How to Invest $15,000 This Year for Super-Safe Passive Income

Canadians with cash and that are hungry for safe passive income in a choppy market can snag dependable stocks like Fortis Inc. (TSX:FTS).

| More on:
A close up image of Canadian $20 Dollar bills

Image source: Getty Images

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.

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.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

More on Investing

A worker drinks out of a mug in an office.
Dividend Stocks

1 Dividend Stock to Buy if the Bank of Canada Keeps Cutting Rates 

This dividend stock is sure to benefit from ongoing cuts in the key interest rate and is already seeing some…

Read more »

ETF chart stocks

2 Canadian ETFs to Buy and Hold Forever in Your TFSA

I personally own both of these S&P 500 Index ETFs. Here's why.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

How Much Cash Do You Need to Quit Work and Live Off Dividend Income

Toronto-Dominion Bank (TSX:TD) pays a lot of dividend income. Can you live off of it in retirement?

Read more »

Retirees sip their morning coffee outside.

Retirees: 2 TSX Dividend Stocks That Have Raised Payouts for Decades

These top TSX dividend stocks now have 7% yields.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Tuesday, June 25

Besides Canada’s consumer inflation report, the latest U.S. consumer confidence data will remain on TSX investors’ radar today.

Read more »

An analyst uses a computer and dashboard for data business analysis and Data Management System with KPI and metrics connected to the database for technology finance, operations, sales, marketing, and artificial intelligence.
Dividend Stocks

Invest $10,000 in This Dividend Stock for $1,398.40 in Passive Income 

This dividend stock offers a whopping 11.9% dividend yield right now, with returns that should fly high for this cyclical…

Read more »

top TSX stocks to buy
Top TSX Stocks

Could This Undervalued Stock Make You a Millionaire One Day?

Looking for an undervalued stock you can buy today and hold for decades? Here's a great pick with a generous…

Read more »

An airplace on a runway
Stock Market

With Revenue Rising, Is Air Canada’s Sputtering Stock Finally Cleared for Takeoff?

Down 58% from all-time highs, Air Canada stock trades at a discount to consensus price target estimates in June 2024.

Read more »