Passive income seekers have been looking to dividend stocks a lot lately. This comes mainly from the risks in the market right now. The volatility remains, with growth stocks certainly not what they were in 2020, or even in 2021. So now, it’s time to find some safety and security.
That can certainly be done, but you need to find the right passive income stocks. So today I’m going to go over two safe passive income stocks that can bring in $5,000 per year, when invested right!
CIBC stock
First, you’re going to need a Big Six Bank if you want safety and security. Not just now, but decades from now. The Canadian banks performed well during the last several market dips and crashes, coming back within a year during the March 2020 crash. And while they all trade near all-time highs, they still provide a lot of value.
That’s especially true when you want passive income. And none of the Big Six Banks are better than Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM). CIBC stock offers Motley Fool investors the highest yield of the bunch, with a 4.01% yield as of writing. That’s $6.44 per share annually. Furthermore, it trades at just 11.53 times earnings. That makes it well within value territory, despite continuing to trade at all-time highs.
Nutrien stock
Next up, passive income seekers need something everyone will continue to need forever. And that will always be food. No matter what happens, the world needs to eat. Yet there is less and less arable land. That means crop nutrients continue to be a necessity, especially as climate change adds to the damage.
That’s why Nutrien (TSX:NTR)(NYSE:NTR) is a solid long-term option. It continues to corner the crop nutrient market, and saw a massive increase in e-commerce use. It’s now the farmer assistant of the future, connecting farmers around the world with the crop nutrients they need. What’s more, it provides a solid dividend of 2.49%, or $2.44 in passive income on an annual basis. And again, it trades at a valuable 13.79 times earnings.
Bring in that passive income!
Now, how do you get to that $5,000 per year? You start breaking it down by what you want to get out of each stock. So let’s say you want to bring in $3,000 per year from CIBC stock, and $2,000 per year from Nutrien stock. Both are strong passive income stocks that you can hold for decades and look forward to both returns and dividend payments.
To do this, a Motley Fool investor would need to invest $74,354 in CIBC stock and $78,688 in Nutrien stock. That would bring in that $5,000 to your portfolio immediately. If you have the cash available, great! But if you don’t, you can always start by feeding a little bit at a time until you get there. These are protective, defensive stocks that will continue to be great buy no matter what happens. Furthermore, these are passive income stocks that will last a lifetime.
