Passive income is something I’m looking to add to my portfolio in the next year. I’ve invested in stocks that pay dividends before, but it hasn’t been a focus of my investing strategy. Instead, I’ve primarily invested in companies I believe will grow over the decades until my retirement.
That’s something I’m looking to change as steady growth becomes uncertain during the current economic landscape. So, here are three stocks I’m considering buying in 2023.
BT Group
BT is one of the most dependable British companies for passive income. In recent times, its shareholders have been paid dividends of around 6% on average.
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I will be looking to add BT shares to my portfolio in 2023 on a regular basis. Like most investors, I like to make consistent monthly additions to my portfolio. I believe BT could be a prime candidate for a portion of that money.
The company’s shares are currently down around 50p since the end of July, from £1.76 to £1.26. At the same time, BT currently has an average price target of £1.97 for the next 12 months. Therefore, if I start investing regular amounts in BT, I could benefit from growth and income.
Intel
Intel (NASDAQ:INTC) is a stock that I already bought this year. I didn’t originally buy the stock for passive income, but I’m now looking at buying more to diversify the income my portfolio generates.
I invested in Intel because I think the stock is undervalued, with a price-to-earnings (P/E) ratio of around 9. That’s low, considering the company has a strong product outlook for the future and sound financials.
The dividend payout percentage from Intel has been rising consistently for the past year. The payments have been the same, $0.3650 every quarter of this year. However, that means the percentage has increased from 3.04% in January to 4.99% in September.
As such, I feel as though Intel shares are on sale. I can get a higher return on my dividend payments from buying in now than from when I bought in earlier this year.
I will definitely be making regular purchases of Intel stock to increase my stake throughout 2023.
Tesco
Back on our side of the pond, Tesco is another British company paying high dividends. Like BT and Intel, Tesco offers a dividend yield of around 5%.
However, I’m not only looking at the percentage of passive income that Tesco provides. I’m looking at the company because supermarket profits have been soaring.
From 2021 to 2022, Tesco’s profits trebled. As a result, I want to add Tesco to my regular investments because I believe it is a solid bet for dividends. Meanwhile, I hope it will be less of a risk during economic uncertainty than other companies offering similar yields.
I will be increasing my Intel investment and starting to invest in BT and Tesco on a regular basis in 2023.
