Four woman buddies withdrawing cash from bank card at ATMWritten by Daniel Da Costa at The Motley Fool CanadaUtilizing your Tax-Free Savings Account (TFSA) to purchase high Canadian dividend shares and construct a passive earnings stream is a wonderful means to put your hard-earned cash to work.If you possibly can make investments for the long term by constantly saving and including cash to your TFSA whereas letting it naturally compound, your portfolio will start to develop quickly.And the very best factor about beginning to make investments is which you can start with even simply a couple hundred {dollars}. Then as you save extra money and your investments develop in worth, you’ll begin to see your portfolio compound quickly.You can begin with a aim of incomes $100 a month of passive earnings, for instance, which might quickly develop to be rather more in no time.So in case you’re trying to put your hard-earned capital to work and construct a rising passive earnings stream, right here’s how one can begin by incomes $100 a week.How to earn $100 a weekEarning $100 a week or $5,200 a yr gained’t require a huge sum of money to start, however it would take some vital capital.For instance, when you’ve got been contributing to the TFSA because it was launched, you’d have $75,500 of contribution room. And an investor with a portfolio worth of roughly $75,000 would solely have to earn a portfolio yield of 6.9% to earn $5,200 a yr.Plus, in case you purchase high-quality dividend development shares, that quantity will probably be constantly rising.For instance, a inventory like Enbridge at present yields 6.6%. However, it has elevated its dividend for 26 consecutive years. So even in case you purchased high-quality shares like Enbridge which don’t fairly yield 6.9% however are constantly growing their payout, your funding would quickly be yielding rather more anyway.And in case you proceed to save your cash and reinvest all this passive earnings, you’ll begin to see your portfolio develop exponentially.Buying high dividend shares is a wonderful means to earn passive earningsOne of an important elements when it comes to constructing a passive earnings stream, as you possibly can think about, is choosing high-quality dividend shares.Story continuesDividend development shares are clearly probably the most excellent. But much more vital than a inventory that will increase its dividend is one with resilient earnings.It’s much better to discover high-quality firms which you can depend on for the long run. Because when firms are compelled to trim or droop their dividend altogether, not solely will your passive earnings take a hit, however so will the worth of your funding.So it’s essential that the dividend shares you do purchase are the very best of the very best companies that may contribute to a sturdy passive earnings stream for years to come.One of the very best shares to purchase nowSeveral Canadian dividend shares provide the standard that passive earnings seekers will probably be on the lookout for. One of the very best to purchase as we speak, although, is Algonquin Power and Utilities (TSX:AQN)(NYSE:AQN).Algonquin is a utility inventory with extremely resilient operations making it a really perfect purchase for dividend buyers. Not solely are its operations extremely sturdy, making the dividend ultra-safe, however they’re constantly increasing, which is why Algonquin is on the Canadian Dividend Aristocrats checklist.Algonquin affords water, electrical, and gasoline utilities to prospects throughout a number of totally different states in the U.S. Furthermore, it’s one of many high firms to purchase in order for you publicity to renewable power technology.Algonquin is a promising inventory for passive earnings seekers as a result of it’s extraordinarily protected and in addition affords years of long-term development potential. Its inexperienced power phase, which makes up about a third of its enterprise, affords a tonne of alternative for development. This is why Algonquin is such a high firm to take into account.So in case you’re a dividend investor trying to construct a rising passive earnings stream, Algonquin’s the most effective investments you may make as we speak.The publish Canadian Stocks: How to Earn $100 a Week in Passive Income 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 as we speak.Get Your Free Report TodayMore studyingFool contributor Daniel Da Costa owns shares of ALGONQUIN POWER AND UTILITIES CORP. and ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge. 2021
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How to Earn $100 a Week in Passive Income
