3 passive income stocks trading at rock bottom prices!

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Passive income is the holy grail of investing. It requires minimal input from me – beyond stock picking – and it provides me with a steady, albeit not guaranteed, income.

Today I’m looking at passive income stocks trading at rock bottom prices. In addition to handsome dividend yields, inflated by falling stock prices, I think these stocks also have medium to long-term growth potential.

So let’s take a closer look at three reverse dividend stocks I would buy today.

Hargreaves Lansdown

Hargreaves Lansdown (LSE:HL) is a supermarket platform for stocks and funds. The company, down a whopping 41% over the past year, currently has a dividend yield of 4.6%.

The stock slumped as it struggled to maintain its pandemic-era momentum through 2022. But evidence suggests it is outperforming other financial services companies as it saw net inflows steady flow of cash and new customers during the first six months of the year.

While Hargreaves has a strong passive income offering. It is also, without doubt, one of the most promising growth stocks in the FTSE100. More and more people are taking control of their investments and Hargreaves is the UK’s best platform to do so.

Although a deep recession can hurt new business, in the long run, I support Hargreaves.

Close the group of brothers

Close the group of brothers (LSE:CBG) is a UK-based merchant bank. The FTSE250 provides securities trading, lending, custody and wealth management services. It has fallen 33% over the past 12 months, pushing the dividend yield to 5.8%.

RBC recently noted that Close Brothers Group has defensive qualities, as it has a consistent track record of earnings, even during recessions. In fact, its loan portfolio has continued to grow despite rising interest rates and the cost of living crisis.

In the first 11 months of its fiscal year, the annualized net interest margin remained solid at 7.8%, up slightly from the 7.7% recorded last year.

Again, a deep recession and much higher interest rates could dampen demand for its services. But higher rates also translate to higher margins. I’ve bought this stock before for the dividends and defensive qualities.

Vistry Group

Homebuilders have taken a hit over the past year. Vistry Group (LSE:VTY) is down 40%, although 2022 is expected to be a banner year for the developer.

Vistry, formerly known as Bovis Homes, expects pre-tax profits for the year to be around £417m, despite an exceptional £71.4m related to the legacy coating and fire safety. This projected profit is £98 million before 2021 and broadly equal to the pre-tax profits made in 2018, 2019 and 2020 collectively. So it’s definitely a growing developer.

House prices are expected to come down a bit in the coming months as interest rates rise and the cost of living crisis worsens. And that will be a problem for developers and their margins. But long term, I see a lot of demand for the property. That, and Vistry’s 8.1% dividend yield, is why I buy this stock.