You are currently viewing Passive Income: Earn $484 Per Month The Foolproof Way – The Motley Fool Canada

Passive Income: Earn $484 Per Month The Foolproof Way – The Motley Fool Canada

Which service is right for you?
Passive income stocks can offer you plenty of additional revenue to supplement your active income.
Image source: Getty Images
Making money while sleeping is a goal many of us think of achieving when we begin stock market investing. Making the right investments right now can help you find ways to make money and continue growing your wealth easily.
Dividend investing is one of the best methods to create a passive income stream that can keep lining your account balance with cash just for owning shares of a company. Finding the right dividend stocks that offer you returns through capital gains and reliable shareholder dividends can be challenging, but it is not impossible.
Suppose you have some money set aside as investment capital for a dividend income portfolio. In that case, you might want to take a closer look at these two dividend stocks to earn a substantial amount in dividends alone.
Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is Canada’s fifth-largest bank by market capitalization, and it is often considered the riskiest investment among its peers due to its significant exposure to the domestic housing market. There might be concerns about home prices crashing and mortgage defaults coming in droves to impact banks. However, a complete meltdown might be out of the question.
Higher interest rates tend to benefit banks in the long run. It allows financial institutions to generate better net interest margins on the loans they provide. Fiscal 2021 was a strong year for CIBC, and its management recently raised its shareholder dividends by 15 cents. At writing, CIBC stock is trading for $145.76 per share, and it boasts a juicy 4.42% dividend yield.
Enbridge Inc. (TSX:ENB)(NYSE:ENB) stock could be an ideal stock to own for investors seeking high-yielding but reliable income-generating stocks. Enbridge has a reputation for providing reliable shareholder dividends, but the company has had its fair share of challenges over the years. At writing, Enbridge stock is trading for $47.44 per share, and it boasts a massive 7.21% dividend yield.
Typically, such high dividend yields should be a cause for concern because it might be difficult for most companies to sustain such high yields. However, Enbridge is a business with more than enough cash flow to cover its dividend yield. The company’s largely contracted or regulated operations in North America see to its cash flow. Enbridge is also gearing up for a greener future by transitioning to renewable energy.
Investing $50,000 in CIBC stock and Enbridge stock each at current levels means that you could generate $2,210 and $3,605 per year, respectively, through shareholder dividends alone. The $5,815 you earn per year translates to $484 in passive income each month through shareholder dividends from the two stocks in your portfolio. This is consistent income because the cash is not going anywhere.
If you keep reinvesting the shareholder dividends through a dividend reinvestment plan, you can buy more shares to generate even more dividend income through the TSX stocks for your long-term financial goals.
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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge.
December 24, 2021 | Christopher Liew, CFA
The pandemic isn’t over and many businesses worry about a return to lockdowns due to the new, highly-transmissible COVID variant.…
Read more »
December 24, 2021 | Adam Othman
The stock market has been under considerable pressure in recent weeks. The advent of two more variants of the COVID-19-causing…
Read more »
December 24, 2021 | Tony Dong
It’s Christmas Eve today! In the interest of not taking up your time today, so you can spend more of…
Read more »
December 24, 2021 | Andrew Button
For retirees, dividend stocks are the way to go. Offering stable, predictable cash payments, they provide the one investment characteristic…
Read more »
December 24, 2021 | Christopher Liew, CFA
Canada’s Big Five banks have been paying dividends for more than 100 years, but none of them qualify as Dividend…
Read more »
December 23, 2021 | Rajiv Nanjapla
Amid rising hopes that the economic impact from the Omicron variant would not be as intense as earlier estimated, the…
Read more »
December 23, 2021 | Kay Ng
Let’s admit it. Nothing beats earning passive income. One easy way you can build passive income from the comfort of…
Read more »
December 23, 2021 | Andrew Walker
Canadian savers are searching for top dividend stocks to put in their self-directed TFSA and RRSP accounts. CIBC CIBC (TSX:CM)(NYSE:CM)…
Read more »
View All
Returns since inception, October 2013. Current as of December 24, 2021.
© 2021 The Motley Fool Canada, ULC. All rights reserved.


Laisser un commentaire