When it comes to investing for passive income, I believe the best approach is to look for UK dividend stocksSponsored Product with a strong record of growing annual dividends. With that in mind, I am currently shopping for stocksSponsored Product to add to my portfolio, and there are two that stand out as potential buys:

Grainger

Residential landlord Grainger (LSE:GRI) is a stock I have had my eye on for some time. While its current fiscal year dividend yield of 2.5% may not seem that impressive, the firm has a strong record of growing annual dividends, with the exception of a temporary reversal during the pandemic.
Market conditions have been favourable for Grainger, with the UK experiencing a rapidly growing population, weak housebuilding rates, and a continued exodus of buy-to-let investors from the market. As the UK’s largest-listed landlord, Grainger has taken advantage of this environment, with its portfolio of approximately 10,000 homes experiencing like-for-like rental growth of 6.1% during the four months to January.
Grainger is continuing to expand, too, with a pipeline of around 7,000 new homes. As such, I believe that profits will continue to grow strongly for this FTSE 250 firm in the years to come.

Centamin

Investing in gold stocksSponsored Product, such as Centamin (LSE:CEY), presents a different set of risks to investors. When the price of gold falls, profits at these businesses can quickly decrease. Furthermore, operational problems can emerge at any time to push costs up and destroy revenue forecasts. Despite these risks, I believe that Centamin is still an attractive buy for investors.
Centamin has a low valuation, as evidenced by its price-to-earnings (P/E) ratio of eight times for 2023. Additionally, it offers a meaty 6.2% forward dividend yield. I believe that investing in gold mining shares is a good idea at any time as insurance for when things get tough. Having built a base around $2,050 per ounce, further heady gains could be around the corner.
As a gold miner, Centamin is ramping up production at its flagship Sukari mine in Egypt, and it also owns several exciting exploration assets in other parts of Africa. As gold metal prices move close to new record highs, I believe that opening a position in Centamin today could be especially wise. With ongoing worries over the global economy, speculation of central bank rate cuts, a weak US dollar, and a tense geopolitical backdrop, there could well be a spike in demand for the safe-haven asset in the near future.