Motley Fool investors seeking passive income must take a few things into consideration. The first and foremost piece of advice would be to make sure dividends are stable. While a high yield can be enticing, you want to make sure your passive income isn’t going to be suddenly cut on the TSX today.
Market crashes, poor earnings, and closures — it can all happen. So, you want to make sure that your funds are safe — especially if you’re relying on these dividends for passive income to supplement your regular income. With that in mind, here are three solid options you can buy and hold forever.
There’s a reason we recommend Enbridge (TSX:ENB)(NYSE:ENB) so often here at Motley Fool. The company doesn’t just have a high yield, but a solid one. This comes from the long-term contracts Enbridge stock has that will see decades of cash flow coming in. Furthermore, that passive income will continue to grow from its current projects. Three of these projects are set to be up and running by the fourth quarter of this year!
Then there’s the future growth for Enbridge stock. The company is going renewable, setting up three offshore wind farms and four solar power projects, and three of those are already up and running. All of this bodes well for long-term investors to consider. As for the dividend yield itself, it currently sits at 6.61%. That yield has grown at a compound annual growth rate (CAGR) of 14.32%. All this, and you can pick it up on the TSX today for a valuable P/E ratio of 16.93.
Real estate is another strong option to consider for Motley Fool investors, but it depends where. If we learned anything this last market crash and pandemic, it’s that healthcare will always be essential. This was great for NorthWest Healthcare Property Units REIT (TSX:NWH.UN). The company not only continued seeing rents come in, but it also re-signed lease agreements due to low interest rates. The average is now at 14.3 years for its worldwide portfolio!
This also set the company up for further growth opportunities, buying up properties in the Netherlands and an Australian healthcare REIT. And while shares grew by a reasonable 10% year to date, it’s the dividend yield that Motley Fool investors should consider. That yield sits at 6% as of writing. And you can pick it up for the very valuable 9.49 P/E ratio on the TSX today. So, that’s a passive-income stock that simply isn’t going anywhere.
Another strong sector to consider for passive income is mining. In particular, gold miners have been expanding, creating diverse portfolios to help pick up the slack when other mines are down. Aura Minerals (TSX:ORA) took on several new mines before the pandemic, seeing production soar during that time in Latin America. In fact, it was the highest-growth stock on the TSX today for the last three years at 1,337%!
But again, you’re here for passive income. The last year stalled only slightly for share price, and that will likely climb higher thanks to production levels rising post-pandemic. And even with all this growth, you can still pick up the stock for a very valuable P/E ratio of 7.28. The dividend yield sits at a high 6.93%, providing solid passive income for Motley Fool investors on the TSX today.