I all the time favour corporations that pay out comparatively small however rising quantities of passive earnings yearly in comparison with these providing gigantic however stagnant dividends.

My reasoning’s fairly easy. Constantly rising money returns are typically indicative of a enterprise in impolite well being. These within the latter camp are typically treading water.

Britvic

FTSE 250 agency Britvic (LSE: BVIC) is certainly one of three shares I’ll think about shopping for if and when funds turns into accessible. Though not utterly immune from wider financial wobbles, the drinks business tends to be extra resilient, on condition that its low-ticket gadgets are typically purchased out of behavior.

Certainly, this diploma of incomes predictability has allowed the proprietor of manufacturers corresponding to Tango and Robinsons to maintain throwing growing quantities of cash again at its traders almost yearly.

In 2024, the forecast yield at present stands at 3.4% — greater than that provided by the index as an entire.

However all this, one potential threat is that more and more health-conscious shoppers start turning away from fizzy/sugary drinks. Lowers gross sales may successfully deliver that run of annual rises to an finish. At greatest, it’d hinder the dimensions of future hikes.

With this in thoughts, it appears prudent to unfold my cash round different shares as effectively.

Bodycote

A few of that diversification may come from one other FTSE inventory that boasts strong dividend credentials, specifically warmth therapy processes supplier Bodycote (LSE: BOY).

To be clear, an organization that specialises in making steel “stronger, more durable, and more corrosion resistant” isn’t one which’s prone to ever seize the headlines.

Dividend-wise nevertheless, it’s simply the form of factor I’m on the lookout for. We’re speaking years and years of will increase, to not point out the odd particular fee alongside the way in which.

At the moment, this development reveals each probability of continuous. Boasting a forecast yield not dissimilar to Britvic, Bodycote’s money returns additionally look to be coated over twice by projected revenue.

Then once more, buying and selling right here’s arguably extra cyclical, with demand from sectors corresponding to vitality, automotive and aerospace dictated by basic financial sentiment.

Traditionally, Bodycote’s proven itself to be sturdy throughout such intervals. However the future gained’t essentially mirror the previous.

So what else may I purchase (when funds allow) to assist soften any blows?

Safestore

Final on my record is self-storage supplier Safestore (LSE: SAFE). Once more, Safestore operates in a very completely different area to the opposite two talked about right here. This might make for a much less unstable portfolio, at the very least in idea. As an investor, I additionally love the simplicity and predictability of a marketing strategy that entails charging individuals to deal with their muddle.

However, it’s no secret that something property-related has been within the doldrums for some time now. In keeping with this, Safestore’s share price has fallen 11% within the final 12 months. There’s an opportunity it may have additional to fall if the Financial institution of England retains delaying its first rate of interest reduce.

As long as I’m being paid to be affected person nevertheless, any drop within the worth of my stake isn’t prone to concern me. A 3.6% yield seems like first rate compensation, particularly as Safestore’s additionally gaining a fame as a dividend grower par excellence.

And if/when the UK market does begin motoring once more, there could possibly be a pleasant capital acquire too.