1 week Ago
Having $5,000 is a good start for investing in a passive income portfolio. The (TFSA) is a great opportunity to earn passive income without having to worry about income taxes. Because of higher interest rates since 2022, stock valuations are generally cheaper compared to the long-term normal valuation.
Therefore, it’s a good time to invest. To build a bulletproof monthly passive income portfolio, here are a few tips you should keep at the back of your mind. Look for businesses that make quality earnings or cash flows that are resilient and growing.
These businesses should also have solid balance sheets such that they’re not overly leveraged, as businesses could get into trouble if they have too much debt and high interest costs. Additionally, you would want to buy stocks at discounts to what they’re worth. The analyst consensus price target is a good gauge for initial research.
It may be obvious but you might consider stocks that pay sufficient yields. Lastly, spread your risk by diversifying your passive income portfolio to ensure you earn quality income from different industries and sectors. Dream Industrial REIT ( ) could be a good buy on the pullback.
The Canadian real estate investment trust (REIT) owns, operates, and manages a $7.9 billion diversified portfolio of industrial real estate across Canada and Europe. Its occupancy rate is high at about 96%, as expected of the defensive industrial real estate industry.
Furthermore, it maintains a solid balance sheet wit.
