Passive Income: Rock-Solid Dividends That Could Survive it All

Turmoil in the stock market could be manageable if you’re young and looking for opportunities. However, turmoil is devastating if you’re close to retirement and living off your assets. Passive income from your portfolio should be as robust and reliable as possible. 

Here are some rock-solid dividend stocks that could have the capacity to survive pandemics, recessions, and even war in the years ahead. 

Passive-income stock #1

Fortis (TSX: FTS)(NYSE: FTS) is probably the best safe haven on the Canadian stock market. The utility giant is one of the most efficiently run essential businesses in the country. 

Fortis stock is flat today, even as Russia invades Ukraine. That should come as no surprise to investors who’ve watched the company for a few years. Fortis stock took a small dip and quickly recovered during the pandemic panic of March 2020. It’s been on steady upward climb since 1995. 

At the moment, this utility stock pays out a 3.7% dividend. That dividend is lower than Fortis’s annual earnings yield, which means the downside risk is minimal. In fact, the management team has forecasted a 5-6% growth in dividends every year for the next few years. 

If you’re a passive-income investor looking to minimize risk, this is a top pick. 

Passive-income stock #2

Brookfield Infrastructure Partners (TSX: BIP.UN)(NYSE: BIP) is yet another reliable passive-income stock. BIP offers a 3.7% forward dividend yield. That’s better than average but not extraordinary. What makes Brookfield’s infrastructure fund attractive is its exposure to hard assets. 

Brookfield’s impressive portfolio includes cellphone towers in India, data storage facilities in France, and railway lines in Brazil. It’s a diverse mix of essential infrastructure assets that retain their value and generate consistent cash flows regardless of economic conditions. 

The fact that Brookfield is diversified across the globe means the portfolio is safer than most domestic asset managers. This is reflected in the stock’s performance over the past 14 years. Brookfield has been steadily appreciating and delivering dividends since the financial crisis of 2008. 

Passive-income investors should consider adding this stock to their list. 

Passive-income stock #3

Northwest Healthcare Properties (TSX:NWH.UN) is another conflict-resistant passive-income stock that deserves attention. The company owns and operates specialized real estate assets that are leased out to hospitals and clinics. Healthcare, of course, is an essential business, which is why this segment of the real estate industry is so reliable. 

Northwest’s average lease term is 14 years, while the return on equity is higher than average commercial real estate trusts. That’s why the stock’s dividend yield is as high as 5.9%. 

The stock price, meanwhile, has been steadily moving higher since 2015. This combination of capital appreciation, long-duration leases, and steady cash flows make Northwest a top pick for passive-income investors. 

This reliable dividend stock could be the secret to making money in your sleep regardless of economic or political conditions.