Companies like the Chemtrade Logistics Income Fund (TSX:CHE. UN) dividend stocks like this can play an important role in your passive income portfolio.
Published by: Ambrose O’Callaghan; Published January 18, 2022
Last week, I looked at how Canadians earn weekly income through passive income strategies. Today, I want to look at three other income-generating assets that can help investors earn over $17 a day. Even better, if you keep these vehicles in your Tax-Free Savings Account (TFSA), you can produce that income tax-free. In our hypothesis, we will use the cumulative TFSA room of $81,500 that is now available in 2022. Let’s get started.
This REIT with a huge dividend is ideal for passive income portfolios
True North REIT (TSX:TNT. UN) is the first real estate investment trust (REIT) I want to zero in today. It operates a range of commercial properties in urban areas of Canada. REITs are an excellent source of passive income. As of the close of trading on January 17, True North’s stock price is up 15% year-over-year.
On the same day, the REIT closed at $7.35. In our hypothesis, we can add 3,700 shares of True North REIT stock to the purchase price of $27,195. The REIT offers a monthly dividend of $0.05 per share. At the time of writing, this represents an 8% yield.
With this investment, we can generate $185 per month in TFSA. For a year, this equates to $6 per day tax-free. This is a great start to our passive income portfolio.
This is an income fund you can rely on in a TFSA
Chemtrade Logistics (TSX:CHE. UN) is a Toronto-based income fund that provides industrial chemicals and services in Canada, the United States, and South America. Its stock price is up 11% from the previous year.
In the third quarter of 2021, the company’s cash flow from operating activities decreased by $10.4 million to $81.4 million year-over-year. However, distributable cash per unit is still higher than in 2020. Passive income investors should be encouraged by their solid cash position.
The stock closed at $7.70 on January 17. Let’s say we’re going to snap up 3,525 shares of Chemtrade. The total purchase price is $27,142.50. Chemtrade also offers a monthly dividend of $0.05 per share. This represents a yield of 7.7%. The shares we purchased allowed us to generate a monthly dividend income of $176.25. Additionally, this equates to $5.79 per day in tax-free passive income.
Another REIT that can power your passive income
Slate Office REIT (TSX:SOT. UN) is another REIT worth targeting for passive income investors. The Toronto-based REIT offers investments in North American office real estate. REITs increased by 18% year-over-year.
The REIT closed at $5.12 on January 17. For our last purchase, we will be snapping up 5,300 shares of Slate Office stock at a purchase price of $27,136. Meanwhile, it last paid a monthly distribution of $0.033 per share. This represents a massive yield of 7.8%.
The shares we acquire will make our TFSA $174.90 per month. This equates to $5.75 per day in tax-free income.
The bottom line
These investments will allow passive income investors to generate a total of $17.54 in tax-free income per day. Also, this equates to earning more than $6,400 per year.
Should You Invest $1,000 in the Chemtrade Logistics Income Fund?
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