1 Passive Income Stock to Buy While It's Cheap and 1 to Avoid
Bargain hunting for inexpensive dividend stocks is a good habit if you're trying to build a passive income stream from your investments. If you have the wherewithal to buy shares of companies that have taken a beating during the latest bear market, procuring stocks while their prices are lower than warranted means locking in higher dividend yields for years to come.
That's easier said than done, though. There's not much point to investing in a stock for its passive income potential if management is just going to cut the dividend before you can reap the rewards. With that in mind, here are two passive income candidates -- but only one of them is worth your money at the moment.
Viatris (NASDAQ: VTRS) is a relative newcomer to the passive income stock scene, having spun off from Pfizer in late 2020. Its line of business is predominantly manufacturing high-demand generic medications like Lipitor and Zoloft. Investors who buy the stock today are banking on its becoming an efficient and low-cost producer of medicines in the medium term, large-scale sales of which will generate returns for its shareholders. And with more than $17.8 billion in revenue for 2021, it's already well on its way.
Source Fool.com
