Creating a $5,000 Bulletproof Passive Income Portfolio

Investors might also want to consider Royal Bank of Canada (RBC) stock as a defensive bank investment for safe dividends and returns. RBC is one of the largest banks in Canada, with a market cap over $150 billion. It has an enviable track record of rewarding shareholders through consistent dividend payouts and share buybacks.

As per recent reports, RBC's common equity tier 1 ratio (CET1), which gauges a bank's financial strength, stood at 12.8%, indicating that it has robust capital buffers to absorb potential losses. This strong balance sheet position coupled with its diversified business model makes it well-positioned to weather economic uncertainties.

The bank’s core retail banking operations continue to perform well and deliver solid results despite challenges posed by low-interest rates and increased competition from digital-first players in the Canadian banking space. Moreover, its wealth management division continues to see higher inflows due to growing demand for personalized investment advice amid volatile markets.

RBC offers an attractive yield of approximately 3.6%. The company has consistently paid out dividends since 1870 and grown them annually for the last decade at an average rate of about 7%. Given its steady earnings growth outlook driven by sustainable revenue streams across different segments, we believe this trend will likely continue making it a reliable income source for investors looking for stable cash flows.

In addition to this impressive dividend profile, there are compelling reasons why RBC could be considered undervalued today offering good upside potential along with regular income stream. Its price-to-earnings ratio is around 11 times trailing earnings - lower than the industry average suggesting that shares may be available at discount relative their intrinsic value.

Moreover, analysts have given positive forecasts on RBC’s performance indicating room for appreciation in stock prices going forward which can further enhance total returns on investment when combined with dividends received regularly by shareholders.

Another factor worth considering is strategic acquisitions made by RBC in recent years. These have helped the bank to diversify its revenue sources and enhance profitability by tapping into high-growth markets.

In conclusion, investors seeking monthly passive income might want to include RBC stock as part of their portfolio. This defensive banking giant offers an attractive yield, robust financial health, a diversified business model and growth potential - all elements that make it worth considering for those looking for safe dividends and returns.

Remember, investing is not just about immediate returns but also about building long-term wealth. So consider your own risk tolerance levels and investment goals before making any decisions.