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TFSA Investors: Earn $200 per Month in Passive Income and $3660 in Returns by 2023

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IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT

The Tax-Free Savings Account (TFSA) recently added a new amount of contribution room for investors to consider. That $6,500 can be used for anything, but this year, many are considering using it for passive income through dividends.

But I encourage investors to think beyond just dividends. After all, what good is a dividend stock for passive income if you’re losing share value?

With that in mind, there is certainly one passive-income stock I would urge TFSA investors to consider for monthly income in 2023.

SmartCentres REIT

SmartCentres REIT (TSX:SRU.UN) is a strong option for TFSA investors these days. Many might still consider it one of those retail real estate investment trusts (REIT). Certainly it is, creating long-standing partnerships with companies like Wal-Mart, which doesn’t hurt.

But it’s also grown beyond that. SmartCentres REIT is now expanding primarily into two areas. The first is industrial properties, allowing it to bring in rents from storage buildings that could connect to its retail locations. The other is retirement spaces, which continues to be in high demand with an aging baby boomer population.

With occupancy actually rising, and earnings coming in above estimates, SmartCentres REIT is a strong choice as a passive-income stock. So, let’s see how to get you that passive income today.

Bring in income

SmartCentres REIT is also a great choice, because it has a solid dividend, at a great price. As of writing, the passive-income stock trades at just 4.92 times earnings. On top of this, you can lock up a whopping 6.74% dividend yield at these rates!

The company also has a long history of growth we can look back on to see how those shares will perform in the future. Over the last 20 years, shares are up 1,000%, for a compound annual growth rate (CAGR) of 12.74%. As for its dividend, it’s risen by a CAGR of 1.8% in the last decade.

However, shares are currently down 6.22%. That means you can lock up this strong stock while it’s down, despite solid performance. Now, let’s get to the good part.

Create $200 in passive income

Let’s get down to it. If you’re an investor wanting to bring in $200 per month in passive income, that would mean you want to create $1,200 in annual passive income at these rates. We’ve seen that shares have come down. So, let’s say those shares climb back up to previous 52-week highs of about $34.

Here’s what that would get you if you were to purchase right now.

COMPANY PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY TOTAL INVESTMENT
SRU.UN: today $27.84 649 $1.85 $1,200 annually $18,068.16
SRU.UN: highs $33.48 649 $1.85 $1,200 annually $21,728.52

As you can see, should shares climb back to 52-week highs, you’re looking at a future investment of $21,728.52! That’s returns of $3,660.36, and $4,860.36 including dividends. So, if you’re looking for a solid future investment with tons in monthly passive income, I’d highly recommend SmartCentres REIT.

The post TFSA Investors: Make $200 Monthly in Passive Income and $3,660 in Returns in 2023 appeared first on The Motley Fool Canada.

Free Dividend Stock Pick: 7.9% Yield and Monthly Payments

Canada’s inflation rate has skyrocketed to 6.9%, meaning you’re effectively losing money by investing in a GIC, or worse, leaving your money in a so-called “high interest” savings account.

That’s why we’re alerting investors to a high-yield Canadian dividend stock that looks ridiculously cheap right now. Not only does it yield a whopping 7.9%, but it pays monthly!

Here’s the best part: We’re giving this dividend pick away for FREE today.

Claim your free dividend stock pick
* Percentages as of 11/29/22

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More reading

  • 2 Stocks to Buy in 2023 for TFSA Passive Income
  • 3 Top Canadian Stocks to Buy for Monthly Passive Income
  • Want $500 in Passive Income Each Month? Buy 3,244 Shares of This TSX Stock
  • TFSA: Invest $1,000 and Get $7,200/Year in Passive Income 
  • Passive Income Power Play: 2 TSX Stocks to Boost Your Income in a Recession

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust and Walmart. The Motley Fool has a disclosure policy.

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By: Amy Legate-Wolfe
Title: TFSA Investors: Make $200 Monthly in Passive Income and $3,660 in Returns in 2023
Sourced From: www.fool.ca/2023/01/16/tfsa-investors-make-200-monthly-in-passive-income-and-3660-in-returns-in-2023/
Published Date: Mon, 16 Jan 2023 09:00:00 +0000

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