Invest $583 Each Month to Create $2,103.50 in Passive Income in 2024 (2024)

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For major passive income in 2024, look to high dividend payers that have a strong future ahead of lowering interest rates and inflation.

Canadians looking for a little extra cash have come to the right place. With just $7,000, you can create a strong passive-income portfolio for this year. That’s right, in 2024.

The key will be to remember that you’re looking at two things here, and that’s passive income from returns and dividends. While dividends are certainly a secure way to see passive income come in, returns are also key. This is why, first, we’re going to look at a strong sector to consider for solid passive income in 2024.

Start building that portfolio

After years of backlogs and stalls and supply-chain disruptions, one of the best places that investors can get into right now is construction. This area of the market is going to go through a bull run very soon. While these stocks are still trading down a bit due to inflation and higher interest rates right now, analysts believe that will change quite soon.

In particular, there are a few that investors should keep their eyes on for passive income, according to analysts. Aecon Group (TSX:ARE), Bird Construction (TSX:BDT) and Brookfield Infrastructure Partners (TSX:BIP.UN) are all great options to consider.

All three of these companies have an attractive setup for 2024, with Brookfield perhaps being the one that should seriously outperform the rest of the market this year. This comes down to a compelling risk versus reward situation, which could produce double-digit funds from operations (FFO) per unit this year. The company has a large acquisition pipeline, with the cash on hand to take advantage of opportunities that arise.

So, let’s look at how investors can grab hold of this passive-income idea.

Consistency is key

If you’re hoping to create large amounts of passive income, then you need to invest on a consistent basis. Now, you can certainly start with the idea in this article of investing $7,000 in total, or approximately $583 per month. This would help you keep up with the contribution room in your Tax-Free Savings Account (TFSA).

However, look over your budget and figure out what you can actually afford. For example, you don’t want to go over budget and put yourself into credit card debt. That would increase your interest rate payments, which is certainly not the goal when it comes to investing.

So, whether you can afford $50 or $5,000, make sure you can pay that consistently month after month. And to ensure it happens, create automated payments so you don’t have to think about it!

What you could get

Let’s say you invested in BIP stock repeatedly throughout the year. We’re going to assume, for the case of this example, however, that you put $7,000 into BIP stock in January and see it rise again and again throughout the year. Eventually, it hits 52-week highs once more.

Right now, shares trade down 20% compared to those 52-week highs. This gives you a strong potential upside, along with a dividend yield of 4.98% as of writing. Here, then, is what you could achieve in passive income in 2024.

As you can see, you’ll have created $1,750 in returns as well as $353.50 in dividend income. That’s total passive income of $2,103.50 in 2024 alone!