© Reuters. 3 passive income stocks to get you through this market correction
Motley Fool investors continue to dig deep and seek passive income stocks during today’s market correction. These stocks provide you with cash flow no matter what happens today. But not all of them will get you to the other side of the market correction.
This is why Motley Fool investors should look for companies that will succeed even after the market closes. You can’t just watch how companies behave during a market correction; you also need to see how they work under normal circumstances.
With that in mind, here are three passive income stocks to help you weather the market correction and beyond.
ECB TSX stock: (TSX:BCE)(NYSE:BCE) continues to hold the largest share of the telecommunications market. BCE shares have a market capitalization of $57 and continue to grow. This comes specifically from BCE Stock’s rollout of the 5G network and its fiber-to-the-home expansion.
Still, BCE shares are a bargain – one that has a dividend yield of 5.87% at the time of writing. The shares trade at 19.33 times earnings and have a leverage ratio (D/E) of 1.26. Its earnings continue to climb beyond estimates, even during this downturn. Still, stocks are down 5% year-to-date.
Over time, however, BCE shares have a strong track record of stock and dividend growth. Over the past two decades, stocks have gone up 137% and dividends have gone up 206%! This makes it one of the long-term passive income stocks where you will see stable, solid growth.
Manulife Financial (TSX:) Manulife Financial (TSX:MFC)(NYSE:MFC) is another strong passive income stock Motley Fool investors should consider on the TSX today. It provides financial services across the world, giving you a diversified global income. So when the economy rebounds elsewhere, you’ll see a boost in Manulife stocks, even though Canada hasn’t quite recovered yet.
Again, Manulife shares are trading at an incredibly low 4.76 times earnings and an ultra-low D/E of 0.36. So you can lock in a dividend yield of 6.15%, with shares down 8% at the time of writing. Again, the company has a solid track record of growth. That being said, the company fell sharply during the Great Recession in 2009. Since then, however, shares have risen 43%. At the same time, its dividend is up 154%.
NorthWest Healthcare Finally, one of the best passive income stocks has to be NorthWest Healthcare Properties REIT (TSX: NWH.UN). However, it doesn’t have the history that these other companies have. So, this one is more for Motley Fool investors looking for long-term income in healthcare real estate.
It is one of the passive income stocks that provides diversified income by buying real estate around the world. This real estate includes everything in the healthcare space, from parking garages to hospitals. Although the stock’s growth hasn’t been as strong, its growth through acquisitions and real estate purchases is compensating for it. And could set it up for superb growth in the future.
For now, it is one of the best passive income stocks with a yield of 6.71%. The shares trade at 6.17 times earnings and boast 0.85 D/E. The shares are down 11% year-to-date but up 13% over the past five years, and analysts believe they could climb much higher in 2022 alone.
Insane takeaway Of the three, I would have to say I would go with BCE shares among passive income stocks to exit a market correction. It certainly has the history and growth to support dividend growth. Moreover, it offers new and ever-expanding opportunities and ranks first among telecommunications companies.
However, the second best has to be the northwest. Although Manulife is a strong company and will emerge from this market correction, it can be hit hard by downturns. NorthWest, meanwhile, is in a vital industry with plenty of growth opportunities ahead. So if you want a little more risk, I would consider this company as well.
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Dumb Contributor Amy Legat-Wolfe holds positions in NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.