By The establishment of a consistent and sizable passive-income stream should be a goal for all long-term investors. Of course, there are many ways to make passive income. For example, a homeowner could establish a passive-income stream if they are able to collect rent from their property. Moreover, Canadians could theoretically make passive income if they write a successful e-book.
Today, I want to explore how to build a passive-income portfolio with some of the top dividend stocks on the TSX. In this scenario, I want to stash our dividend stocks in a Tax-Free Savings Account (TFSA). We will use about half of the total contribution room available: $44,000. Letâs dive in.
Hereâs the first stock Iâd suggest to start our passive-income portfolio
Timbercreek Financial (TSX:TF) is a Toronto-based mortgage investment company that provides shorter-duration structured financing solutions to commercial real estate investors in Canada. Shares of this dividend stock have increased 1.2% month over month as of close on Wednesday, June 21. The stock is up 3.1% so far in 2023.
This company released its first-quarter fiscal 2023 earnings on May 8. Timbercreek achieved record net investment income of $32.7 million — up 44% compared to the first quarter of fiscal 2022. Meanwhile, it posted record net income of $18.1 million. The company took advantage of improved interest income and its strong mortgage portfolio.
Shares of Timbercreek closed at $7.52 per share on June 21. For our hypothetical, we can snatch up 1,940 shares of Timbercreek for a purchase price of $14,588.80. The stock currently offers a monthly dividend of $0.058 per share. That represents a superb 9.1% yield. This purchase will allow us to generate monthly passive income of $112.52 going forward.
This REIT can generate big passive income going forward
SmartCentres REIT (TSX:SRU.UN) is a Toronto-based real estate investment trust (REIT) that focuses on acquiring value-oriented retail space across Canada. Its shares dripped 2.14% in yesterdayâs trading session. The stock has found itself in the red in the year-to-date period.
The REIT closed at $24.13 per share on Wednesday, June 21. For our hypothetical, we can snag 600 shares of SmartCentres REIT for a total price of $14,478. This stock last paid out a quarterly dividend of $0.154 per share, which represents a very tasty 7.6% yield. The purchase will let us churn out monthly passive income of $92.40 in our portfolio.
One more monthly dividend stock that can round out our portfolio
Sienna Senior Living (TSX:SIA) is a Markham-based company that provides senior living and long-term-care (LTC) services in Canada. This dividend stock has climbed marginally over the past month. Its shares have climbed 3.7% in the year-to-date period.
Shares of Sienna Senior Living closed at $11.45 on Wednesday, June 21. We can snatch up 1,300 shares of Sienna Senior Living to round out our passive-income portfolio at the beginning of the summer of 2023. The stock currently offers a monthly distribution of $0.078 per share, representing a monster 8.1% yield. This purchase will let us generate monthly passive income of $101.40.
Bottom line
COMPANY
RECENT PRICE
NUMBER OF SHARES
DIVIDEND
TOTAL PAYOUT
FREQUENCY
TF
$7.52
1,940
$0.058
$112.52
Monthly
SRU.UN
$24.13
600
$0.154
$92.40
Monthly
SIA
$11.45
1,300
$0.078
$101.40
Monthly
Our passive-income portfolio will be able to churn out monthly payouts of $306.32 with these purchases. That works out to an annual passive income payout of $3,675.84.
The post How to Build a Portfolio With Big Passive Income appeared first on The Motley Fool Canada.
Should You Invest $1,000 In Sienna Senior Living Inc.?
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Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in May 2023… and Sienna Senior Living Inc. wasn’t on the list.
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* Returns as of 5/24/23
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More reading
Passive Income Alert: 1 Attractive Investment With a Swelling Yield!
Passive Income: How Much Should You Invest to Earn $1,000 Every Month?
How to Build the Ultimate Passive-Income Portfolio With $25,000
4 Dividend Stocks to Generate Immediate Passive Income
3 TSX Stocks at 52-Week Lows I’d Buy Right Now
Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.
