The S&P/TSX Composite Index rose a paltry two points to close out the trading session on Tuesday, February 14. Canadian markets have had a solid start to 2023. However, high interest rates and geopolitical tensions are just some of the factors that continue to contribute to general volatility. Investors may want to target safe passive-income equities in this climate.
Today, I want to discuss how you can seek to invest $15,000 and gobble up super-safe passive income. Let’s jump in.
This future Dividend King is one of the safest passive-income stocks on the TSX
Fortis (TSX:FTS) is the first super-safe passive-income stock I’d look to invest in with $5,000 out of our original $15,000 cash trove. This St. John’s-based utility holding company has proven to be one of the most reliable dividend stocks on the TSX. Indeed, it is on track to become one of the first Dividend Kings on the TSX. A Dividend King is a stock that has achieved at least 50 consecutive years of dividend growth.
Shares of this utility stock have dropped 3.2% year over year as of close on February 14. The stock is down marginally so far in 2023. However, investors should not let this middling recent stock performance get them down.
This company unveiled its fourth-quarter and full-year fiscal 2022 earnings on February 10. Fortis delivered adjusted net earnings per share (EPS) of $2.78, which represents annual EPS growth of 7%. Meanwhile, it posted capital expenditures of $4 billion. That led to rate base growth of 7%. Fortis’s aggressive capital plan is set to power annual dividend growth of 4-6% through 2027.
Fortis has already delivered 48 straight years of dividend growth. That means it is two years away from becoming a Dividend King. This is a passive-income stock you can trust for the long haul.
Here’s another dividend beast to target in the middle of February
BCE (TSX:BCE) is a Montreal-based telecommunications and media company that provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. This company has also delivered consistent passive income for many years. Its shares have jumped 1.5% in the new year. I’m looking to snatch up shares of BCE with the next $5,000 investment.
In fiscal 2022, BCE reported operating revenues of $24.1 billion — up 3.1% compared to the previous year. Meanwhile, adjusted net earnings increased 5.6% from fiscal 2021 to $3.05 billion in fiscal 2022. Cash flows from operating activities climbed 4.5% to $8.36 billion.
Shares of this passive-income stock currently possess a favourable price-to-earnings ratio of 19. Moreover, it offers a quarterly dividend of $0.968 per share, which represents a tasty 6.3% yield.
One more passive-income stock to spend your final $5,000 on
I’d look to spend our final $5,000 on Enbridge (TSX:ENB) stock in our hypothetical. This Calgary-based company is an energy infrastructure giant that investors can rely on for the long term. Enbridge stock is up 0.8% in the year-over-year period as of close on February 14.
This energy giant released its final batch of fiscal 2022 results on February 10. It posted full year adjusted earnings of $5.7 billion, or $2.81 per common share — up from $5.6 billion, or $2.74 per common share, in the previous year. Moreover, the company reaffirmed its Distributable Cash Flow (DCF) per share guidance of $5.25 to $5.65. Enbridge is a passive-income stock you can trust going forward.
Enbridge last paid out a quarterly dividend of $0.887 per share, representing a very tasty 6.6% yield. This is a passive-income lineup worth getting excited about in the middle of February.