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The 3 Top-Performing Passive-Income Stocks of 2020

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If there is one type of stock that has been serving you well in this volatile market, it has to be passive-income stocks. These babies have kept your investments strong, even during the market crash. That’s because each offer up dividends. Of course, that only goes for those that haven’t reduced dividends, if not completely cut them all together.

With another market crash likely on the way in the new year, and more down the road, now is a great time to consider more passive-income stocks. But, of course, you’re going to want to take a look back at last year to see how those stocks performed. If another crash is coming, you’re going to want stocks that will remain strong and stable, even if there’s a share price dip.

Luckily, I have three passive-income stocks that performed superbly during 2020 that you can add to your watch list. The key is to dig into industries that should continue to do well, even during a volatile market. So, let’s take a look at Northwest Healthcare Properties REIT (TSX:NWH.UN), Sprott (TSX:SII), and Richards Packaging Income Fund (TSX:RPI.UN).

Northwest

Northwest belongs to the healthcare sector, which has been seeing immense investment because of COVID-19. The company’s diverse range of healthcare properties have left it with occupancy at 97.2% as of its latest earnings report — an incredible feat for any real estate investment trust.

It’s also meant that revenue continues to climb, along with lease agreements. The average lease hit 14.5 years during the latest quarter, with revenue increasing 10.8% year over year for another quarter. The company even finalized a $3 billion agreement in a European joint venture. With a 6.2% dividend yield and 15% return in the last year, passive-income seekers can be sure they’ll continue to see strong results from Northwest.

Sprott

At first, you might think of being wary within the financial sector. However, if you’re going to take a page from someone like Warren Buffett, you’ll see that the famous investor may have sold some banks, but recently bought stake with asset firms. That’s why Sprott is a great option. The asset management firm has been doing incredibly well during this volatile market, so it’s experts like these you’ll want in your portfolio.

The company’s assets under management increased 76% year over year during its latest earnings report, with Sprott seeing an 82% year over year increase in total revenue. Shares are up 33% this year alone, and dividends remain strong at 3.39% as of writing. Investors may see another big boost as the company recent entered the New York Stock Exchange.

Richards Packaging

Another industry seeing major growth is packaging. The growth in e-commerce that many thought would happen over a decade seems to almost have happened overnight. This comes from a booming work-from-home economy; many people have been basically forced to stay home because of the pandemic. Businesses had to get online and ship goods or go under. So, packaging saw a boost that came from all this turmoil.

Richards in particular had a strong year, with the latest quarter seeing a 37% increase in revenue year over year. Shares were almost the same, coming up 38% in the last year alone, leaving the company’s dividend of 2.1% safe and stable. The company foresees the continuation of strong growth through acquisition and organically, so investors can pick this up feeling confident in future growth.

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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 NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS and RICHARDS PACKAGING INCOME FUND.

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