So, you have $8,000 to put to work and your goal is to build a portfolio that will provide you with a reliable stream of passive income down the road. In that case, it makes a lot of sense to focus on companies that have strong underlying businesses, a track record of consistent performance, and solid potential to grow and generate profits in the years to come. There are three companies listed right here on the TSX that look like interesting options for Canadian investors. Let’s look at West Fraser Timber (TSX:WFG), Winpak (TSX:WPK), and CCL Industries (TSX:CCL.B).
West Fraser
First off, we have West Fraser. Now, this is a pretty big player in the wood products industry, and it’s not just in Canada. The passive-income stock has operations all across North America and even over in Europe. As of writing, the total value of outstanding shares on the market was sitting at around $8 billion. The past year or so has had its ups and downs for the forestry sector. However, West Fraser has shown the ability to weather the storms.
In fact, in the last three months of 2024, it actually managed to turn a profit of $0.08 per share. What’s particularly interesting is that this was quite a bit better than what the financial analysts were expecting. Instead, they had actually predicted that the company would report a loss of $0.55 per share for that period.
Looking ahead, the analysts who follow the company seem to be quite optimistic about West Fraser’s prospects. It’s forecasting a significant jump in the company’s earnings per share of around 69% over the next year. This suggests that there’s potential for the company’s profitability to improve quite a bit in the near future.
Winpak
Next up on our list is Winpak. The passive-income stock might not be a household name, but it’s a solid company that manufactures high-quality packaging materials as well as specialized packaging machines. It’s really established a strong presence for itself in the North American market. As of writing, the total value of Winpak’s shares traded on the market was over $2 billion.
What makes Winpak an interesting choice for long-term income investors is the consistent approach to the business and focus on both innovation and sustainability. It’s always looking for better and more environmentally friendly ways to package products, which could give it an edge as consumer preferences and regulations evolve.
The dedication to creating value for the long haul, rather than just chasing short-term gains, makes it an appealing option for those who are thinking about their income stream several years down the line. Furthermore, its steady performance over time suggests a degree of reliability that can be attractive for income-focused portfolios.
CCL
Last but certainly not least, we have CCL Industries. It’s a global leader in the world of specialty labels and packaging solutions. The products are used across a huge range of industries, from everyday consumer goods you find in the grocery store to healthcare products and even automotive parts.
As of writing, the total value of CCL Industries on the market was around $12 billion, making it a pretty significant player. It has demonstrated strong and consistent financial performance over the years. A big part of this success has been the ability to diversify product offerings and strategically grow the business through acquisitions. It’s always looking for new ways to innovate and provide solutions that really meet the needs of a diverse customer base.
This customer-centric approach and global reach make it a strong candidate for generating income. That’s especially true for investors in the years to come. The wide range of products and the essential nature of packaging provide a degree of stability to revenue streams.