How Putting $50,000 Into This High-Yield Dividend Stock

Uncover the secrets to passive income through reliable high-yield dividend yielding stocks and a diversified portfolio. The post How Putting $50,000 Into This High-Yield Dividend Stock Could Generate $3,550 in Annual Passive Income appeared first on The Motley Fool Canada .

Who doesnâ€TMt like certainty? Invest X amount and get Y amount in so many years. This certainty is what a Guaranteed Investment Certificate (GIC) provides.

The best GIC rates available are 3.6% interest for one year and 4.1% for five years. The problem with stocks is that there is no certainty. While you may invest $50,000, you can only make an estimate and not be assured of passive income .

However, for a little risk, the premium some high-yield dividend stocks offer makes them worth considering. A high-yield dividend stock that could generate $3,550 in annual passive income Slate Grocery REIT ( TSX:SGR.UN ) offers a 7% annual dividend yield. Its

Source and reference

source of dividends is rent from grocers in the United States. The REIT’s two largest tenants are Walmart and Kroger , accounting for 18.4% of rental income. The slow development of new retail properties keeps supply tight, allowing Slate to grow rent. However, one risk, or rather advantage, with Slate Grocery is foreign exchange. It pays dividends in US dollars, and Canadians can receive dividends in Canadian dollars. Thus, the REIT converts currencies on its end and transfers Canadian dollars. Slate Grocery REIT is trading at $17.34 per unit. If you invest $50,000 today, you can buy 2,883 units, which could pay $3,546 in annual dividends. This amount could fluctuate by 1%, but you can make a rough estimate of $3,500 in passive income. Stock Purchase price Investment Amount Number of shares purchased Dividend per share Annual Dividend Amount SGR.UN $17.34 $50,000 2883 $1.23...

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