Passive-Income Investors: 3 Dividend Stocks to Buy Now

Nothing beats sitting back and collecting passive income. Here are three big-dividend stocks passive-income investors should check out!

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As a passive-income investor, you’re probably looking for dividend stocks with these traits: safe, ideally growing dividends and dividend yields that are decently high. Following Lowell Miller’s line of thought discussed in The Single Best Investment, a high yield is 1.5 to two times that of the stock market’s. The Canadian stock market yields about 2.55% at writing. 1.5 to two times that is about 3.8% to 5.1%. Here are three safe dividend stocks that provide safe dividends with yields that are at least within that range!

Passive-income investors love Enbridge stock

Enbridge (TSX:ENB)(NYSE:ENB) stock is popular for buy-and-hold, passive-income investors. The reason is none other than that it pays a big dividend yield. At $51.28 at writing, it yields 6.7%.

The leading North American energy infrastructure stock is low risk and highly predictable. It follows that its cash flow is highly predictable as well, which is why it has a long dividend-growth streak. Specifically, it has hiked its payout for 26 consecutive years.

The large-cap stock is still expected to increase its distributable cash flow per share by 5-7% per year. However, management is being conservative by raising its dividend at a rate of 3% in the last couple of years. First, it can improve its balance sheet. Second, it can maintain a safer payout ratio.

Also check out Manulife stock

Manulife (TSX:MFC)(NYSE:MFC) is a decent dividend stock for passive-income investors right now. It’s a value stock trading at about 7.9 times earnings, while analysts estimate an earnings-per-share growth rate of at least 8% annually over the next three to five years. Additionally, it has increased its dividend every year since 2014, earning its place on the list of Canadian Dividend Aristocrats. At $25.52 per share at writing, the dividend stock yields almost 5.2%, which is a juicy yield when compared to the stock market’s yield.

Here’s Brooke Thackray’s recent comment on the dividend stock:

“Manulife raised its dividend by 18%. It’s growing its business in North America and China. They have a dividend that pays over 5%. 80% of its business on the asset basis is based on fixed income. If we see rising rates, this is definitely going to be a company that will benefit from that. I like Manulife at this time.”

Brooke Thackray, research analyst at Horizons ETF Management Canada

NorthWest Healthcare Properties REIT

What’s more enjoyable for passive-income investors than getting big dividends from the likes of Enbridge and Manulife, which pay quarterly? That would be getting a monthly dividend from a high-yield stock. You can explore real estate investment trusts (REITs) like NorthWest Healthcare Properties REIT (TSX:NWH.UN) for a monthly dividend. Currently, the stable healthcare REIT yields 5.9%.

The global REIT collects rental income from hospitals, healthcare facilities, and medical office buildings. Its portfolio consists of about 192 properties. Its cash flow is highly stable, supported by a weighted average lease expiry of about 14 years. Its occupancy of roughly 97% is also reassuring to passive-income investors.

The stock of the essential business is likely to grind higher. The general analyst consensus expects approximately 9% upside over the next 12 months.

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.

The Motley Fool recommends Enbridge and NORTHWEST HEALTHCARE PPTYS REIT UNITS. Fool contributor Kay Ng owns shares of Manulife.

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