How to Start Dividend Investing From $0: Creating Passive Income For Anyone, At Any Age

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Hi once again real money tribe,

As The Precious Metals Coach, most people know me for teaching about gold and silver. But here’s something you may not know: one of my other key financial pillars is dividend income investing. Why? Because when you combine steady income from high-yield ETFs with the stability of precious metals, you create financial independence, choice, and freedom. Metals protect your wealth. Dividends grow your wealth and pay you regularly. Together, they give you peace of mind.

Whether you live in Canada, the U.S. or just about anywhere, life is getting more expensive. A salary or two isn't cutting it like it used to. People are stretched and getting stressed about monthly bills, gas, groceries, kids' activities, surprise expenses, tuition and books, clothing...on and on and on.

Now here’s the best part: you don’t need a financial advisor, a six-figure lump sum, or years of market experience to start dividend investing to create an addiitonal income stream. In Canada, thanks to modern, easy-to-use DIY brokerage platforms like Wealthsimple and Questrade, anyone can access the large and growing universe of high-yield income ETFs right from their phone, tablet or computer, usually commssion-free too. Plus, if you’re worried about risk, know this: many of these ETFs boost their yields by using a simple and time-tested strategy called covered calls. It sounds complicated, but really it isn’t. Covered calls are a conservative way to generate extra income on stocks the fund already owns — they don’t add big risks, they just turn steady blue-chip holdings into bigger cash paycheques.

So let’s break this down, bust the myths, and show how anyone, including you — even starting from $0 — can begin creating a stream of passive income simply and today.

Breaking the Myths of Dividend Investing

Myth #1: You need a lot of money to begin. Wrong. You don’t need a big lump sum sitting around to get started. Even something as small as $20 can buy your first shares of an income ETF. The key isn’t starting big — it’s starting at all. From there, adding regular monthly contributions (whether that’s $50, $100, or $200) helps your portfolio grow faster, while dividends reinvest and snowball over time.

Myth #2: You need to be a savvy, experienced investor. Not true. Most people believe investing is only for those who understand balance sheets, charts, and market timing. In reality, you can keep it simple by owning one or two high-yield income ETFs. That’s it. The fund does all the heavy lifting by owning dozens of companies for you, paying the dividends into your account.

Myth #3: Dividend investing is only for seniors or retirees who need income. Wrong again. In my opinion, this style of investing is for anyone, at any age, and at any stage of life. Seniors may appreciate the steady cash flow, but young investors actually benefit the most from time and compounding. Starting early allows your dividends to snowball over decades, creating a much larger income stream later in life. This approach isn’t limited to those on a fixed income — it’s about building financial independence, security, and choice regardless of where you are in your journey.

Myth #4: It’s a lot of work. Actually, it can be the easiest style of investing. You could own just one ETF and set up a DRIP (Dividend Reinvestment Plan) so your dividends automatically buy more shares. That means your income grows without you lifting a finger. Compared to growth investing — with all the stress of market-watching, trading, and hoping your stocks recover — an income approach can feel like a breath of fresh air. Plus, it can actually make investing fun again, or maybe fun for the first time!

“If This Is So Good, Why Haven’t I Heard of It?”

That’s usually the first reaction clients and friends and family have when I talk about high-yield income ETFs. “Is this a scam? How can it pay 15–20%? Are these funds even safe?”

Here’s the truth: these ETFs aren’t scams. They’re regulated, publicly-traded, and offered by a large number of reputable Canadian investment firms. Canada has a growing number of excellent high-yield income ETF providers including BMO, Brompton, Evolve, Harvest, Hamilton, Purpose, and GlobalX. You can buy these ETFs in your regular brokerage account (Wealthsimple, Questrade, or even through your bank).

The reason the yields are higher than traditional dividend-paying stocks is because of a simple, conservative income strategy called "covered calls". In addition to collecting the dividends from the stocks/investments they hold (whether banks, utilities, insurance companies, etc.), the ETFs also generates extra income by “renting out” some of those stocks through call options. This doesn’t add big risk — it just means you’re trading away a little of the upside growth potential in exchange for steady, reliable cash in your pocket now. Plus, this is all done for you seamlessly by the fund manager, so you don't have to lift a finger.

