I hate to break it to you: it doesn’t look like we’re anywhere near a market bottom. Unfortunately, the market doesn’t care that we’ve been through a pandemic, a downturn, and generally an all around rough time financially. Historically, recessions mean we see a drop of around 40%. And right now, the TSX today is down by 11% from 52-week highs.
With that in mind, it’s a great time to consider creating a passive income portfolio. This can be done by finding strong dividend stocks that offer premium passive income and have a strong history of dividend growth. What’s more, they’ve proven in the past that they’ll recover quickly even from a recession.
So today, I’m going to provide you with two solid options to start off your passive income portfolio.
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BCE
Since the tech bubble burst, BCE (TSX:BCE) has been on a straightforward climb, increasing dividends again and again during that time. BCE stock has grown 150% since the 2002 recession, falling 48% during the 2009 recession before climbing upwards once more.
While the fall is scary, it’s important to note that, during a recession, BCE stock is likely to fall, true. It’s a telecommunications company, and everyone will want whatever returns they can get. But I argue that when BCE stock is dropping, you would do well to pick it up if you’re looking to create a passive income portfolio from dividend stocks.
BCE now offers the fastest internet speeds in the country. It has been rolling out 5G+, and climbing on the back of more wireline and wireless infrastructure. It has more room to grow, and it will grow. Although it might fall before that growth comes, thanks to a recession.
So have patience, and collect cash while you wait. After all, BCE stock currently offers a dividend yield at 6.37%. Here’s what investing $5,000 could look like should you buy as of writing.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| BCE | $60.55 | 83 | $3.87 | $321.21 | quarterly |
Brookfield Asset Management
Another great way to bring in passive income for your portfolio is through real estate investments. Now I’m not, of course, suggesting you go out and buy some condo to rent out, especially not in this market. No, invest in a diversified real estate property owner like Brookfield Asset Management (TSX:BAM).
When I say diversified, I mean it. BAM stock is one of the dividend stocks on the TSX today that has had time on its side. It has been around for well over 100 years. In that time, it has grown around the world, getting into every kind of real estate property imaginable. From student housing and parking garages to hotels in Las Vegas and energy assets, it has it all.
This provides the company with diversified revenue streams to allow it to come back even from a recession. It currently has a 4.14% dividend yield on offer as well, which is quite higher than you’ll usually get. So if you were to invest another $5,000 into BAM stock, here’s what you might get.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| BAM | $43.17 | 116 | $1.75 | $203 | quarterly |
