Having your bills paid by the income produced from your investments can be a wonderful thing. Many investors, in turn, are on the hunt for ways to earn more passive income in 2023.
Read on to learn about two stocks that can help you generate more cash from your investment portfolio. Both pay sizable dividends, and their value-priced shares are poised to rally in the year ahead.
Ford Motor Company
If you'd like to earn passive income from the surging growth of the electric vehicle industry, look no further than Ford Motor Company's (F 0.47%) stock. The venerable automaker's EVs are winning accolades and selling like hotcakes, yet investors apparently haven't noticed.
Just days ago, Ford's all-electric F-150 Lightning pickup was named the North American Truck of the Year by a panel of 50 automotive journalists, based on "innovation, design, safety, performance, technology, user experience, driver satisfaction, and value."
The F-150 Lightning is also proving popular among drivers. Since its debut in May, it's the best-selling electric truck in the U.S. Combined with sales of its popular Mustang Mach-E electric sports car, Ford has quickly become the No. 2 EV maker in the U.S. behind only Tesla.
To meet the booming demand for its vehicles, Ford is ramping up production. The auto giant expects to build 600,000 EVs annually by the end of 2023 and as many as 2 million by 2026.
Yet despite these impressive growth prospects, Ford's shares fell 44% in 2022. Supply chain disruptions, rising interest rates, and recession fears contributed to the decline. But these macroeconomic challenges are likely to be temporary, while Ford is set to enjoy EV-led growth well into the next decade.
Moreover, Ford's shares can now be had for 7.5 times its projected earnings for 2023. That's a fantastic price for an EV leader that's forecast to grow its per-share profits by more than 13% annually over the next five years.
Better still, Ford is committed to passing profits on to shareowners via dividends. The automaker's stock currently yields a solid 4.7%.
Medical Properties Trust
If you're looking for an even bigger dividend to help maximize your passive income, check out Medical Properties Trust (MPW 2.65%). The healthcare-focused real estate investment trust (REIT) currently offers investors a whopping 8.5% dividend yield.
MPT is one of the largest hospital owners in the world, with roughly 435 facilities and 44,000 licensed beds spanning four continents. MPT rents its properties to healthcare companies under long-term leases, with a current average maturity of 17.6 years. These leases produce bountiful and reliable cash flow, which MPT passes on to its shareholders via a steadily rising dividend.
MPW Dividend data by YCharts
Despite this impressive long-term operational performance, MPT's stock price sank 53% last year. Fears that rising interest rates would make it more expensive for MPT to acquire new properties, as well as concerns that some tenants could find it difficult to afford their leases, contributed to the REIT's decline.
MPT's shares now trade for about 7.5 times its funds from operations (FFO) for 2022. That's quite a bargain for this proven cash generator, but this deal might not last for long.
With multiple signs suggesting that inflation may have already peaked, interest rates could soon stabilize and potentially even trend lower in the coming year. Thus, investors' fears regarding the potential for MPT to face higher financing costs might soon subside.
Additionally, just last week, a favorable bankruptcy court ruling showed that MPT's lease agreements provide it with "strong protection from operator financial challenges," according to CEO Edward Aldag. The ruling should help more investors see that MPT's business model can hold up well even if some of its tenants struggle. Better still, many of MPT's tenants are set to benefit from increased payment rates from Medicare, which should strengthen their ability to pay their lease agreements on time and in full.
These positive trends have helped to drive the REIT's shares up more than 20% already in 2023. But this rally might just be getting started. Consider buying MPT's stock today, so you can position yourself to profit from any further rebound in its share price, all while collecting ample passive income along the way.
