TFSA Passive Income: Earn $11.11 Every Single Day

TFSA investors can earn more than $10 per day by purchasing high-yield dividend stocks and holding them in their investment accounts.

| More on:

Canadians can earn passive income during this inflationary period. One of the simplest ways is through dividend investing. If your finances allow, and you own a Tax-Free Savings Account (TFSA), potential income should be higher, because all earnings within the account are tax free.

TFSA users can maximize their 2022 limits or available contribution rooms by purchasing high-yield dividend stocks to hold in their investment accounts. Those with a $50,000 investment in a stock that pays an 8% dividend are earning $333.33 per month, or $11.11 every single day.

Fiera Capital (TSX:FSZ) and True North Commercial (TSX:TNT.UN) are among the generous dividend payers today. Since their yields are above 8%, your passive should be more. There are inherent risks to the respective businesses, so make sure you understand them before investing.

Global vision

Fiera Capital is an independent asset management firm with a growing global presence. The $1.06 billion company caters to institutional, financial intermediary, and private wealth clients in North America, Europe, and key Asian markets. It offers customized and multi-asset solutions across public and private market asset classes.

As of year-end 2021, the level of assets under management (AUM) was $188.3 billion — a 3.5% increase from December 31, 2020. The Public Markets segment (91.5%) has a higher percentage weight compared with the Private Markets (8.5%). Fiera delivered strong results in 2021, notwithstanding the uncertain economic backdrop.

Jean Guy Desjardins, Fiera’s global president and CEO, said, “Our strong 2021 financial performance is a direct result of Fiera Capital’s active investment management in creating value for clients during the last two years.” In 2021, total revenues grew 7.87% to $749.87 million versus 2020.

Fiera’s net earnings ballooned 3,680% year over year to $76.62 million, while adjusted EBITDA increased 18.11%. In Q4 2021, net earnings grew 1,050.42% to $36.61 million versus Q4 2020. According to Desjardins, Fiera’s mission going forward is to be efficient allocators of capital.

Given its global vision and focus on generating organic growth, management commits to create sustainable prosperity for all stakeholders. The non-bank stock trades at only $10.63 per share (+3.4% year to date) and pays an attractive 8.09% dividend.

Stable contractual cash flows

True North Commercial in the real estate sector is pure dividend play with its 8.8% dividend. At $6.88 per share, TFSA investors can partake of the ultra-high dividend yield. The $631.17 real estate investment trust (REIT) that owns and operates 46 commercial properties in Canada has a distinct advantage.

About 76% of the REIT’s revenues from government (35%) and credit-rated (41%) tenants. The Federal Government of Canada is among its anchor tenants. Other high-profile lessees include four provincial governments, TD Insurance, and General Motors Canada.

While revenue (-0.65%) in 2021 dropped slightly versus 2020, net income and comprehensive income rose 28.31% to $51 million. As of year-end 2021, the occupancy rate was a high 96% and the weighted average lease term is 4.4 years. Notably, True North collected 99.5% of contractual rent in Q4 2021.

The compelling reasons to invest in True North are its resilient, growing portfolio and stable contractual cash flows. According to management, the REIT has an exciting future ahead, given the pipeline of off-market acquisition opportunities.

Lessen the impact of inflation      

TFSA investors can choose between Fiera Capital and True North Commercial to earn passive income. Owning either stock can help lessen the impact of inflation.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

Dividend Stocks

The 2 Best Canadian Blue-Chip Stocks to Buy Now

Blue-chip stocks can be some of the best stocks to have in any portfolio. But when they're trending upwards, investors…

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These top dividends stocks have consistently paid and increased their dividends. Further, this trend will continue.

Read more »

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »

how to save money
Dividend Stocks

The Smartest Dividend Stocks to Buy With $200 Right Now

These smartest dividend stocks can consistently pay and increase their dividends in the coming years, irrespective of the macro uncertainty.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

3 Utility Stocks That Are Smart Buys for Canadians in November

These utility stocks benefit from regulated businesses and generate predictable cash flows that support higher dividend payouts.

Read more »

Start line on the highway
Dividend Stocks

Invest $10,000 in This Dividend Stock for $600 in Passive Income

Do you want to generate passive income? Forget the rental unit! This option will save you the mortgage yet still…

Read more »

Senior uses a laptop computer
Dividend Stocks

1 Reliable Dividend Stock for the Ultimate Retirement Income Stream

TD Bank (TSX:TD) shares are way too cheap with way too swollen a yield for retirees to pass up right…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

Is Brookfield Infrastructure Partners a Buy for its 4.75% Yield?

Brookfield Infrastructure Partners (BIP) has a 4.75% dividend yield. Is it worth it?

Read more »