Who doesn’t like to earn without working? While you can work $40 hours a week at a young age, staying focused for so long gets difficult as you grow old. Also, you don’t want to spend your lifetime working. We can learn something from ants. They accumulate nectar during the spring and enjoy honey in the winter. While you are still earning a growing active income, you can invest money in stocks that can give you future passive income in your winter years.
A passive income stock you can buy without a doubt
The Canadian stock market has a rich collection of dividend aristocrats that have funded the retirement of many early investors.
Enbridge (TSX:ENB) has been paying dividends for over 69 years. Over these years, it underwent several economic crises and wars, perfecting its low-risk business model to tackle them effectively. And the outcome is 29 consecutive years of dividend growth. It is now transitioning from oil to natural gas and renewable energy as oil is a depleting industry.
Enbridge is acquiring three U.S. gas utilities and selling a 50% stake in the Alliance natural gas pipeline, Aux Sable processing plant, and NRGreen joint ventures to Pembina Pipeline for $3.1 billion. Between all these transitions, Enbridge is committed to growing its dividend by 3–5% annually.
Now that you know the qualities of this passive income stock, how you make the best of it is up to you. Here’s an investment strategy for Enbridge.
How to invest $250 a month for a $4,433 yearly passive income
Enbridge stock is a range-bound stock hovering between $40–$55. There are some outliers, but it has maintained this range since 2012. You can invest $250every month in Enbridge, irrespective of the price. The market volatility will help you reduce the cost per share over time.
The key to planning your investment is taking conservative estimates. If you underestimate and the stock over-delivers, it could give your financial plan some flexibility.
Year
Invested Amount
Enbridge Share count @$55/share
Enbridge Share count
Enbridge Dividend per share (3% CAGR)
Enbridge dividend
2024
$3,000
55
55.0
$3.65
$200.75
2025
$3,201
58
113
$3.76
$425.56
2026
$3,426
62
175
$3.87
$679.50
2027
$3,680
67
242
$3.99
$966.71
2028
$3,967
72
315
$4.11
$1,292.00
2029
$4,292
78
393
$4.23
$1,660.96
2030
$4,661
85
477
$4.36
$2,080.13
2031
$5,080
92
570
$4.49
$2,557.17
2032
$5,557
101
671
$4.62
$3,101.06
2033
$6,101
111
782
$4.76
$3,722.38
2034
$6,722
122
904
$4.91
$4,433.60
How to earn $4,433 in annual passive income
Assuming your average cost per share is $55, a $3,000 investment in a year ($250 x 12 months) can buy you 55 shares of Enbridge. If the company increases its 2024 dividend by 3%, you will receive $3.65 per share, accumulating $200 in passive income from 55 shares.
Instead of taking a payout, you can use that money to accumulate more shares of Enbridge. The company has paused its dividend reinvestment plan, but you can buy its shares manually in your Tax-Free Savings Account (TFSA) without having to pay tax on dividend income.
In 2025, your $3,000 investment plus $200 dividend income can buy you 58 Enbridge shares at $55 per share price. In 10 years, you can accumulate 904 shares that could pay an estimated dividend per share of $4.91. I have rounded off the share count as you cannot buy half a share. At the end of 2034, you could earn $4,433 in yearly passive income.
A bullish scenario
The above estimates are conservative. In the best-case scenario, Enbridge could grow its dividend by 5% in a few years, and your average cost per share could fall to $50 or $52 if you do some opportunistic buying in a bear market and lock in a higher yield.
As I said before, every stock has its features. It is up to you how you use it.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
