Uncertainty over the financial future of Motley Fool investors remains just as strong as ever. The pandemic still continues on, with a spring surge potentially on the way. And the invasion in Ukraine has only created an even more dire situation.
Add to that inflation and rising interest rates, and it’s unclear why the markets remain optimistic at this time. The volatility index remains at about 20, showing a low volatile market. But I’m not so sure. After all, the markets aren’t controlled by a rational being. It’s controlled by people. And people make mistakes.
So if you’re a Motley Fool investor with some cash to invest but continue to be fearful, try to be rational instead. Think about finding passive income stocks that can offer stable income no matter what happens. Even in today’s uncertain environment.
Opting for the lowest of low risk If you want to find a company that’s certain to keep growing no matter what, then you should be looking at utilities. But the cream of the crop remains Fortis (TSX:TSX:FTS)(NYSE:FTS). This utility stock has continued to grow both organically and through acquisitions over the last several decades. And its dividend continues to climb right alongside.
The passive income stock has raised its dividend each year for almost 50 consecutive years. All while providing $58 billion in assets to over three million customers across North America and the Caribbean.
Fortis stock now offers a dividend of 3.43%. Furthermore, it’s likely to increase by around 6% each year through 2025. As for shares, returns have been stable as well. Share are up about 2% year to date, 14% in the last year, and 41% in the last five years.
Skip consumer goods, look into tech Consumer goods have been a go-to for many investors. After all, these are commodities we’ll need forever, right? Whereas tech stocks are too new. However, that’s not the case for every tech stock.
In fact, tech companies are become a necessity as well, especially software companies such as Constellation Software (TSX:CSU). The company has a proven track record of solid performance, leading passive income seekers to know it will continue paying out a stable dividend. That comes from a similar growth path as Fortis stock, buying up companies to create a $46 billion company.
Even as recessions, market crashes, pandemics, and more hit, Constellation proves it can weather any storm. It’s remained unwavering with a 0.24% dividend yield. Not that high at $5.04 per share, but that’s because its share price continues to surge.
Shares of Constellation are down 7% year to date, offering a solid jumping in point. Meanwhile, shares are up 24% in the last year, and 235% in the last five years through this volatile time.
A safe, high-yield stock Now if you’re serious about passive income stocks, then you’re likely going to look for monthly producers. There are a lot out there, but one that’s remained steady no matter what volatility comes its way is NorthWest Healthcare Properties REIT (TSX:NWH.UN).
This health care real estate investment trust continued to bring in rent even during the pandemic. That’s of course thanks to its chosen portfolio of health care companies. It allowed the company to expand its portfolio, buying up even more properties around the world. And with interest rates at low levels beforehand, it now has an average lease agreement of 14 years! That’s stability right there.
Yet it still offers a solidly high dividend yield of 5.71% as of writing. Meanwhile, shares have climbed 0.72% year to date, 7.25% in the last year, and 23% in the last five years. So while returns aren’t astounding, they’re stable just like the other passive income stocks you’ll have.
The post 3 Safe Passive Income Stocks to Buy Now and Hold Without a Worry appeared first on The Motley Fool Canada.
Fool contributor Amy Legate-Wolfe owns NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends Constellation Software, FORTIS INC, and NORTHWEST HEALTHCARE PPTYS REIT UNITS.