How to Create $1,340 in Passive Income in 2024

Want some extra cash to get you through 2024? Start planning now and you could make immense income for the next year and beyond!

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The new year is upon us, so it’s a great time to start thinking about what kind of changes you want to make for 2024. However, you should avoid those resolutions that are eventually going to go out the window. Instead, come up with some changes that can help you long term.

That’s why today, I’m going to focus on creating passive income in 2024. There’s an easy way to make sure this resolution sticks, and by 2025, you’ll be rolling in cash.

First, make it automatic

If you’re going to make some changes when it comes to creating passive income, then the best place to start is by making automated contributions. This can be done through your banking institution, where you set up payments that go directly to your investment portfolio month after month, or even bi-weekly along with your paycheque.

The idea is to see these payments like a bill payment. A bill payment toward your future! Now, of course, you’re going to need a budget to do this. And honestly, even if you made one last year, there have been so many changes this year. So I would look at the last three months and come up with your new budget based on that.

Then, once you go through your essentials, put everything you can reasonably put aside towards your investments. Then, make it tax free.

Put it in a TFSA

The best way to create long-term passive income is by investing in your Tax-Free Savings Account (TFSA). While other savings accounts are great, the TFSA in my opinion is the best. You can create returns and dividends that aren’t taxed by the government. You have plenty of contribution room. And if something happens and you need it all out at once, there will be no questions asked.

The key, of course, is making sure that you stay within your contribution limit. If you were 18 at least in 2009, then as of January 1, 2024 you’ll have a total of $95,000 to invest! That’s plenty of room to create a massive amount of passive income.

Then, you’ll need to find a strong investment. One that is due to rise, and keep on rising for as long as you hold it. Plus, create some strong dividend income along the way. Here’s one to consider.

Loblaw stock

If you’re looking for growth and dividends, Loblaw Companies (TSX:L) is a great choice right now. Loblaw stock has been climbing higher as the market continues to recover. Further, the stock managed to remain strong through a pandemic and even an economic downturn.

Now, it’s looking to recover even more. Shares are back where they were at this time last year, though rising 11% in the last two months alone. There is likely to be even more growth as the economy starts to stabilize, and that could lead to potential dividend increases as well.

For now, Loblaw stock offers a dividend yield at 1.46% as of writing. It trades at a reasonable 19.2 times earnings as well. So let’s say you were to put $15,000 into Loblaw stock and see it continue climbing. Here is how much passive income you could create in 2024.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYPORTFOLIO TOTAL
L – now$121124$1.78$220.72quarterly$15,000
L – highs$130124$1.78$220.72quarterly$16,120

In just 2024, you could create passive income through $1,120 in returns and $220.72 in dividends. That’s a total of $1,340.72! Reinvest it, and you’ll be looking at a lifetime of strong passive income.

Should you invest $1,000 in Loblaw Companies right now?

Before you buy stock in Loblaw Companies, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Loblaw Companies wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,058.57!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*.

See the Top Stocks * Returns as of 2/20/25

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 Amy Legate-Wolfe has positions in Loblaw Companies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

exchange traded funds
Dividend Stocks

Looking for Market Defence? Canadian Dividend ETFs Are a One-Stop Solution

These two BMO ETFs feature above-average dividends and a defensive portfolio

Read more »

Hourglass and stock price chart
Dividend Stocks

Stock Market Correction? These 2 Canadian Dividend Stocks Are a Steal

Dividend stocks can be a saviour, but can also lead to large portfolio gains when bought during stock market corrections.

Read more »

A bull and bear face off.
Dividend Stocks

U.S. Tech Stocks Are in Correction Territory… History Says This Happens Next

Canadian stocks like Alimentation Couche-Tard Inc (TSX:ATD) are currently better positioned than U.S. tech.

Read more »

Man in fedora smiles into camera
Dividend Stocks

Retirees: Is Fortis Stock a Risky Buy?

Fortis (TSX:FTS) is often regarded as a great long-term holding for income-seeking investors. But is this stock now a risky…

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

Buy the Dip: 3 TSX Stocks Trading at Bargain Prices Today

These three TSX stocks might be near 52-week lows, but don't let that stop you from making a long-term investment.

Read more »

Caution, careful
Dividend Stocks

Sell-Off Alert: Why These TSX Blue-Chip Stocks Look Undervalued Now

These TSX stocks look mighty valuable right now, and come with outlooks that make each prime for the picking.

Read more »

dividends can compound over time
Dividend Stocks

Want a 6% Yield? 3 TSX Stocks to Buy Today

These TSX stocks offer yield of over 6% and are well-positioned to sustain their payouts and maintain consistent dividend payments.

Read more »

clock time
Dividend Stocks

10 Years From Now, You’ll Be Glad You Bought These Magnificent TSX Dividend Stocks 

A decade from now, these 2 dividend stocks could give you strong returns through dividends or capital appreciation, or both.

Read more »