Written by Daniel Da Costa at The Motley Fool CanadaWhen it comes to constructing a passive earnings stream, traders have to steadiness, yield, threat, and dividend development.Not each inventory will pay you upwards of 7%. At the identical time, in the event you’re wanting to earn passive earnings at this time, you may’t solely purchase dividend development shares with yields of round 1%.And every time you purchase a dividend inventory, you want to make sure that the dividend is secure and the corporate’s operations are sturdy.Another tip for traders, particularly in the event you’re wanting to develop your passive earnings stream quickly, is using the Tax-Free Savings Account (TFSA). This manner, you may maintain all that cash you earn and proceed to reinvest it, which can assist it to compound quickly. So even in the event you’re making $250 a month at this time, that may develop to $500 a month ahead of you’d suppose.And $250 a month is a nice goal to begin for traders. For instance, in case you have a portfolio worth of $60,000, you could possibly earn $250 a month with a portfolio yield of simply 5%.So you should buy a number of totally different Canadian dividend shares, and so long as your common portfolio yield is 5% or increased, you’ll earn a pretty quantity of passive earnings.However a lot cash you will have, the earlier you make investments it, the earlier you may start to compound it and develop it quickly. So in the event you’re searching for some prime dividend shares to purchase at this time, listed here are two of one of the best.A prime restaurant royalty stockIf you’re wanting to construct a rising passive earnings stream, one of one of the best dividend shares to think about has to be A&W Revenue Royalties (TSX:AW.UN).A&W has been a quickly rising burger chain, and traders have been constantly rewarded. All of the recognition of A&W’s merchandise have seen the quantity of areas skyrocket. In addition, for years, same-store gross sales have grown at unbelievable charges as properly. This has led to quite a few dividend will increase for traders lately.Of course, A&W was impacted by the pandemic. However, it has recovered fairly quickly and has already elevated its dividend twice for the reason that pandemic. The payout now sits at 94% of what it was earlier than the pandemic, exhibiting it’s nearly utterly recovered.Story continuesSo in the event you’re a passive earnings seeker searching for a prime dividend inventory to purchase, A&W is a best choice. Its enterprise is sort of resilient, and it’s confirmed it will possibly develop quickly.A prime Canadian telecom inventory for passive earningsIn addition to A&W, one other high-quality Canadian inventory I’d think about at this time is BCE (TSX:BCE)(NYSE:BCE). BCE is the proper inventory to purchase in the event you’re wanting to construct a passive earnings stream.Not solely is it one of the most important and most necessary corporations in Canada, however the inventory additionally yields an unbelievable 5.4% at this time, and on condition that BCE is a Dividend Aristocrat, the corporate will increase its dividend annually.Because telecom shares have enormous boundaries to entry and tonnes of long-life belongings, they possess the flexibility to generate a tonne of money move.Of course, proper now, constructing out 5G know-how is essential, however that ought to solely lead to extra gross sales development down the street. And through the years, telecommunications solely proceed to change into extra necessary.So whereas BCE is already an unbelievable inventory with a tonne of recurring income, it ought to solely proceed to develop its operations.Therefore, in the event you’re searching for a high-quality dividend inventory to assist construct a rising passive earnings stream, it’s one of one of the best in Canada to think about.The submit Passive Income: How to Make $250 a Month of Tax-Free Earnings appeared first on The Motley Fool Canada.5 Canadian Growth Stocks Under $5Limited Time Only: Get 5 of Our Top Growth Stocks for FREE.We are freely giving a FREE copy of our “5 Small-Cap Canadian Growth Stocks Under $5” report. These are 5 Canadian shares that we predict are screaming buys at this time.Get Your Free Report TodayMore studyingFool contributor Daniel Da Costa owns shares of BCE INC. The Motley Fool recommends A&W REVENUE ROYALTIES INCOME FUND. 2021
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How to Make $250 a Month of Tax-Free Earnings
