Invest $1,000 Per Month to Create $130 in Passive Income in 2026

When it comes to picking great investments to generate a passive income, there is no shortage of options on the TSX. If you are serious about starting to invest in the stock market and want to focus on passive income, dividend investing can be a great approach.

When it comes to dividend investing, few investments can rival the blue-chip stocks you can find among Canada’s Big Six Banks. Canada’s biggest bank stocks have been around for over a century and a half, with some nearing two centuries of being around. The companies are well-capitalized and can generate recurring revenue reliably.

Besides delivering solid long-term growth through capital gains, Canadian banks like the Bank of Nova Scotia (TSX:BNS) can be a generous passive income stream for investors with a long-term view.

Why invest in Scotiabank?

Also called Scotiabank, the Bank of Nova Scotia is one of the oldest banks in the country. It might not be the largest or most recognized among the Big Bank Stocks, but it has the most significant international presence among its closest Canadian peers. Scotiabank has significant domestic operations, but it also boasts an increasing amount of revenue from international markets. While not a guarantee, the growth rates in various international markets can be greater than in more mature markets like Canada.

Greater growth in cash flows means that Scotiabank can invest in further expansions and fund growing dividend payouts to investors. In recent years, Scotiabank has shifted its focus away from several developing markets, especially in Latin America. While the markets boast high-growth potential, the bank wants to emphasize a defensive appeal to counter global market volatility.

What about the income?

Scotiabank can be an excellent investment for dividend-seeking Canadians. The company has paid quarterly dividends without fail for over 190 years. It means that the bank has paid investors through two World Wars, several health crises, and multiple global economic downturns. Investing $1,000 per month can help you build up your holdings in the stock to turn its quarterly dividends into a substantial amount in passive income. Buying and holding its shares in a Tax-Free Savings Account (TFSA) means you can enjoy the dividends without incurring taxes on it.

Foolish takeaway

Let’s take the recent share price of Scotiabank stock at $100.17, and how investing $1,000 per month will translate its $1.10 in quarterly dividends ($4.40 annually) into annual income, after reaching a total of $12,000 invested in the stock over 12 months.

MonthInvestmentTotal Invested in StockJanuary$1,000$1,000February$1,000$2,000March$1,000$3,000April$1,000$4,000May$1,000$5,000June$1,000$6,000July$1,000$7,000August$1,000$8,000September$1,000$9,000October$1,000$10,000November$1,000$11,000December$1,000$12,000Total Annual Payout$523.60

The post Invest $1,000 Per Month to Create $130 in Passive Income in 2026 appeared first on The Motley Fool Canada.

Should you invest $1,000 in Bank Of Nova Scotia right now?

Before you buy stock in Bank Of Nova Scotia, consider this:

The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now… and Bank Of Nova Scotia wasn’t one of them. The 15 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,105.89!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 95%* – a market-crushing outperformance compared to 72%* for the S&P/TSX Composite Index. Don’t miss out on our top 15 list, available when you join Stock Advisor Canada.

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* Returns as of November 17th, 2025

More reading

• Brace Yourself: My Wildest Stock Market Predictions for 2026
• 2 Unstoppable Dividend Stocks to Buy if There’s a Stock Market Sell-Off
• TFSA Must-Haves: 2 Top Dividend Stocks for Canadians to Buy and Hold Forever
• Bank of Nova Scotia Stock Tops $100: How High Could it Go?
• 2025’s Top Canadian Dividend Stocks to Hold Into 2026

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Bank of Nova Scotia. The Motley Fool has a disclosure policy.