Invest $5,000 in This Dividend Stock for Steady Passive Income

If you put $5,000 into Propel Holdings (TSX: PRL) today, you could generate roughly $168 in annual passive income from dividends alone — a yield of about 3.4%, which is solid compared with broad market averages and provides consistent cash flow without selling shares.

Propel Holdings isn’t your typical utility or bank — it’s a fintech company focused on digital payments and financial-services infrastructure that has started returning profit to shareholders through a dividend. This combination of tech growth and income makes it appealing for investors who want income plus the potential for capital appreciation over the long term.

One advantage of targeting a $5,000 investment like this is simplicity: you’re not relying on complex option strategies or leveraged products to get paid — you’re owning a business that distributes part of its earnings directly to shareholders. This can fit nicely inside a TFSA or RRSP where dividend income and future capital gains aren’t taxed, increasing how much you keep over time.

This strategy works best if you’re long-term focused and not reliant on dividends as your sole source of income right now. Dividend yields can fluctuate with price and company decisions, so it’s wise to pair a position like this with other stocks or ETFs that offer diversification across sectors and payout schedules.

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Another practical advantage of owning a stock like Propel is that dividend income can be reinvested automatically through a DRIP (Dividend Reinvestment Plan), accelerating compounding and potentially growing your payout each year without additional cash contributions.

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Bottom line: A $5,000 position in Propel Holdings could produce around $168 annually in passive income, which can be especially efficient when held inside tax-advantaged accounts. For investors who value both income and growth prospects, this kind of dividend stock can be a useful building block in a broader, diversified income portfolio.