Home » Investing » The Top Stocks to Buy With $500 Right Now for Passive Income in 2024
These passive-income stocks offer dividends and returns, with shares already climbing as I write this!
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Amy Legate-Wolfe
Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances.
Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities.
Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. Amy’s work can be found regularly on the Financial Post and MoneyWise Canada.
When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog Finley, and travel.
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Latest posts by Amy Legate-Wolfe (see all)
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| More on: GSYNXR.UN
The new year is on the way, and now is a great time to use up the rest of your contribution room in your Tax-Free Savings Account (TFSA). That’s thousands of dollars that can be used to set you up for 2024 and a large amount of passive income. However, even if you want to just put $500 towards a few stocks, that will certainly be enough.
Today, we’re going to look at the top stocks that investors should consider with just $500 on hand. Those that could create huge passive income in 2024 through both dividends and returns. So, here are the ones I would consider first.
goeasy
Shares of goeasy (TSX:GSY) have been climbing higher and higher on the back of strong earnings. In fact, the company has produced record-setting earnings through loan originations for the company — all at a time when, really, it shouldn’t be doing well!
Higher interest rates should have led to lower loans on hand, but that hasn’t been the case. So, when interest rates come down, goeasy stock should have even more growth coming its way. This is why it should certainly be one of the stocks to consider with just $500 for passive income.
If you put that $500 towards goeasy stock, here is what you could get from that investment, with shares reaching 52-week highs in 2024.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | PORTFOLIO TOTAL |
| GSY – now | $158 | 3 | $3.84 | $11.52 | quarterly | $474 |
| GSY – highs | $164 | 3 | $3.84 | $11.52 | quarterly | $492 |
Just $500 could be used to invest $474 in goeasy stock. That would bring in $11.52 in dividend income, as well as $18 in returns. Yet over time, goeasy stock has even more room to grow.
Nexus stock
Not willing to wait? Then I would Nexus Industrial REIT (TSX:NXR.UN). Nexus stock is a strong option as a real estate investment trust (REIT) that focuses on industrial properties. These properties will be here no matter what goes on in the world and continue to be in high demand to ship, receive, and assemble the products we need.
Nexus stock offers a great deal! Shares trade at just 4.53 times earnings, offering up a juicy 8.04% dividend yield. While shares are down 16% in the last year, they’ve risen 33% since bottoming out back in October. So, I would certainly use it while you can and put that $500 to work.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | PORTFOLIO TOTAL |
| NXR.UN – now | $8 | 63 | $0.64 | $40.32 | monthly | $500 |
| NXR.UN – highs | $11.25 | 63 | $0.64 | $40.32 | monthly | $708.75 |
As you can see, you definitely get more passive income this way. However, there is a bit more risk, as Nexus stock hasn’t been around as long and doesn’t have as much of a recovery. Even so, you’ll gain $40.32 in dividends and $208.75 in returns for passive income in 2024 once reaching 52-week highs! This will certainly allow you to leave 2023 on a high note.
