TFSA Passive Income Boost from Canadian Dividend Stocks
A Tax-Free Savings Account (TFSA) can generate passive income without requiring much effort. Jitendra Parashar, a contributor to The Motley Fool Canada, suggests investing $14,000 in two Canadian dividend stocks to achieve this goal.
The first stock is Peyto Exploration & Development (TSX:PEY), which produces natural gas and natural gas liquids in Alberta. At its current price of $25.52 per share, the company offers a 5.8% annualized dividend yield. Its recent quarterly production rose 10% year-over-year to 147,513 barrels of oil equivalent per day.
The second stock is Brookfield Infrastructure Partners (TSX:BIP.UN), which owns utilities, transport, midstream, and data assets across several global markets. At its current price of $56.66 per unit, the company provides a 4.5% annualized distribution yield. In its latest quarter ended in March, Brookfield Infrastructure's funds from operations rose 10% year-over-year to US$709 million.
Together, these two stocks could generate around $711 annually in passive income, assuming both companies continue raising their payouts and the distributions are reinvested instead of being spent.