Passive-Income Power: How to Churn Out Over $95/Week in This Bear Market
The S&P/TSX Composite Index fell back into correction territory to open the week on Monday, June 13. Investors have some options in this choppy market. For one, they can hunt for discounts and look to capitalize off the inevitable rebound. However, they also have the option to take the passive income route. In this article, I want to discuss how you can generate over $95/week in tax-free passive income in this bear market. We will be using all our Tax-Free Savings Account (TFSA) room in this scenario. Letâs jump in.
Hereâs a green energy stock perfect for your passive-income portfolio
TransAlta Renewables (TSX:RNW) is a Calgary-based company that develops, owns, and operates renewable power-generation facilities. The renewable energy space has captured a better-than-expected market share over the past decade. Shares of TransAlta Renewables have dropped 8.3% in 2022 as of close on June 13. The stock is down 15% from the previous year.
This company unveiled its first-quarter 2022 results on May 4. It posted adjusted EBITDA growth of 13% to $139 million. Meanwhile, free cash flow increased 9% to $108 million.
The stock closed at $17.16 on June 13. In our hypothetical, weâll snatch up 1,580 shares of TransAlta for a total purchase of $27,112. This stock offers a monthly distribution of $0.078 per share, which represents a 5.4% yield. That purchase means we will generate weekly tax-free passive income of $28.44.
This energy stock is designed to consistently reward shareholders
Freehold Royalties (TSX:FRU) is the second stock Iâd snatch up to bolster your passive-income portfolio in the middle of June. This Calgary-based oil and gas royalty company owns working interests in energy and potash properties in North America. Freehold stock is up 29% in 2022, as the energy sector has enjoyed a big boom so far this year.
In Q1 2022, funds from operations climbed 122% to $71.9 million. Freehold has maintained a very solid balance sheet and should be a prime target for income-oriented investors. It closed at $15.57 on June 13. For our scenario, we will snatch up 1,745 shares of the energy stock for a total purchase price of $27,169. Freehold last paid out a monthly dividend of $0.08 per share. That represents a 6.1% yield. These holdings will see us churn out weekly passive income of $32.21.
One more stock to bolster your passive-income power
Extendicare (TSX:EXE) is the third dividend stock Iâd look to snag to round out our passive-income portfolio. This Markham-based company provides care and services to seniors across Canada. Its shares have dropped 7% so far in 2022.
Investors should seek exposure to stocks that are well positioned to benefit from Canadaâs aging population. Shares of Extendicare closed at $6.90 per share on June 13. In our hypothetical, weâll snatch up 3,940 shares of this dividend stock for a purchase price of $27,186. Extendicare currently offers a monthly distribution of $0.04 per share, representing a tasty 6.9% yield. Those holdings mean we can churn out weekly passive income of $36.36 going forward.
These holdings will allow us to churn out tax-free passive income of $97.01 per week. That is a nice tax-free payout, especially as investors combat the current bout of volatility.
The post Passive-Income Power: How to Churn Out Over $95/Week in This Bear Market appeared first on The Motley Fool Canada.
Before you consider Extendicare, we think youâll want to hear this.
Our nearly S&P/TSX market doubling* Stock Advisor Canada team just released their top 10 starter stocks for 2022 that we believe could supercharge any portfolio.
Want to see if Extendicare made our list? Get started with Stock Advisor Canada today to receive all 10 of our starter stocks, a fully stocked treasure trove of industry reports, two brand-new stock recommendations every month, and much more.
See the 10 Stocks
* Returns as of 4/14/22
setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
2 of the Best Canadian Dividend Stocks That Pay Cash Every Month
3 Top TSX Stocks Under $20 a Share
Looking for a Diversified Portfolio? Start Here
Retirees: 2 Oversold TSX Dividend Stocks to Buy for Monthly TFSA Passive Income
Get a Monthly Dividend Cheque: Buy These 5 TSX Stocks Now
Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends FREEHOLD ROYALTIES LTD.
18 total views, 2 views today