3 stocks paying me endless passive income!

Investing in dividend stocks is an idea I came up with when I wanted to increase my own passive income. Here are the top three stocks I own that pay double the income.

Mining boom

Humans have been mining since before the Bronze Age and we are not going to stop. Without iron ore, there would be no new airports or bridges. Without cobalt, there would be no advanced laptops or smart phones.

And importantly, there will be no green revolution without mining. Copper is necessary for the electrification of the planet. Iron ore (used to make steel) is needed for wind turbines. Lithium is an important component in electric vehicle (EV) batteries.

Shares for benefit

Which brings me to BlackRock World Mining Trust. This is the best investment trust that has created a portfolio of top global miners.

These are companies that produce metals and minerals that build the world around us – and more importantly, the greener environment we want to live in.

Today, the dividend yield on shares of PT. And the trust has increased its dividend at a compound annual growth rate (CAGR) of 20.7% over the past five years. That is also before inflation.

I also own lithium producer stocks Chemical and Mining Society of Chile (SQM). The company operates in Chile, which has the largest lithium reserves on Earth.

As a key ingredient in EV batteries, demand for lithium should increase over the coming decades. SQM stock is predicted to return 10% this year!

I like the dividend

The third deposit is McDonald’s (NYSE: MCD ), which yields a 2.3% dividend. Global fast food franchises have been increasing shareholder payouts for decades. This makes the Dividend Aristocrat.

In addition, the share price has increased by 73% in five years – beating the average return of the market. While most other businesses took a step back this year, McDonald’s continued to thrive. Plans to open 1,900 new locations by 2023!

The company’s free cash flow for the most recent financial year was $5.5bn – which is cash used to pay a rising dividend. And I think that’s set to continue.

The industry is eternal

I must note that every stock has risks. Despite long-term tailwinds supporting the mining boom, the industry remains cyclical. It ebbs and flows with the economic cycle. This means that dividends will be cut now and again because supply is greater than demand.

Also, consumers can cut down on trips to McDonald’s if they’re short on cash. That said, McDonald’s is a timeless brand. I was enjoying the food there as a child 30 years ago and I now take my young daughter (as an occasional treat, of course!).

So the company can weather the economic downturn. Indeed, it is a benefit. Consumers flock to restaurants for budget-friendly menus as inflation bites.

I think the company could continue to add a few pence here and there to menu items for the rest of my life. That will support profits and keep the dividend up.

And the green transition will take decades, meaning miners will have to produce more metal than ever before. That gives us great confidence that passive income from mining trusts and SQM will continue to flow into our brokerage accounts.