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Looking for income stocks that could deliver a stable passive income even if the economy sinks? Here are two I think savvy investors should consider.
Golden returns
Gold stocks are in high demand as precious metals soar to new peaks. Bullion prices rose to new highs of $3,582 in recent hours. And, they are tipped for further gains on a range of macroeconomic and geopolitical factors.
Of course, gold prices can go down as well as up. And any retracement could put producer profits and therefore dividends under pressure. But there is a range of supportive factors, from rising inflation and geopolitical tension to worries over government debts. I think further progress is likely.
For passive income investors, I think Serabi Gold (LSE:SRB) demands serious attention in this climate. It hasn’t paid a dividend before, but in April announced plans to distribute 20%-30% of free cash flow through dividends or share buybacks.
This means City analysts are tipping a maiden annual dividend of 8.2p per share for 2025. And, as a consequence, Serabi shares carry a healthy 3.9% forward dividend yield.
Future dividends should be boosted by lower-cost production over the next decade that improves cash flows. The company’s all-in sustaining costs (AISC) rose slightly year on year to $1,792 per ounce in the first half. But new output from its high-yielding Coringa asset in Brazil from now until 2034 should pull this sharply lower.
The average AISC over the life of the mine is predicted at $1,241 per ounce.
A lot could happen to the gold price over the next 10 years, of course. The long-term trajectory of gold prices is impressive — they’ve risen 176% during the past decade. I feel Serabi looks well positioned to deliver attractive dividends.
Dividend trust
Food retailers like Tesco and Sainsbury’s can also be resolute dividend payers even during downturns. The predictability of food demand helps support earnings, though for me, the impact of severe competition on sales and margins means they are stocks I’m not tempted to buy.
I think Supermarket Income REIT (LSE:SUPR) could be a better way to consider targeting a passive income from this defensive industry. It rents out retail space to several of the UK’s biggest grocery chains (and Carrefour in France), providing a stable stream of income it can then distribute to shareholders.
Under real estate investment trust (REIT) rules, it must pay at least 90% of annual profits out in the form of dividends. For this financial year (to June 2026) its dividend yield stands at 7.9%, towering above the FTSE 100 average of 3.3%.
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Theoretically, Supermarket Income’s dividends could disappoint if its tenants fail on their rental obligations. But in reality, the probability of this happening is remote — indeed, it’s achieved 100% rent collection since its creation in 2017.
I’d be more concerned about future earnings as internet grocery shopping increases in popularity. However, the trust’s decision to focus on ‘omnichannel’ assets for both physical and online customers significantly mitigates this threat.
