One of the best stocks to buy for a passive income!

I’m looking to generate robust passive income streams from my shares portfolio. I think this could be one of the best stocks to buy to do this.

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Earning money without having to work is the dream, right? Generating a healthy passive income — in other words wealth I can accrue without having to lift a finger — isn’t as fantastical as it may first sound.

I believe a great way to do this is to buy dividend stocks. The dividends these companies pay out of their profits can give your everyday expenditure a handy boost. If accrued, these passive income streams can also provide investors with a fat pot of cash to retire on.

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Taking steps to become financially independent

Creating a passive income with dividend stocks does require some work in the beginning. Some choice research is critical to help me separate the dividend stars from the investment traps. It also requires me to stump up some cash to buy these shares. This could involve the need to draw up a regular savings plan to build a portfolio.

But once up and running, a collection of decent dividend stocks could significantly boost my wealth levels. It may also help me to become financially independent. It’s a fact that many of Britain’s 2,000 ISA millionaires will attest to.

A rock-solid dividend stock

Right now, I think Primary Health Properties (LSE: PHP) could be one of the best stocks to buy for a passive income. Firstly, the company has a sound record of delivering dividends above the market average. It’s a trend that City analysts expect to continue too. For 2022 and 2023, the business yields an impressive 4.9% and 5% respectively.

Secondly, Primary Health Properties has a proud record of lifting yearly dividends. In fact, it’s lifted them every year for a quarter of a century. This reflects its ultra-defensive operations which allow the profits to roll in during good times and bad.

As the name suggests, this UK dividend stock develops and lets out primary healthcare properties such as GP surgeries. As a consequence, almost all of its rents are effectively paid out by the State, meaning that it doesn’t have to worry about collections.

Primary Health is also benefiting from a chronic shortage of medical facilities that is driving rents steadily higher. The business announced today that contracted rent rolls rose 4.1% year-on-year in 2021, thanks to this supply and demand imbalance.

A top passive income share to buy

I expect Primary Health to deliver great passive income streams long into the future. Demand for primary healthcare services is likely to keep growing as Britain and Ireland’s populations steadily age. It’s an opportunity Primary Health is seeking to exploit through continual expansion too. As of today, it has an acquisition pipeline worth a mighty £444m.

Like any share, Primary Health Properties isn’t without risk, of course. Changes to government healthcare policy could have a big impact on future profits. A failure to secure decent acquisitions could also adversely affect earnings and by extension shareholder dividends.

But, all things considered, I believe this UK dividend stock is still a top passive income share for me to buy.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Primary Health Properties. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

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