Business & Investment

Earn $ 78 in Passive Income Weekly in 2022

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How would you like to cover your grocery invoice with passive income in 2022? Assuming you spend an average of $ 70 to $ 80 a week on groceries, this goal seems achievable. Method is as follows.

Get the most out of TFSA in 2022

In 2022, the Duty Free Savings Account (TFSA) will be further boosted. Next year’s TFSA donation room will be $ 6,000. This means that the cumulative maximum contribution of qualified persons since 2009 will be up to $ 81,500 next year.

This is a significant amount to derive tax-exempt capital gains and dividend income. The next step is to find a solid dividend stock to generate reliable passive income.

Invest in solid dividend stocks

Nova Scotiabank (TSX: BNS)(NYSE: BNS) A simple example of a reliable passive income stock. Due to its strong growth, it has become a solid favorite in terms of risk-to-reward. Banks have opened up their own niche markets by doing business in markets that large companies have not yet leveraged.

Focus Latin America The outstanding performance of banks in the last quarter has been very successful. Over the past three months, Bank of Nova Scotia has increased adjusted profits by 74% year-on-year to reach $ 614 million. However, net income was $ 2,559 million, up 35% year-on-year, to $ 1.97 per share.

Growing dividend

Bank has Returned to pay dividends Following the release of the moratorium. Conversely, investors can increase their dividends by 11%. This corresponds to a dividend yield of 4.77%. Dividend yields can rise as interest rates rise, making it easier for banks to generate more free cash flow for distribution.

In addition, Scotiabank plans to return more value to shareholders through repurchases. It has already announced the repurchase of 24 million shares.

These buybacks and increased dividends should help generate sufficient passive income to cover grocery bills in 2022. Assuming a bank’s dividend yield increases to 5% in 2022, holding shares in the largest TFSA could generate $ 4,075 annually or $ 78 weekly in passive income.

If the bank’s business continues to grow at this pace, these dividends could also outweigh the rise in living expenses next year! That’s why this is such a powerful strategy for investors who want to keep their assets alive.

Conclusion

Living expenses are rising rapidly. In 2022, most families face the unfortunate prospect of paying more for groceries and necessities. Fortunately, there is a way to combat this inflation. TFSA’s Contribution Office will expand next year, with some dividend shares increasing dividends. Combining dividend growth stocks with maximized TFSA is a magical formula for tackling inflation.

The largest TFSA deployed in solid dividend stocks like Scotiabank could generate $ 78 a week in passive income in 2022.

Earn $ 78 in Passive Income Weekly in 2022

https://www.fool.ca/2021/12/22/earn-78-in-passive-income-every-week-in-2022/ Earn $ 78 in Passive Income Weekly in 2022

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