So why don’t more people invest this way?

1. Most advisors don’t promote them. They’d rather put you in their own “balanced funds” or products that make them money. This DIY investing style doesn't jive well with advisors as they want to charge you ongoing fees.

2. It sounds too good to be true. When people hear “18% yield,” they automatically assume scam or not substainable. In this case, the math and regular income are real. The ETF makes money by charging an annual management fee, usually 1% or less, which they take right off the top so you never see or feel it. For me, 1% is a small price to pay for big yields of 18% plus.

3. People are conditioned to chase growth. I was one of those for too long and maybe you are too. Many try to swing for the fences with tech stocks or the latest hot picks be it Tesla, Palantir, NVDIA, or AI stock, only to end up stressed, disappointed, and behind.

High-yield income ETFs often have flown under the radar, but in my opinion, they’re one of the best-kept secrets for everyday investors who want cash flow, less stress, and more peace of mind. In fact, this is one of the fastest growing segments of the investment industry with more and more income-oriented funds being introduced all the time. More people are seeing and experiencing the ease and benefits of prioritizing income over growth while reducing stress and inreasing their wealth in a more consistent and predictable way. I know I do and has literally changed my family's life.

One of My Favourites: BANK from Evolve ETFs

One of my personal favourites is BANK, offered by Evolve ETFs, a Toronto-based firm (one of several excellent Canadian fund companies, including Harvest, Hamilton, Purpose, and GlobalX). BANK invests in Canada’s big banks—RBC, TD, BMO, Scotiabank, CIBC, and National Bank—plus the largest life insurance companies like Sunlife, Manulife and Canada Life.

Think about this. Owning these stocks individually would give you about a 5–6% yield and most only pay out every four months, but BANK layers on a covered call strategy to boost that yield to around 17% and pays monthly Covered calls aren’t risky — they’re simply a conservative way to generate extra income on stocks the fund already owns. Plus, by owning a basket of companies, I believe this makes the overall investment less risky compared to owning a single-stock as you're more diversified should something happen to one of the stocks.

Another Favourite: CDAY from Hamilton ETFs

Another standout which I really like is CDAY, offered by Hamilton ETFs. CDAY invests in Canada’s financial giants, but it also includes other large, established companies such as CN, Couche-Tard, and Agnico-Eagle Mining, making it even more diversified and lowering risk further.

What makes CDAY special is that it pays its distributions bi-weekly. Imagine that — it’s like creating an extra paycheque every two weeks. By owning a basket of strong, reliable companies with a covered call strategy, CDAY has been delivering high, consistent income far above what you’d get by owning these stocks individually.

These are just two of the Canadian high-yield income ETFs that I use personally and often suggest to clients in helping them develop their own passive income stream based on needs and expectations. There's a high-yield income ETF for almost any need be it technology, AI, crypto, S&P 500, mining, energy, healthcare, etc. Looking for even more yield? There's an even bigger universe of U.S. high-yield funds which often have yields 20% and beyond...some up to 100%...yup that's right. These are not for everyone as they need to be well understood, including risk.

Why Not Just Invest in the S&P 500 or TSX?

You might be thinking, “Why not just invest in a standard index fund like the S&P 500 or TSX, which historically averages about 10% annually?”

Here’s the thing: with a high-yield income ETF, you can earn more than 10% in cash income alone, plus the potential for capital gains. That’s income first, growth second, rather than hoping your index fund will recover from market drops while you watch and worry. Compared to traditional index investing, a high-yield income ETF is a no-brainer for anyone who wants steady, predictable cash flow while still capturing upside growth.

A Tale of Three Conservative Investors: Jim, Jane, and Spencer

Jim and Jane, both in their early 40s, start with $0 and invest $200 per month for 20 years inside a TFSA, reinvesting dividends, with an assumed 2% annual growth. Both are conservative investors who want safe, steady income to sleep well at night, avoid risky investments, and boost their lifestyles without stress.

