for sustained income. It’s also beneficial to consider the company’s commitment to innovation and expansion, as this can influence long-term profitability.

Evaluating dividend yields is important. Higher yields can lead to better passive income, but these should be sustainable. Lastly, staying informed about market trends and economic indicators can help in making timely and informed investment decisions.

Northland Power

Northland Power (TSX:NPI) stands out as a compelling option for those seeking monthly passive income. As of writing, NPI offers a forward annual dividend rate of $1.20 per share, yielding approximately 6.57%. This consistent dividend payment reflects the company’s commitment to returning value to shareholders.

In its third-quarter 2024 earnings report, Northland Power reported sales of $490.5 million, compared to $513.29 million in the same period the previous year. The net loss for the quarter was $178.16 million, a decline from a net income of $36.17 million in the prior year. This decrease was primarily due to challenges in its offshore wind facilities, including a significant cable outage at the Gemini project.

Despite these challenges, Northland Power has demonstrated resilience and adaptability. The passive-income stock has a strong investment-grade balance sheet with $1.1 billion of available liquidity to support future growth. Additionally, Northland Power has been expanding its development pipeline, with projects in Asia, Poland, and additional North Sea projects, indicating a commitment to future growth and diversification.

Bottom line

Northland Power’s diversified portfolio, including offshore wind, onshore renewables, and efficient natural gas facilities, provides a balanced revenue stream. This diversification helps mitigate risks associated with reliance on a single energy source. Furthermore, the company’s commitment to expanding its renewable energy footprint aligns with global trends towards sustainable energy solutions. So, how much would it take to create $444 in passive income each year?

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
NPI$18.25370$1.20$444monthly$6,752.50

As you can see, it would take $6,752.50 to create that amount. So, while all investments carry inherent risks, Northland Power’s consistent dividend payments, strategic growth initiatives, and strong position in the renewable energy sector make it a noteworthy consideration for investors seeking monthly passive income.

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 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

stock research, analyze data
Dividend Stocks

Generate $500 in Tax-Free Monthly Income With This Easy Strategy

Passive-income investing is easy thanks to this fund's steady $0.10-per-share monthly payout.

Read more »

how to save money
Dividend Stocks

Got $2,000? 5 Telecom Stocks to Buy and Hold Forever

The discount and recovery potential are reasons enough to consider telecom stocks in Canada right now. The fact you can…

Read more »

Dividend Stocks

The Underperformers: Canadian Stocks That Missed the Mark in 2024

I'm bullish on one of these dividend stocks but bearish on the other.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

2 TSX Stocks to Invest $20,000 and Create $2,597.60 in Passive Income

Need income? We got you, with these two top dividend stocks due for more solid growth and passive income.

Read more »

money cash dividends
Dividend Stocks

Trump Tariffs: 1 TSX Stock That Could Take a Huge Hit

This TSX stock hopes to improve shareholder returns in 2025 but could take a huge hit instead from Trump’s tariffs.

Read more »

A lake in the shape of a solar, wind and energy storage system in the middle of a lush forest as a metaphor for the concept of clean and organic renewable energy.
Dividend Stocks

Best Stock to Buy Right Now: Brookfield Renewable vs TransAlta Corporation?

Brookfield Renewable Partners (TSX:BEP.UN) is a massive player in renewables.

Read more »

Dividend Stocks

1 Canadian Stock Down 26% That’s Pure Long-Term Perfection

Canadian National Railway (TSX:CNR) is a prime example of a Dividend Aristocrat that merits consideration.

Read more »

oil and gas pipeline
Dividend Stocks

Better Midstream Stock: Pembina Pipeline vs Keyera?

Rising energy demand is setting up midstream stocks for good times, with generous dividends for shareholders.

Read more »