I’ve been focusing much my time on finding passive income lately. It’s not that I wasn’t before, but these days, dividends have become more important than ever. Like many Canadians, I’m needing extra income as I become increasingly strapped for cash amid an economic downturn.
The kids are now at home 24/7, so working is harder than it was before. Yet there are still bills to pay, debts to cover, and groceries to buy.
Dividend stocks have thus been my number one source of seeking passive income during these tough times. Luckily, there are a number of strong, stable dividend stocks that also have a promising future after the pandemic. So let’s take a look at a few.
Canadian Natural Resources
Canadian Natural Resources Ltd (TSX:CNQ)(NYSE:CNQ) has the benefit of being the largest natural gas and crude oil explorer and producer in Canada. It not only operates in Canada, however; the company has expanded into the United States, the United Kingdom, and offshore Africa.
In North America, it holds some of the best oil sands assets, with even more growth potential in the future. Luckily, even now it has stable income from its diversified portfolio, which means its dividend will remain strong even during a downturn.
In the last five years, the company has increased its dividend an average of 16.7% per year. Today, you can get passive income of $1.70 per share per year, a dividend yield of 6.28% as of writing.
To give you an idea, before the crash an investment of $10,000 would bring in $394.40. Today, that same investment brings in almost double at $606.90 per year.
With over $1 trillion in assets, Manulife Financial Corp. (TSX:MFC)(NYSE:MFC) has a lot of wealth to go around. The company is one of the leading international financial services companies in the country. It provides financial advice, insurance, and wealth and asset management solutions to individuals and businesses, a highly lucrative area for the business.
What makes this even better is that these assets are fixed income, making up 80% of the company’s business. But the business is also growing. It’s already in the United States and Canada, but has also expanded into Asia, where the business should see even more gains.
In the last five years, Manulife has increased its dividend an average of 13% per year. Today, you can bring in passive income of $1.12 per share per year, a dividend yield of 6.09% as of writing. Before the crash, an investment of $10,000 would give you $403.20. Today, that same investment would bring in $604.80 per year.
Finally, Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) is the perfect stock for those seeking dividends from a long-term investment. The company has a lot going for it today. First, it’s well below fair value in share price.
Second, it has secured growth projects of $5.6 billion to build more pipelines over the next few years to help end the oil and gas glut.
Finally, the company is supported by long-term contracts that will see cash coming in for several decades, which makes its current dividend yield completely safe.
In the last five years, Pembina has increased its dividend an average of 8% per year. Today, you can bring in passive income of $2.52 per share per year, a dividend yield of 7.05% as of writing.
Before the crash, an investment of $10,000 would give you $466.20.
Today, that same investment would bring in $720.72 per year.
With that extra cash coming in, consider a millionaire or even billionaire-maker stock.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Amy Legate-Wolfe owns shares of PEMBINA PIPELINE CORPORATION. The Motley Fool recommends PEMBINA PIPELINE CORPORATION.