Retirees: How to Make Over $95/Week in Passive Income TAX FREE!
The COVID-19 pandemic has inspired many Canadians to accelerate their retirement plans. Retirees experienced a renewed bull market after an early slump in 2020. However, the environment for savers has deteriorated significantly in 2022. Inflation has climbed to a 40-year high, making inflation difficult to sustain even for some of the highest-yielding dividend stocks.
Today I want to talk about what retirees can look like to generate more than $95 a week in passive income. Better yet, retirees who invest these shares in a Tax-Exempt Savings Account (TFSA) can expect tax-free passive income.
Retirees should target this nurturing stock for its dividend yield
Sienna senior housing (TSX:SIA) is a Markham-based company providing senior living and long-term care (LTC) services in Canada. Shares of this dividend stock are down 9.6% in 2022 as of late morning trading on Aug. 11. The stock is down 12% year over year.
This stock closed at $13.74 on Aug. 10. In our hypothesis, retirees can own 1,600 shares of Sienna for a purchase price of $21,984. The stock most recently paid a monthly dividend of $0.078 per share. That equates to a very tasty yield of 6.8%. This investment will allow us to generate a weekly passive income of $28.80 in our retirement portfolio.
This REIT can seriously boost your passive income portfolio
Real Estate Investment Trusts (REITs) have been a great source of income for Canadians over the past decade. Slate Food REIT (TSX:SGR.UN) provides access to grocery retailers across the United States. Given the sharp rise in food prices in North America in recent months, this was a worthwhile goal. Shares of this REIT are up 2.4% so far this year.
This REIT closed at $14.94 on Aug. 10. Retirees can snag 1,300 shares of Slate Grocery for $19,422. The REIT offers a monthly payout of $0.072 per share. That means retirees can now earn monthly passive income of $21.60 per share.
Here’s another dividend stock perfect for a retiree
Canadian energy stocks had a big run in the first half of 2022. Oil and gas prices started strong and exploded after Russia invaded Ukraine on February 24, 2022. Keyera (TSX:KEY) is a Calgary-based energy infrastructure company. This stock is up 12% so far in 2022.
Keyera closed Aug. 10 at $31.98 per share. We can snag 600 shares of Keyera for a total price of $19,188. This stock currently offers a monthly dividend of $0.16 per share. That’s a strong yield of 6%. Retirees can now expect a monthly passive income of $22.15 from this investment.
Another stock that can provide great passive income in the final months of 2022
Extendicare (TSX:EXE) is the fourth dividend stock that retirees can target to shore up their passive income portfolio. Based in Markham, this company provides care and services to seniors in Canada. Shares have risen slightly since the beginning of the year.
This stock closed at $7.46 per share on Aug. 10. For our last purchase, we can buy 2,800 shares of Extendicare for a total of $20,888. Extendicare offers a monthly payout of $0.04 per share, which translates to a tasty 6.4% yield. We can now earn $25.84 weekly passive income in our TFSA.
bottom line
These investments will allow retirees to earn monthly passive income of $98.39 per week in their TFSA in the future. That’s a solid rate in this inflationary climate.