Passive Income: How Much Do You Need to Invest to Make $500 Per Month?

Passive-income investors looking to earn $500 per month should focus on Canadian stocks with attractive yields and sustainable payouts. Focusing on dividend stocks with strong fundamentals is essential, as these businesses are more likely to maintain consistent distributions over the long term.

With this framework in mind, let’s look at how much capital is required to produce $500 in monthly income with these two monthly dividend-paying stocks.

Passive-income stock #1: Dream Industrial REIT

Investors seeking monthly passive income could consider Dream Industrial REIT (TSX:DIR.UN). The real estate investment trust (REIT) has a diversified portfolio of industrial real estate assets. It owns and operates urban logistics and distribution facilities across North America and Europe, providing geographic diversification and supporting stable earnings.

The REIT also maintains disciplined tenant diversification, with no single industry contributing more than 18% of total annualized gross rent. This reduces vulnerability to sector-specific downturns and strengthens the predictability of its income stream.

Operationally, the REIT benefits from sustained leasing momentum. Strong demand for logistics space is translating into high occupancy levels and positive rental spreads. These dynamics support growth in net operating income (NOI) and funds from operations (FFO), which are the primary drivers of distribution sustainability.

Dream Industrial currently pays a monthly distribution of $0.058 per unit, yielding approximately 5.6% annually. In 2025, the REIT reported FFO of $1.05 per unit, representing a 5% year-over-year increase. Operational metrics remained solid, with in-place rents rising 8% and same-property NOI growing about 6%.

Leasing conditions improved in the latter half of the year, with occupancy reaching 96.2% and tenant retention holding near 70%, indicating consistent demand. In addition to its core portfolio, the REIT is expanding ancillary revenue streams, including solar initiatives and its private capital platform, which are contributing meaningfully to FFO.

Management continues to focus on improving free cash flow and lowering the payout ratio, while reallocating capital toward higher-quality urban industrial assets and development opportunities aligned with long-term demand trends. Overall, Dream Industrial is a compelling stock to earn steady passive income.

Passive-income stock #2: Whitecap Resources

Whitecap Resources (TSX:WCP) is a top stock to generate monthly passive income. The oil and gas producer currently pays a monthly dividend of $0.061 per share, yielding 4.9% at a recent closing price of $15.

It has regularly paid dividends for years. Over the period from January 2013 through December 2025, Whitecap distributed roughly $3 billion in dividends. This highlights the resilience of its cash flow across commodity cycles and management’s ongoing commitment to shareholder returns.

Whitecap continues to perform well and is expanding its production. Moreover, the acquisition of Veren has further increased its scale and broadened its operational footprint. This expanded asset base strengthens access to premium markets and enables Whitecap to pursue larger, long-term marketing agreements, thereby improving pricing diversification.

Whitecap targets a base dividend payout ratio of 20% to 25%, which is sustainable and provides ample capital to pursue growth initiatives. Management also anticipates modest annual dividend growth of 1% to 3% in the coming years.

Overall, its diversified assets, focus on cost optimization, and extensive drilling inventory position Whitecap to generate consistent cash flow and continue enhancing shareholder value.

How much to invest for $500 per month in passive income

Dream Industrial REIT and Whitecap Resources are dependable stocks for generating monthly passive income. An investment of $115,200, split equally between these two TSX stocks, would generate $500 in monthly passive income.

CompanyRecent PriceNumber of SharesDividendTotal PayoutFrequencyDream Industrial REIT$12.554,589$0.058$266.16MonthlyWhitecap Resources$153,840$0.061$234.24MonthlyPrice as of 03/19/2026

The post Passive Income: How Much Do You Need to Invest to Make $500 Per Month? appeared first on The Motley Fool Canada.

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More reading

• Build a Cash-Gushing Passive-Income Portfolio With $14,000
• Today’s Perfect TFSA Stock: 5% Monthly Income
• 5 Canadian Stocks I’d Buy for ‘Instant Income’
• This TSX Dividend Stock Could Surprise in 2026
• TFSA: Invest $20,000 in These 4 Stocks and Get $1,100 in Passive Income

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Dream Industrial Real Estate Investment Trust and Whitecap Resources. The Motley Fool has a disclosure policy.