Irrespective of whether an individual is just looking forward to getting some extra dough every month or running a side hustle, passive income can be an excellent way of generating additional cash flow.
Interested individuals, including retirees, can choose from a wide array of passive-income stocks out there. When it comes to such stocks, I believe Dream Industrial REIT (TSX: DIR.UN), Fortis (TSX: FTS)(NYSE: FTS), and Restaurant Brands (TSX: QSR)(NYSE: QSR) are among the top options right now.
Here’s why.
Top passive-income stocks: Dream Industrial REIT
Dream Industrial REIT is an open-ended, unincorporated real estate investment trust boasting a portfolio of industrial properties situated in key markets in the United States and across Canada. This company aims at building upon and growing its portfolio to offer sustainable and stable cash distributions to unitholders.
The business is geographically diversified, with properties spanning Europe, the United States, Ontario, Quebec, and Western Canada. Indeed, the company’s Canadian portfolio is responsible for the substantial revenue of this REIT — an unusual but compelling factor to consider.
This REIT recently posted solid fourth-quarter and year-end financial results. In Q4 2021, the company’s net income grew 133% in comparison to the same quarter of 2020 and 204% on a full-year basis. These sorts of results have allowed Dream to offer investors a 4.3% dividend yield.
Fortis
A top North American utility company, Fortis remains a top pick of mine for investors looking for passive income. Much of this is to do with the company’s extremely stable earnings over time. As a regulated utility, investors have a very good idea about Fortis’s earnings growth profile over the long term.
Fortis has relied on this earnings stability to continue to pay out growing dividends. Fortis’s annual dividend payout has increased from $1.16 in 2012 to $2.14 today. That’s good for a 6.3% CAGR in terms of dividend growth over the past decade. Indeed, most experts suggest such a growth rate is likely to continue over the long term.
Fortis’s nearly five-decade long dividend-growth track record speaks for itself. Accordingly, for investors seeking reliable (and growing) passive income, Fortis is a great option to consider right now.
Restaurant Brands
Last but not least, we have Restaurant Brands. This global fast-food conglomerate is one of the planet’s largest restaurant organizations with over $35 billion in system-wide sales from last year. These sales were generated via a footprint spanning 100 nations and more than 28,000 restaurants.
The company posted impressive Q4 2021 results. Its revenues and earnings exceeded consensus analyst estimates. Additionally, many of Restaurant Brands’s core metrics improved on a year-over-year basis. In short, this company continues to benefit from a loyal and growing customer base.
These fundamentals have allowed Restaurant Brands to pay out a juicy 3.9% dividend yield. For those thinking long term with their passive-income stocks, this is a great one to consider at these levels.
