For those looking to make some extra cash in 2024, I’ve got you. It continues to be a hard place to make money. And that’s especially true if you don’t have any money to invest in the first place.
So, let’s start from scratch, creating one easy passive-income stream and using it to invest in a top dividend stock.
Source: Getty Images
Rent what you can
I’ve discussed before the option of renting out storage space, whether it’s your attic, garage or shed. This is still a great option! So can renting your parking spot — again, something I’ve covered. However, there isn’t a limit to what you can rent out.
Recently, I needed a VHS player to play some old home videos (that’s a video tape player, for you Gen Zers). Instead of purchasing a new one, I started looking into renting one. This can be done with so much equipment, including perhaps those video game consoles you’ve held onto for an unreasonably long time.
There’s a bit of research to do just to figure out what to list items for. But there are also platforms to help you rent out the equipment. And it can be software, sure, but also equipment such as lawnmowers, steam cleaners, anything! And each can bring in hundreds per month.
Start investing
Once you’ve started creating income, invest it on a regular occurrence. That means creating automated contributions to your investment account. By doing so, this will allow you to invest without thinking about it so that you don’t spend it!
I would then consider first investing in an easy solution such as a Guaranteed Investment Certificate (GIC). There are some great options, including even a 30-day GIC at a 4.5% rate! This won’t last long, as rates will come down in the next year. So, take advantage of safe income while you can.
From there, look at a solid dividend stock, one that has a long history of dividend increases. One such option might be considering dividend stock Manulife Financial (TSX:MFC). MFC stock has a long history of dividend growth and returns. So, you can create incredible passive income. Let’s look at how.
For example
Let’s say you have $5,000 to invest at the end of the year. You’ll see that MFC stock is a great deal right now, trading at just 4.15 times earnings. Further, shares are up 17% in the last year. This could certainly occur again in the future.
Now, we’ll see what could happen should you see your investment increase by another 17%. Plus, let’s see how much you could bring in through dividend income.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | PORTFOLIO TOTAL |
| MFC – now | $29 | 172 | $1.46 | $251.12 | quarterly | $5,000 |
| MFC – highs | $34 | 172 | $1.46 | $251.12 | quarterly | $5,848 |
As you can see, in just a year, you’ll create new passive income. Then, you’ll create returns of $848 plus $251.12 in dividend income. That’s total passive income at $1,099.12! Altogether, you’ll have created an immense passive income opportunity — one that can last you the rest of your life.
