The Smartest Dividend Stocks to Buy With $1,000 Right Now
Tuesday, Nov 26, 2024 6:18 am ET
4min read Investing in dividend stocks can provide a steady income stream and potential long-term growth. With a $1,000 budget, you can diversify your portfolio by allocating funds across several high-yielding dividend stocks. This article explores some of the smartest dividend stocks to consider for your investment.
Before investing, it's essential to evaluate the dividend sustainability and growth potential of a stock. Key metrics to consider include dividend yield, dividend payout ratio, dividend growth rate, return on equity (ROE), earnings per share (EPS) growth, free cash flow (FCF) payout ratio, debt-to-equity (D/E) ratio, and economic moat.
1. Realty Income (O) - Dividend Yield: 5.4%, Dividend Risk Score: A
- Realty Income is a triple-net REIT with a strong track record of dividend growth. It has increased its dividend annually for 29 years and offers an attractive yield.
2. CVS Health (CVS) - Dividend Yield: 3.3%, Dividend Risk Score: A
- CVS Health is a large pharmacy retailer, pharmacy benefits manager, and health insurer. It offers a solid dividend yield and has increased its payout annually for the past 13 years.
3. ExxonMobil (XOM) - Dividend Yield: 3.7%, Dividend Risk Score: A
- ExxonMobil is a leading integrated oil and gas company with a long history of dividend growth. It has increased its dividend annually for 38 years.
4. PepsiCo (PEP) - Dividend Yield: 3.1%, Dividend Risk Score: A
- PepsiCo is a global food and beverage company with a strong dividend track record. It has increased its dividend annually for 49 years.
5. Ares Capital (ARCC) - Dividend Yield: 9.5%, Dividend Risk Score: B
- Ares Capital is a business development company (BDC) specializing in providing capital to middle-market businesses. It offers a high yield and has increased its dividend annually for 14 years.
6. Horizon Technology (HRZN) - Dividend Yield: 11.1%, Dividend Risk Score: B
- Horizon Technology is a venture debt specialist with a high yield and a history of dividend growth. It has increased its dividend annually for the past five years.
7. Enterprise Products Partners (EPD) - Dividend Yield: 7.2%, Dividend Risk Score: B
- Enterprise Products Partners is a midstream energy company with a strong dividend track record. It has increased its dividend annually for 44 years.
Before investing, consider your risk tolerance and consult with a financial advisor. Keep in mind that this portfolio is suggestions only and may not be suitable for all investors. Regularly review your portfolio and stay informed about the companies you invest in.
In conclusion, investing in dividend stocks can provide a steady income stream and potential long-term growth. By considering key metrics and diversifying your portfolio across multiple sectors, you can build a solid income stream while positioning yourself for long-term growth. The smartest dividend stocks to buy with $1,000 right now include Realty Income, CVS Health, ExxonMobil, PepsiCo, Ares Capital, Horizon Technology, and Enterprise Products Partners.
Before investing, it's essential to evaluate the dividend sustainability and growth potential of a stock. Key metrics to consider include dividend yield, dividend payout ratio, dividend growth rate, return on equity (ROE), earnings per share (EPS) growth, free cash flow (FCF) payout ratio, debt-to-equity (D/E) ratio, and economic moat.
1. Realty Income (O) - Dividend Yield: 5.4%, Dividend Risk Score: A
- Realty Income is a triple-net REIT with a strong track record of dividend growth. It has increased its dividend annually for 29 years and offers an attractive yield.
2. CVS Health (CVS) - Dividend Yield: 3.3%, Dividend Risk Score: A
- CVS Health is a large pharmacy retailer, pharmacy benefits manager, and health insurer. It offers a solid dividend yield and has increased its payout annually for the past 13 years.
3. ExxonMobil (XOM) - Dividend Yield: 3.7%, Dividend Risk Score: A
- ExxonMobil is a leading integrated oil and gas company with a long history of dividend growth. It has increased its dividend annually for 38 years.
4. PepsiCo (PEP) - Dividend Yield: 3.1%, Dividend Risk Score: A
- PepsiCo is a global food and beverage company with a strong dividend track record. It has increased its dividend annually for 49 years.
5. Ares Capital (ARCC) - Dividend Yield: 9.5%, Dividend Risk Score: B
- Ares Capital is a business development company (BDC) specializing in providing capital to middle-market businesses. It offers a high yield and has increased its dividend annually for 14 years.
6. Horizon Technology (HRZN) - Dividend Yield: 11.1%, Dividend Risk Score: B
- Horizon Technology is a venture debt specialist with a high yield and a history of dividend growth. It has increased its dividend annually for the past five years.
7. Enterprise Products Partners (EPD) - Dividend Yield: 7.2%, Dividend Risk Score: B
- Enterprise Products Partners is a midstream energy company with a strong dividend track record. It has increased its dividend annually for 44 years.
Before investing, consider your risk tolerance and consult with a financial advisor. Keep in mind that this portfolio is suggestions only and may not be suitable for all investors. Regularly review your portfolio and stay informed about the companies you invest in.
In conclusion, investing in dividend stocks can provide a steady income stream and potential long-term growth. By considering key metrics and diversifying your portfolio across multiple sectors, you can build a solid income stream while positioning yourself for long-term growth. The smartest dividend stocks to buy with $1,000 right now include Realty Income, CVS Health, ExxonMobil, PepsiCo, Ares Capital, Horizon Technology, and Enterprise Products Partners.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.