Spencer, 25, is just starting his career. He doesn’t have a lump sum, but he decides to invest 10% of his monthly income ($200) into a high-yield income ETF, reinvesting all dividends. He follows this strategy for 30 years, until he’s 55 and ready to retire.

Here’s how their results compare:

• Jim (traditional dividend stocks like RBC, BMO, Hydro One, Telus, Suncor): After 20 years, his portfolio grows to roughly $95,000, generating $6,650 per year in dividends (about $550 per month). He earns lower yield and would need much more capital to get the same income as Jane.

• Jane (high-yield income ETF like BANK or CDAY): After 20 years, her portfolio grows to approximately $420,000, generating $75,600 per year (over $6,000 per month). Her approach is simpler, requiring only one fund on DRIP, less monitoring, and less stress. Jane could even create her own personal pension plan from these dividends.

• Spencer (high-yield income ETF, starting at 25): After 30 years of investing $200 per month and reinvesting dividends, his portfolio grows to roughly $1,150,000, generating approximately $207,000 per year in dividends — around $17,250 per month! By starting early, Spencer benefits from decades of compounding, giving him an enormous dividend stream and the ability to retire comfortably with a personal pension plan.

🔑 The key lesson: in my opinion it’s never too early or too late to start. Starting young gives more time for dividends to snowball, while starting in your 40s can still provide meaningful income and financial security. Consistent contributions, reinvested dividends, and a high-yield income ETF can create a lifetime of financial independence, choice, and peace of mind.

How Easily Can You Grow Your Dividend Income?

Here’s how quickly things can snowball:

• With just a small start, you could be earning $100 per month in dividends in only a few years.

• Stay consistent, and that can grow into $500 per month.

• Stick with it long term, and you can easily hit $1,000 per month or more.

Obviously, the more you contribute, the faster the income snowballs. But the beauty of dividend investing is that it works at any scale, for any age, and with any starting point.

Why This Approach Brings Peace of Mind

When you invest for growth, you’re often glued to the markets, stressing about every dip, and second-guessing yourself. Most people try to swing for the fences with growth investing, but it rarely works. It usually adds stress, frustration, and wasted time.

With an income-oriented approach, I’ve found I trade way less and hold my ETFs longer. The income keeps coming in, whether markets go up or down. That steady cash flow reduces fear, lowers stress, and lets you sleep better at night knowing you’re making steady progress toward your financial goals instead of just hoping and praying.

When those dividends land in your account, you have choices:

• Use the extra cash to help pay bills.

• Diversify further by picking up growth-style investments that look attractive.

• Or, like I do, reinvest the dividends to snowball and compound into bigger payments and more income.

How to Get Started

Getting started with high-yield dividend investing is simpler than you might think, and you don’t need a large lump sum:

1. Open a DIY online brokerage account such as Wealthsimple or Questrade.

2. Choose your account type: TFSA, RRSP, or a regular investment account.

3. Fund your account with any amount you can spare.

4. Choose your high-yield income ETF — BANK, CDAY, or another option.

5. Turn on DRIP to reinvest dividends automatically and watch the cash snowball over time.

Even a modest start can snowball into hundreds or thousands of dollars per month, creating a personal income/pension plan and boosting your financial independence.

Ready to Take the Next Step?

If you want to see whether creating your own stream of passive income through high-yield dividend investing could be right for you, I offer a free 15-minute "Discovery Call". This is your chance to get answers to your most burning questions, learn how to get started, and explore whether this approach fits your financial goals.

Book your "Discovery Call" today — and take the first step toward more financial independence, choice, and peace of mind.

P.S. Enjoyed this article? I’d love to hear from you! Please rate and comment with your thoughts, questions, or experiences with dividend investing — your feedback helps me create more content that truly helps people like you.

To your financial health,

David LeBlanc

The Precious Metals Coach + Money Mindset Mentor

"Real Money For We The People"

preciousmetalscoach@proton.me