How $20,000 Across 4 TSX Stocks Could Deliver $1,000 in Passive Income

The TSX Index is packed full of dividend stocks across a wide array of industries and sectors. With just $20,000, you can build a diversified portfolio that can produce an attractive income stream. Here is a four-stock portfolio allocated evenly with $5,000 that could fetch you around $1,024 of dividend income every year.

A TSX REIT stock

The first TSX stock to buy is Dream Industrial Real Estate Investment Trust (TSX: DIR.UN). It yields 5.15% today. A $5,000 investment in Dream Industrial would buy you 368 units at today’s price of $13.58. That investment would earn $21.47 monthly, or $257.60 annualized.

Dream Industrial owns and manages 74.1 million square feet of multi-tenanted industrial properties across Canada, the United States, and Europe.

Right now, it sits with 96.8% occupancy. Most of its leases have annual contracted rental rate growth. Likewise, its average lease rate sits considerably below market, so it has natural organic growth in lease turnover or renewal.

This REIT still trades at a 19% discount to its private market value. Even after a recent run-up, it looks like attractive value today.

A Canadian oil stock

If you want exposure to energy, given the conflict in the Middle East, Surge Energy (TSX: SGY) is an interesting stock. It yields 5.04% today. A $5,000 investment would buy 484 shares at $10.31 per share. That investment would earn $20.82 monthly or $249.74 annualized.

With a market cap of only $1 billion, this is on the smaller spectrum for energy stocks. However, it’s a good way to get exposure to the sector and earn some regular income.

The company has decent reserves (16 years), high-return assets, and a focus on oil liquids (89% of production). Surge earns attractive free cash flows and has significant torque to stronger energy prices. With low debt, it can continue to reward shareholders in the form of an elevated dividend and share buybacks.

A TSX infrastructure stock

Gibson Energy (TSX: GEI) gives you exposure to the energy industry, but with less commodity exposure/risk. It yields 6.05% today. A $5,000 investment would buy 171 shares at today’s price of $29.07. You would earn $76.95 quarterly, or $307.80 annualized.

Gibson is a leading energy storage and export terminal provider. 75% of its income is from take-or-pay contracts, which help critically support its dividend. It is aiming for 7% annual earnings before interest, tax, depreciation, and amortization (EBITDA) growth over the coming five years.

For an outsized dividend and some decent growth, this is definitely one TSX dividend stock to consider.

A Canadian fintech stock

If you are looking for a TSX stock with a little more risk, but also more upside, you may want to add Propel Holdings (TSX: PRL). It yields 4.2% right now. A $5,000 investment would buy 235 shares at a price of $21.20 today. You would earn $52.88 per quarter or $211.52 per year.

Propel provides small, specialized loans for non-prime consumers. This is a risky segment. However, Propel uses a proprietary AI platform to prudently underwrite loans and manage risk. The company has been growing rapidly. However, the stock is down due to broader market worries around a slowing economy.

It is a riskier business, so you do need to be aware that this TSX stock is volatile. However, if Propel can continue to prove its smart growth strategy, there could be a nice stock rebound. You collect a growing dividend while you wait.