Business & Investment

Two Reliable Dividend Stocks to Generate Passive Income

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Stock market volatility was at record levels in 2021, but I don’t think it will change anytime soon. The stock market today is full of uncertainty, with dramatic price volatility already in 2022 and a new year of just two weeks.

As someone whose portfolio is biased towards Growth stock, I want to balance that this year. As a result, I’m consistently looking for some reliable dividend stocks that can generate passive income in my portfolio.

We have now identified the two dividend stocks at the top of the watch list. Dividends from both companies are profiting more than 3% at today’s prices.

If creating a new passive income stream is one of the financial solutions of the year, it is highly recommended to invest in at least one of these two. Dividend stock..

Dividend Stock # 1: Nova Scotiabank

If reliability is what you are looking for Nova Scotiabank (TSX: BNS)(NYSE: BNS) Is a dividend stock for you.

Banks of Canada have paid dividends to shareholders for nearly two centuries. We started paying dividends in 1833 and haven’t missed a year since then. In addition, the company has increased its dividend over the last 45 years, 43 years. Try to find another dividend stock with that type of track record.

In addition to reliable payments, no other dividend stock can match the Bank of Nova Scotia’s 4% yield. this is, TSX, But it is also the highest of all major Canadian banks.

I’m not saying that the financial sector is near the most exciting investment areas in the market, but you can trust it. And if you’re in the process of building a passive income stream, credibility is exactly what you want.

Dividend stock # 2: Sunlife

Sunlife (TSX: SLF)(NYSE: SLF) Another reliable dividend stock that passive income investors want to have on their radar.

Insurance stocks cannot match a series of payments or yields on the Bank of Nova Scotia. That said, many dividend stocks are not possible. With today’s share price, Sun Life’s annual dividend of $ 2.64 per share is a significant 3.7%.

It is growth that gives Sunlife an edge over Bank of Nova Scotia. Sunlife, including dividends, has significantly outperformed the Canadian stock market in the last five years. By comparison, the Bank of Nova Scotia has lagging behind market returns in recent years.

Despite SunLife’s strong growth performance over the last five years, stocks are still very reasonably priced.Insurance stocks are currently trading ridiculously It’s cheap Price earnings ratio is just above 10.

If you’re looking for long-term growth potential along with reliable dividends, Sun Life is your number one choice.

Stupid earnings

After experiencing a year of ups and downs in 2021, I am putting more emphasis on investing in passive income this year. We are looking for dividend stocks to balance the high growth companies in our portfolio.

If you’re looking to build a passive revenue stream through dividend stocks, it’s a good idea to focus on companies with high-yielding, reliable payments. And the two companies I reviewed definitely check both of these boxes.

Two Reliable Dividend Stocks to Generate Passive Income Two Reliable Dividend Stocks to Generate Passive Income

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