One of the first things I’d do if I wanted to earn more passive income is choose a specific monthly target. Let’s say you want an extra $300. That might cover a utility bill, help pay for groceries, or give you a little more breathing room in your budget. And if that money comes from investments you already own rather than additional hours at work, it could feel like a pretty rewarding way to put your savings to work.
Of course, building a portfolio capable of generating $3,600 a year takes money, patience, and some careful stock selection.
In this article, I’ll highlight a top Canadian dividend stock and show how buying 1,225 shares could help you target $300 in average monthly passive income.
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Pembina Pipeline stock
If I were building a portfolio specifically to produce $3,600 a year, or $300 a month, in dividend income, Pembina Pipeline (TSX: PPL) would be an appealing stock given its current payout and long-term growth plans.
This Calgary-based energy infrastructure giant operates an extensive network of pipelines, natural gas processing facilities, storage assets, and export infrastructure connecting Canadian energy producers with domestic and international markets.
After rallying by 33% so far in 2026, PPL stock currently trades at $69.50 per share with a market cap of $40.4 billion. Despite this impressive rally, Pembina still offers an attractive annualized dividend yield of 4.3%, making it appealing to investors seeking both passive income and long-term capital appreciation potential.
A closer look at its latest earnings growth trends
Interestingly, Pembina’s recent financial performance gives investors more reasons to remain optimistic about its long-term growth potential. The company’s revenue in the third quarter jumped nearly 22% year-over-year (YoY) to $2.2 billion. As a result, its quarterly net profit nearly doubled to $570 million.
More importantly for dividend investors, Pembina’s adjusted cash flow from operating activities climbed nearly 16% YoY in the latest quarter. These improvements were driven mainly by stronger natural gas liquids margins, higher propane prices in Asian markets, and improved operational performance across its facilities.
While Pembina’s pipelines division saw adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) fall nearly 4% YoY due mainly to a new toll structure on its Alliance Pipeline, stronger contributions from its facilities and marketing businesses helped offset this weakness.
Why its financial growth could accelerate further
Besides its impressive financial growth, Pembina continues to invest in projects that could strengthen its future cash flows. For example, its recently completed Lator infrastructure is supported by long-term take-or-pay contracts, giving its revenue greater predictability.
Moreover, Pembina and its partners have approved the 932-megawatt Greenlight Electricity Centre, which could help the company benefit from growing electricity demand from data centres.
Meanwhile, construction of its Cedar liquefied natural gas project’s floating vessel was over 77% complete at the end of September. Pembina is also participating in the proposed Pacific Link pipeline project, which could eventually improve access to international markets for Canadian crude oil.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND YIELD | MONTHLY PAYOUT | DIVIDEND FREQUENCY |
| Pembina Pipeline | $69.50 | 1,225 | $85,138 | 4.3% | $305 | Monthly |
| Prices as of Nov 10, 2026 |
How many shares you need for $300 a month
Now that we’ve looked at Pembina’s strong fundamentals, let’s calculate how much you’d need to invest to generate $300 in average monthly passive income.
Pembina recently declared a quarterly dividend of $0.735 per share, translating into an annual payout of $2.94 per share if maintained. Based on this dividend rate, you’d need to buy about 1,225 PPL shares to earn at least $3,600 annually, equivalent to $300 a month on average.
At its current market price of $69.50 per share, buying these shares would require an investment of about $85,138. That said, instead of committing more than $85,000 to just a single stock, I’d consider building a diversified dividend portfolio that includes Pembina alongside other financially strong Canadian businesses. This approach could help reduce the risks associated with relying on one company for all your passive income.
