Canadians have been faced with rising expenses since the end of the COVID-19 pandemic. Inflation soared in late 2021 and the first half of 2022, spurring the Bank of Canada (BoC) to pursue its most aggressive interest rate-tightening policy in over 15 years.
This week, the BoC hiked the benchmark interest rate to 5%. That is the highest benchmark rate Canadians have lived with since the early 2000s. Today, I want to discuss how Canadians could look to churn out $1,500/month in passive income this year. How much will we need to commit to reach that lofty goal? Let’s jump in and target the perfect dividend stocks to make it happen.
According to a 2018 Statistics Canada survey, the average Canadian citizen in the 45-54 age range possesses total average savings of $564,600. Canadians in the 35-44 age range possess an average of $274,100. This includes savings in retirement savings accounts, TFSAs, and cash accounts. For this hypothetical, we are going to target $200,000 to make our aggressive passive income drive.
Here’s an undervalued REIT with a super monthly dividend yield
Northwest Healthcare REIT (TSX:NWH.UN) is a Toronto-based real estate investment trust (REIT) that owns and operates a global portfolio of high-quality healthcare real estate. Shares of this monthly dividend stock jumped 1.72% in the trading session on Wednesday, July 12. The stock has dropped significantly in the year-over-year period at the time of this writing.
Shares of this REIT closed at $6.49 per share on Wednesday, July 12. For our hypothetical, we can snatch up 10,800 shares of Northwest for a purchase price of $70,092. The REIT offers a monthly dividend of $0.067 per share. That represents a monster 12% yield. We can now generate monthly passive income of $723.60 going forward.
This dividend stock will help us reach our lofty passive-income goal
Extendicare (TSX:EXE) is a Markham-based company that provides care and services for seniors in Canada. This dividend stock has climbed marginally month over month as of close on July 12. Its shares are up 14% in the year-to-date period. Investors can see more of its recent performance with the interactive price chart below.
This dividend stock closed at $7.47 per share on July 12. We can purchase 8,000 shares of Extendicare for a total price of $59,760. Extendicare last paid out a monthly distribution of $0.04 per share, which represents a tasty 6.4% yield. That purchase means we can churn out monthly passive income of $320 from here on out.
One more monthly dividend stock I’d target to help build big passive income
Allied Properties REIT (TSX:AP.UN) is the third dividend stock and the second REIT I’d target for its passive income. Shares of this REIT rose 1.40% on July 12. This stock is also down sharply in the year-over-year period.
The REIT closed at $21.62 on Wednesday, July 12. For our final purchase, we can acquire 3,244 shares of Allied Properties REIT for $70,135.28. This REIT currently offers a monthly dividend of $0.15 per share, representing a great 8.3% yield. That investment means we can generate monthly passive income of $486.60 going forward.
Conclusion
COMPANY
RECENT PRICE
NUMBER OF SHARES
DIVIDEND
TOTAL PAYOUT
FREQUENCY
NWH.UN
$6.49
10,800
$0.067
$723.60
Monthly
EXE
$7.47
8,000
$0.04
$320
Monthly
AP.UN
$21.62
3,244
$0.15
$486.60
Monthly
These investments in top dividend stocks will allow us to churn out monthly passive income of $1,530.20. That works out to annual passive income of $18,362.40. While the investment is substantial, that annual income will go a long way to aiding in any increase in expenses you might experience in the current environment.
Before you consider Allied Properties Real Estate Investment Trust, you’ll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in June 2023… and Allied Properties Real Estate Investment Trust wasn’t on the list.
The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 28 percentage points. And right now, they think there are 5 stocks that are better buys.
Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
