The fickle nature of the global economy has once again showcased the importance of creating multiple income streams. Companies are laying off employees across sectors due to an extremely challenging macro environment. The triple whammy of inflation, interest rate hikes, and supply chain disruptions are likely to impact both revenue and profit margins for corporates in the near term, driving down the valuations of several TSX stocks.
However, the pullback in share prices has also increased the dividend yields of TSX stocks since 2022. As forward dividend yields and stock prices have an inverse relationship, you can buy shares of undervalued companies and benefit from tasty dividend yields. Investing in quality dividend stocks can help you generate a passive stream of income and benefit from capital gains over the long term.
Letâs see how much you need to invest in this TSX stock to earn $1,000 in annual dividend income.
Diversified Royalty stock
A Canada-based multi-royalty ...
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I often like to recommend to investors starting out that they don’t put everything they have towards stocks. Even when it comes to their investment income. Instead, I recommend creating a budget, and based on your budget and income, you can usually put 5% to 10% aside per month.
Given that as of 2021, Statistics Canada says the average Canadian salary came in at about $60,000, that would mean putting aside about $3,000 per year. And in many cases, that’s $3,000 which continues to sit there, uninvested.
So today, I have a recommendation. While they’re down, I would say that tech stocks offer some solid long-term hold options. If you know where to look. And luckily for you, I do!
Open Text
If you’re going to find tech stocks to hold, they have to stand the test of time. One of those companies is Open Text (TSX:OTEX). The enterprise software company has been around for decades. It’s one of the tech stocks that also doesn’t depend on one source of revenue. Instead, it creates par...
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