How to Invest $10,000 Today for Decades of Safe Passive Income

Want to earn safe and predictable passive income? Here are some ideas on how to invest $10,000 and earn +$400 per year.

protect, safe, trust

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When looking for extra investment passive income, there are many opportunities in stocks today. However, there are also many traps. Interest rates have rapidly risen and that has put pressure on several debt-heavy, dividend-paying stocks.

Canadian investors need to be very thorough in their investment due diligence. This is especially true when it comes to stocks with overtly high dividend yields.

Are you looking for safe passive income (and solid growth) for years and even decades ahead? Here’s a simple four-stock portfolio that you could spread across $10,000. It could earn more than $100 every quarter.

Decades of passive-income growth

Fortis (TSX:FTS) is the ultimate stock when it comes to safety. Fortis operates 10 regulated utility power and gas transmission and distribution businesses across North America. Given the predictable demand for heat and power, its business is very reliable.

Fortis has a tradition of conservatism. While it is not growing fast (around 5% a year), it has prioritized a very strong balance sheet and the sustainability of its dividend. The company has increased its dividend for 50 consecutive years.

Fortis stock yields 4.3% today. Put $2,500 to work in this passive income stock, and you would earn $26.55 quarterly.

Infrastructure-like real estate

Granite Real Estate Investment Trust (TSX:GRT.UN) is another very solid stock to hold for passive income for years ahead. Granite operates an infrastructure-like portfolio of logistics and manufacturing properties across North America and Europe.

It has very high +97% occupancy, and its average tenant term is over 6.5 years. This means that most of its cash flows are very foreseeable. Industrial real estate has been one of the most resilient real estate classes over the past several years. With trends like nearshoring/friend shoring, that is likely to continue.

Granite has an industry-leading, low-leverage balance sheet. That gives it the flexibility to ride out challenging economic times.

This passive income stock yields 4.3%. A $2,500 investment in Granite would earn $8.81 monthly, or $26.43 over three months.

Diversified utilities in one package

Another passive-income stock to own for decades is Brookfield Infrastructure Partners (TSX:BIP.UN). When I think of decades-long assets, I think of BIP’s portfolio. The company is positioned in everything from railroads to ports to cell towers and data centres to home utilities.

Over the years, this company has compiled an impressive portfolio of assets that can provide stability and growth. Consequently, it has also steadily increased its annual dividend by a mid- to high single-digit rate.

This stock yields 5% today. $2,500 invested in BIP would earn $31.05 quarterly.

Passive income and some growth

A final stock for long-term passive income is goeasy (TSX:GSY). This stock can give investors growth and income. It is Canada’s largest subprime lender. It provides loans to many individuals the big banks don’t service.

The company has delivered exceptional capital and income returns over the years. Even despite a slowing economy, it has continued to deliver solid profitability and growth. New verticals and geography could mean it still has many years of growth ahead.

goeasy stock yields 3.5% today. $2,500 in this passive-income stock would earn $21.12 every quarter.

Granite REIT$73.5533$0.267$8.81Monthly
Brookfield Infrastructure Partners$41.4160$0.5175$31.05Quarterly
Prices as of September 22, 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 Robin Brown has positions in Brookfield Infrastructure Partners, Goeasy, and Granite Real Estate Investment Trust. The Motley Fool recommends Brookfield Infrastructure Partners, Fortis, and Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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