This bear market can be a blessing for value investors. There are so many great stocks to be found on the TSX today, it’s true. However, investing in individual stocks is expensive and can be quite risky. But what if you don’t want to miss out, but still want to make some passive income?
Get involved in infrastructure
Right now, I’d be interested in the infrastructure sector. Infrastructure is essential no matter what. Infrastructure companies power everything we depend on, including telephone lines, electricity assets, roads and sewers. And that means they’re also backed by the government, with projects that aren’t going to be cancelled on short-term notice.
But here’s the challenge. Many infrastructure companies rely on just this. One These areas. They might Just do energy, or roads, or telephones — you get the picture. How can you get in on this? You can also earn passive income via dividends and great returns.
You might consider an exchange-traded mutual fund
An exchange-traded mutual fund (ETF), is a great option. You can not only get a diverse set of infrastructure assets but you also have the option to invest in an ETF. Global Several others. That is why I’d recommend the BMO Global Infrastructure Index ETF (TSX:ZGI). The company is involved in major investments in everything, including pipeline companies such as EnbridgeFor more information on cellphone tower companies, click here Crown Castle InternationalAll of it. These stocks can be used to generate income, and there is no need for worry.
Why? Because you’re paying a small management fee to allow someone Other This sector is a mammoth and you don’t need to be worried about it. They’re the experts running this ETF with low volatility. A ETF that has seen shares grow by 10% and remain stable in this year’s fiscal year. The current dividend yield is 3.34%.
You can make it a thousand
With shares hovering around the same price they were at in the beginning of 2022, it’s a great time to buy the stock for a future boost. The shares have risen 176% in the last decade, with a compound annual rate (CAGR), of 10.69%.
But instead of looking at how long it will take you to make those returns, let’s see how much it would take to create $1,000 in passive income. To achieve this, let’s look at the dividend yield of 3.34%. That’s $1.32 per share annually. For $1,000 annually, this would require you to purchase 758 shares on the TSX at a cost $32,450.
You can not only look forward to the dividend income each year, but you also have guaranteed returns. The dividend has grown at a 9.35% compound annual growth rate over the past decade. You could easily build a $61,417 portfolio by simply reinvesting dividends. If you invested $32,450 today, you would see the same growth. That’s almost Double Your original investment all from one passive income-paying stock.