Have you ever ever thought of making a reliable source of tax-free, monthly passive income in Canada? While most individuals consider earning passive income, most donât take the essential steps to achieve this. The steps should not as complicated as you may think. If you may have been contributing to your TFSA (Tax-Free Savings Account) for years, you may start generating tax-free passive income every month by investing even a small amount of savings in some quality Canadian dividend stocks.
In this text, Iâll speak about among the finest Canadian dividend stocks that may aid you earn $41 in passive income every month with an investment of just $6,500.
The most effective Canadian monthly dividend stocks
Whether you’re investing to generate passive income or growing money by the point you retire, it’s essential to all the time pick a fundamentally strong stock with a resilient business model and solid growth outlook. Keeping that in mind, Sienna Senior Living (TSX:SIA) may very well be an incredible dividend stock in Canada to take a position in immediately that may aid you earn a reliable monthly income for years.
This Markham-headquartered seniors living options provider currently has a market cap of $891.3 million. SIA stock trades at $12.22 per share with about 12.1% year-to-date gains after losing 27.5% of its value last yr. By comparison, the TSX Composite benchmark has risen by 6.3% up to now in 2023.
At this market price, Sienna Senior Living offers a sexy 7.7% annual dividend yield and distributes its dividend payouts on a monthly basis.
Is it a reliable stock to take a position in?
While Sienna is yet to announce its 2022 results later this month, its financial growth trends lately have still been impressive. Within the five years between 2016 and 2021, the companyâs total revenue jumped 34% from nearly $498 million to $668.5 million. Despite facing macroeconomic challenges and COVID-19-related headwinds lately, its adjusted earnings also grew positively by 15% during these five years, from $0.27 per share in 2016 to $0.31 per share in 2021.
One other key factor that makes it a reliable monthly Canadian dividend stock to purchase immediately is its strong long-term growth outlook. Because the elderly population within the country is predicted to surge significantly in the subsequent 20 years, the demand for seniorsâ living options, including long-term-care and retirement communities, is predicted to surge. This demand could help firms like Sienna Senior Living speed up financial growth in the long term, which should help its share prices appreciate.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND | TOTAL PAYOUT (Monthly) | DIVIDEND DISTRIBUTION FREQUENCY |
| Sienna Senior Living | $12.22 | 532 | $6,501 | $0.078 | $41.50 | Monthly |
| Prices as of Feb 9, 2023 |
Bottom line
Besides the expected appreciation within the share prices in the approaching years, Sienna also pays a monthly dividend of $0.078 per share. If you happen to invest roughly $6,500 out of your TFSA in its stock immediately, you may expect to earn $41.49 in tax-free monthly passive income from its dividends. That said, you must all the time attempt to diversify your portfolio to reduce your risk profile by including more such dividend stocks in it as an alternative of pouring a big sum of cash right into a single stock.
The post Got $6,500? Earn $41/Month Tax-Free Passive Income appeared first on The Motley Idiot Canada.
Free Dividend Stock Pick: 7.9% Yield and Monthly Payments
Canadaâs inflation rate has skyrocketed to six.9%, meaning youâre effectively losing money by investing in a GIC, or worse, leaving your money in a so-called âhigh interestâ savings account.
Thatâs why weâre alerting investors to a high-yield Canadian dividend stock that appears ridiculously low-cost immediately. Not only does it yield a whopping 7.9%, nevertheless it pays monthly!
Hereâs the very best part: Weâre 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 Canadian Stocks to Buy for Monthly Passive Income
- TFSA: Healthcare Dividend Stocks Are Perfect for Passive Income
- Monthly Passive Income: The Best Canadian Dividend Stock to Buy in 2023
- 2 of the Best TSX Stocks to Invest $1,000 in Right Now
- 2 Ultra-High-Yielding TSX Stocks to Buy With $1,000
The Motley Idiot has no position in any of the stocks mentioned. The Motley Idiot has a disclosure policy. Idiot contributor Jitendra Parashar has no position in any of the stocks mentioned.