How to Invest $10,000 This Year to Create Ultra-Safe Passive Income

If you’re sitting on cash, these four dividend stocks will create passive income at a bargain price on the TSX today, and continue to for decades.

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Many Canadians out there may be sitting on a load of cash, waiting for the right time to invest. However, it might not seem like it, but it really is always a good time to invest. That’s true if you’re taking the long-term approach to investing.

As Warren Buffett has said, don’t buy a stock for 10 minutes if you wouldn’t hold it for 10 years. This approach shows that you need to look at the underlying performance of companies to see how they’ll do not just a year from now, but a decade from now. And we’re sure to get out of this current market downturn within that next decade.

With that in mind, I would look to companies that produce passive income through dividends. These are usually proven companies that can support dishing out payments in the form of dividends. But if you want superior dividends in 2023, this is what I would do with that $10,000 you might be sitting on.

Find a safe sector

When it comes to safety, get basic. This would involve investing in essential services and basic materials. That might be healthcare, infrastructure, or mining for certain minerals or agriculture.

If you’re looking for ultra-safe passive income then, I would go with a mixture of these essential services. That way, you can be sure that your passive income will keep coming in no matter what the market is going to do. And there are four I would consider on the TSX today.

4 stocks to buy now

The four options I would consider for ultra-safe passive income are NorthWest Healthcare Properties REIT (TSX:NWH.UN), Teck Resources (TSX:TECK.B), Nutrien (TSX:NTR), and Brookfield Infrastructure Partners LP (TSX:BIP.UN).

NorthWest invests in healthcare properties, providing a diversified set of properties all around the world from hospitals to office buildings. You can pick it up trading at 8.2 times earnings as of writing, with a dividend yield at 8.51%. Plus, it hands out that dividend monthly!

Teck stock is another great option as it focuses on basic materials such as silver and copper, as well as steel-making coal among other materials. These are needed no matter what happens, providing you with stable income. Shares trade at just 7.3 times earnings, with a dividend at 0.88%.

Nutrien stock is new but don’t count it out. This company continues to merge a fractured industry, even providing e-commerce to the farming community. You can pick up the agriculture crop nutrient stock trading at 5.4 times earnings and get a 2.65% dividend yield.

As for Brookfield stock, infrastructure is needed no matter what goes on. From cell towers to roads, infrastructure is necessary for the world to run. And with a diversified, global portfolio, Brookfield is a strong option. It offers a 4.6% dividend yield, but is quite expensive as other investors have caught on to the company’s stability.

Bottom line

If you want to put your $10,000 somewhere safe on the TSX today, these are the four stocks to achieve that. Each will remain strong no matter what the stock market does, and rebound quickly out of any downturn. Remember to use that passive income wisely, and reinvest whenever you can.

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 Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends Brookfield Infrastructure Partners, NorthWest Healthcare Properties Real Estate Investment Trust, and Nutrien. The Motley Fool has a disclosure policy.

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