FSZ:CC - How to Create $500 in Monthly Passive Income by 2030
Right now is a great time for investors. No really! There are some strong companies, especially dividend stocks, that can deliver enormous passive income. Even on a monthly basis, and even by 2030!
The key here is to remember that passive income is exactly that: income that’s created passively. So this doesn’t necessarily mean that you’re only looking at dividends here. It means you’re looking at all cash you’re receiving from your investments, without lifting a finger.
So today, I’m going to look at two of the best dividend stocks out there for those seeking this kind of passive income. By looking at expected returns as well as dividends, you can most certainly achieve $500 per month in passive income by 2030.
NorthWest
First off, we have NorthWest Healthcare Properties REIT ( TSX:NWH.UN ). This is a strong dividend stock that currently trades in value territory at just 8.2 times earnings. It offers an enormous 8.22% dividend yield as well, with shares down 27% year to date.
Now, if you’re going to consider this for passive income for 2030, it’s important to note that NorthWest stock hasn’t grown its dividend since coming on the market. That’s because it’s been investing in new properties to bring in higher returns. However, you can still earn a significant amount of monthly income from this stock.
If you were to aim for $250 in monthly passive income from both share appreciation and dividends by 2030, that means achieving $3,000 in returns . Here’s how that would play out based on historical growth.
| Year | Shares Owned | Annual Dividend Per Share | Annual Dividend | Compound Frequency | After DRIP Value | Annual Contribution | Year End Shares Owned | Year End Stock Price | New Balance |
|---|---|---|---|---|---|---|---|---|---|
| 1 | |||||||||
| 550.00 | |||||||||
| C$0.85 | |||||||||
| C$465.41 | |||||||||
| monthly | |||||||||
| C$5,091.10 | |||||||||
| C$0.00 | |||||||||
| 604.16 | |||||||||
| C$9.00 | |||||||||
| C$5,439.58 | |||||||||
| 2 | |||||||||
| 604.16 | |||||||||
| C$0.93 | |||||||||
| C$564.36 | |||||||||
| monthly | |||||||||
| C$6,031.57 | |||||||||
| C$0.00 | |||||||||
| 665.28 | |||||||||
| C$9.69 | |||||||||
| C$6,443.34 | |||||||||
| 3 | |||||||||
| 665.28 | |||||||||
| C$1.03 | |||||||||
| C$686.02 | |||||||||
| monthly | |||||||||
| C$7,163.85 | |||||||||
| C$0.00 | |||||||||
| 734.44 | |||||||||
| C$10.42 | |||||||||
| C$7,651.62 | |||||||||
| 4 | |||||||||
| 734.44 | |||||||||
| C$1.14 | |||||||||
| C$836.03 | |||||||||
| monthly | |||||||||
| C$8,530.81 | |||||||||
| C$0.00 | |||||||||
| 812.89 | |||||||||
| C$11.21 | |||||||||
| C$9,110.03 | |||||||||
| 5 | |||||||||
| 812.89 | |||||||||
| C$1.26 | |||||||||
| C$1,021.47 | |||||||||
| monthly | |||||||||
| C$10,185.67 | |||||||||
| C$0.00 | |||||||||
| 902.11 | |||||||||
| C$12.06 | |||||||||
| C$10,875.30 | |||||||||
| 6 | |||||||||
| 902.11 | |||||||||
| C$1.39 | |||||||||
| C$1,251.37 | |||||||||
| monthly | |||||||||
| C$12,194.81 | |||||||||
| C$0.00 | |||||||||
| 1003.86 | |||||||||
| C$12.97 | |||||||||
| C$13,018.07 | |||||||||
| 7 | |||||||||
| 1003.86 | |||||||||
| C$1.53 | |||||||||
| C$1,537.20 | |||||||||
| monthly | |||||||||
| C$14,641.25 | |||||||||
| C$0.00 | |||||||||
| 1120.22 | |||||||||
| C$13.95 | |||||||||
| C$15,626.72 | |||||||||
| 8 | |||||||||
| 1120.22 | |||||||||
| C$1.69 | |||||||||
| C$1,893.60 | |||||||||
| monthly | |||||||||
| C$17,629.12 | |||||||||
| C$0.00 | |||||||||
| 1253.67 | |||||||||
| C$15.01 | |||||||||
| C$18,812.06 |
Again, looking at those same columns, you can see the difference between 2029 and 2030 comes to $3,185.34. So again, that’s slightly higher than the $3,000 needed. In this case, it would only take 550 shares at $8.34 as of writing, for a total investment of $4,587. All without adding another penny.
The post How to Create $500 in Monthly Passive Income by 2030 appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends Fiera Capital and NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy .
2022