Passive Income Portfolio: 4 Dividend Stocks to Get Started

These dividend stocks offer some of the best and most stable passive income out there if you want to get through 2023 safely.

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A passive income portfolio could be a saviour during the next year. After all, we’re heading towards a recession that economists predict should be here by mid-2023. That means what we’re seeing now isn’t anywhere near where share prices could fall.

For proof, look to the past if you want a hint of the future. During the last two recessions, we saw that market drop by around 40%. As of writing, the TSX today is only down by about 11% from 52-week highs. And even at its lowest point, it was only down by close to 20%.

With that in mind, it’s time to start preparing. Create some cash flow by investing in dividend stocks and creating a passive income portfolio. If this sounds like something you’d be interested in, here are four to get you started.

Slate Grocery REIT

There are some dividend stocks out there trading downwards simply because they’re in the wrong sector. Real estate investment trusts (REIT) are an example, and Slate Grocery REIT (TSX:SGR.UN) is one of the companies down when it shouldn’t be.

The company maintains a strong occupancy rate and continues to expand, acquiring more grocery chains across the United States. Further, it has proven that grocery stores are a smart investment. We need to eat, and therefore these will be around no matter what the future holds.

Slate stock is also one of the dividend stocks trading at a valuable 4.7 times earnings, and now has a dividend yield at 8.85%. So it’s a great time to pick up the stock for some passive income.

Canadian Tire

Another company that has proven to be strong in the last three years is Canadian Tire (TSX:CTC.A). This retail story has been a bit of a pleasant surprise. The retail company has proven that Canadians will continue to come back for their necessary needs at a good price. This was true even during the pandemic when the company expanded its business through ecommerce offerings.

This alone was a substantial boost, but then the company went further. It was one of the few dividend stocks out there to continue seeing cash flow rising during supply chain disruptions. This is because the company has warehouses on location to store goods, keeping products available pretty much at all times.

Trading at just 9.5 times earnings and with a dividend yield at 4.19%, it’s a great time to pick up Canadian Tire stock as well for your passive income portfolio.

Restaurant Brands

Speaking of the pandemic, we saw Restaurant Brands International (TSX:QSR) drop into oblivion during that time. With no customers coming in, how was it going to survive? Well, it’s gone on to both survive and thrive, bringing in even more cash as the company found ways of offering delivery and curbside service.

This has continued, along with new product offerings as pandemic restrictions are easing off and bringing customers back. So while shares dropped off, they’re coming right back with shares of the passive income stock actually up by 20% in the last year alone!

So, you may actually see some positive movement continue from dividend stocks like this one, while also being able to bring in a dividend yield of 3.45%.

NorthWest REIT

Finally, if you’re looking for a passive income portfolio that’s set up to get you through this rough year, I would consider NorthWest Healthcare Properties REIT (TSX:NWH.UN) a buy as well. It’s one of the dividend stocks that remains incredibly valuable given its future outlook. Yet, it trades down about 38% in the last year! Again, simply from being in the real estate sector.

NorthWest stock continues to show signs of strength, with a 97% occupancy rate as of writing, and an average 14-year lease agreement. That’s basically unheard of, but comes from investing in healthcare properties around the world. This includes hospitals, offices, you name it. And is why the company can continue to dish out dividends.

Shares remain a steal trading at 7.6 times earnings, with a yield at 9.07% as of writing. So definitely consider this one as well if you want a strong passive income portfolio to get you through 2023.

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 NorthWest Healthcare Properties Real Estate Investment Trust and Restaurant Brands International. The Motley Fool has a disclosure policy.

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