Retirees: Boost Your Passive Income With These 3 Stocks With Sure Dividends
Image source: Getty Images
This has been a difficult year, even for professional investors, as rising inflation, multiple rate hikes and ongoing geopolitical tensions have heightened equity market volatility. With recent rate hikes failing to stem inflation, analysts expect the US Federal Reserve to raise interest rates by 0.75% in July. Thus, a higher interest rate could increase borrowing costs, which would hurt growth. Thus, equity markets could remain volatile in the short term.
Given the short-term challenges, retirees could boost their passive income with these three dividend-sure stocks.
NorthWest Healthcare Properties REIT
With a high dividend yield of 6.61%, NorthWest Healthcare Properties REIT (TSX:NWH.UN) is my first choice. It owns and operates a portfolio of 229 healthcare properties in eight countries. Given its defensive portfolio, long-term contracts and government-supported tenants, the company enjoys higher occupancy and recovery.
Meanwhile, NorthWest Healthcare is looking to expand its portfolio. It recently acquired 27 healthcare facilities in the United States. It has a healthy $2 billion project pipeline and is also looking to acquire assets in the UK, Australia and Canada. Thus, these growth initiatives could increase its cash flow, allowing the company to pay dividends at a healthier pace.
Currently, NorthWest Healthcare pays a monthly dividend of $0.0667/share, with a forward yield of 6.61%. So, given its robust cash flow and high dividend yield, I think the company would be a great buy for risk-averse investors.
Enbridge (TSX:ENB)(NYSE:ENB) has been paying dividends for 67 years. It currently operates over 40 diverse income-generating assets, with a substantial percentage of its income coming from regulated assets. Fluctuations in the price of oil would only impact 2% of its cash flow, while 80% of its EBITDA is indexed to inflation. Backed by its reliable and stable cash flow, the company has increased its dividend over the past 27 years, with its forecast yield currently at 6.45%.
The company’s asset utilization rate has increased in a context of growing energy demand. Additionally, the company is continuing its $10 billion secure growth program, hoping to deliver $4 billion worth of projects by the end of this year. Meanwhile, Enbridge is also bolstering its renewable asset base with approximately 4.5 gigawatts of projects under construction or development. Thus, these growth initiatives could increase its cash flow, allowing the company to continue growing its dividend. So I believe the Enbridge dividend is safe.
With the growing demand for telecommunication services, I chose ECB (TSX:BCE)(NYSE:BCE) as my last choice. The company generates stable cash flow as a substantial percentage of its revenue comes from recurring sources. The company has adopted an aggressive investment program to expand its 5G and broadband services.
With these investments, BCE expects to provide 5G service to 80% of the Canadian population by the end of this year. It also plans to add 900,000 new broadband connections this year. The company’s revenues from the media and roaming services segment may also see growth in the coming quarters. Amid its strong cash flow, the company is well positioned to continue paying dividends at a healthier pace. With a quarterly dividend of $0.92/share, its forecast yield is 5.92%. Thus, BCE would be a great buy for investors looking for income.