Finding that perfect mix of investments to generate passive income can take years for you to build, especially considering the number of investments you can consider making a part of such a portfolio.
Dividend investing presents one of the best opportunities for you to start building a passive-income stream to generate the returns you’re looking for through your portfolio. Starting as early as possible and building up your holdings can gradually lead to you generating a substantial amount in passive income through shareholder dividends alone.
Today, I will discuss two dividend stocks that can help you get a strong start to building a passive-income portfolio.
Suncor Energy
Suncor Energy (TSX: SU)(NYSE: SU) could be an excellent stock to consider if you want to generate stable income through shareholder dividends. The company saw a significant boost in its financial performance due to the rise in oil prices and fuel demand in 2021. 2022 paints an even better picture for the energy industry giant as WTI crude has been predicted to hit the US$100 mark this year.
The company’s management used the excess cash from last year’s performance to reduce debt, begin a share-buyback program, and raise shareholder dividends. Suncor Energy stock trades for $36.32 per share at writing, and it boasts a juicy 4.63% dividend yield. Investing a hypothetical $25,000 in Suncor stock at these levels could provide you with $1,157.50 per year through shareholder dividends, translating to $96.45 per month.
BCE
BCE (TSX: BCE)(NYSE: BCE) is another strong pick to consider if you want to create a passive-income stream through dividend stocks. BCE is a $60.44 billion market capitalization telecommunications giant. It is the top telecom operator in Canada, and it enjoys a wide competitive moat. The company has the financial means to fund its shareholder dividends comfortably while investing to improve its position in the market.
The company has invested $2 billion to expand its 5G network, unlocking the potential to generate even greater revenues in the coming years. BCE stock trades for $66.40 per share at writing, and it boasts a juicy 5.27% dividend yield. Investing a hypothetical $25,000 in BCE stock at these levels could provide you with $1,317.50 per year through shareholder dividends, translating to $109.79 per month.
Foolish takeaway
With $25,000 invested in Suncor Energy stock and BCE stock each, you can generate $206.16 per month through shareholder dividends alone.
Remember that the investment amounts I have mentioned are hypothetical. You should not allocate such a significant amount to just two equity securities to generate passive income. Ideally, you should build a portfolio of various securities that has an excellent average dividend yield matching these levels.
Suncor stock and BCE stock could be excellent investments to consider when you start building such a portfolio.
