Yahoo Movies Earn $300 in Cash Every Month With This 1 Dividend Stock
Having a stream of passive income is the dream of every working individual. However, many passive income ventures are not as passive as they initially appear. Over time, you don’t have any other option but to put your time and effort to make those supposedly passive ventures work.
However, there is one option that is genuinely passive, i.e., investing in a dividend stock. If you can find a dividend stock that offers excellent and timely payouts while not slumping with its overall value, you are in for not just passive income, but also the growth of your initial investment.
Earn $300 every month with Suncor Energy stock
If you want to have $300 deposited in your account every month without doing a bit of work, you should invest $20,000 in Suncor Energy (TSX:SU)(NYSE:SU) stock.
The stock is currently trading at $40.17, with a dividend yield of 4.56% (per quarter) that roughly translates into a monthly dividend payment of $0.61.
To make $300 every month, you have to buy 492 shares of Suncor Energy that would roughly cost you $19,740. You can invest more in Suncor to increase the monthly dividend income.
However, I would advise against doing so. It is always better to keep your investment profile diversified and not go overboard with a single stock.
There is also a chance of overall growth
Investing in Suncor Energy couldn’t just open a window for monthly passive income. You can also see gains in your initial investment. This integrated energy company that explores and processes oil sand has registered 23.18% stock growth in the last five years.
If you had invested $20,000 in Suncor five years ago, your initial investment would have turned into $24,246, and you would have had the ability to use the dividend payouts as well.
Even though oil companies are always sensitive to the fluctuating crude price, the integrated model of Suncor makes it less vulnerable to those continuous ups and downs.
Suncor has the edge over traditional oil exploration companies because it also owns pipelines and refineries. When crude demand reduces, the refinery margins often increase, and this is where Suncor can offset the revenue dip happens due to dropped oil prices. Also, Suncor doesn’t experience capacity restraints like other oil producers, thanks to its own pipeline network.
Having a complete command over its supply-chain network allows Suncor to steer through bearish phases of the international oil market without recording a substantial drop in revenues.
Also, the acquisition of Petro-Canada has been ensuring steady cash flow for Suncor for the last ten years. The largest urban network of 1,750 filling stations makes sure the Suncor finances experience the least toll of fluctuating oil prices.
Conclusion
Suncor Energy stock is a good buy to have a passive income stream. It can help you in offsetting the effects of inflation and dealing with surprise expenses. Its robust business model has been driving the stock growth and can continue its run in the future as well.
In short, Encore Energy shares won’t get you a monthly income but can also grow your initial investment.
The post Earn $300 in Cash Every Month With This 1 Dividend Stock appeared first on The Motley Fool Canada.
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Fool contributor Jason Hoang has no position in any of the stocks mentioned.
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