3 Top Dividend Stocks Yielding Over 3% to Buy With $500 Right Now

3 months ago 38

Matt DiLallo, The Motley Fool

Sat, Apr 19, 2025, 7:30 AM 5 min read

Dividend stocks tin beryllium fantastic investments. The champion ones wage an charismatic and increasing watercourse of dividend income portion also delivering steadfast banal terms appreciation implicit the agelong term. That operation of income and maturation tin assistance investors steadily turn their wealth.

While determination are tons of dividend stocks retired there, Johnson & Johnson (NYSE: JNJ), Invitation Homes (NYSE: INVH), and NextEra Energy (NYSE: NEE) are 3 of the best. They presently connection dividend yields implicit 3%, much than treble the S&P 500's (SNPINDEX: ^GSPC) dividend yield. They besides person agelong histories of increasing their dividend payments, which seems apt to continue.

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Because of that, they could crook a $500 concern into an charismatic and increasing watercourse of dividend income, with the imaginable of meaningfully expanding the worth of that concern successful the coming years.

Johnson & Johnson's dividend presently yields 3.3%. At that rate, each $100 invested successful the institution would nutrient $3.30 of dividend income each year.

The healthcare elephantine has 1 of the healthiest dividends successful the world. It's 1 of lone 2 companies with an AAA-bond rating, which is higher than the U.S. government. The institution has a fortress equilibrium sheet, with lone $13.5 cardinal of nett indebtedness ($38.8 cardinal of currency against $53.3 cardinal of debt). That's a paltry sum for a $380 cardinal institution by market cap that generated $20 cardinal successful escaped currency travel past twelvemonth (easily covering its $11.8 cardinal dividend outlay).

The innovative medicine and aesculapian exertion institution precocious accrued its dividend by 4.8%, extending its maturation streak to 63 years in a row. That kept it successful the elite radical of Dividend Kings -- companies with 50 oregon much years of yearly dividend increases.

Johnson & Johnson is 1 of the apical investors successful probe and improvement crossed each industries ($17 cardinal past year). It also invests heavy successful strategical inorganic maturation (over $30 cardinal of acquisitions successful the past year). These investments should assistance enactment continued dividend growth.

Invitation Homes presently has a 3.4% dividend yield. The existent property concern spot (REIT) produces very dependable income to enactment its high-yielding payout. It owns oregon manages implicit 110,000 rental homes crossed respective apical lodging markets.

The landlord owns homes successful markets experiencing strong colonisation and occupation growth. That drives request for rental housing, keeping occupancy precocious portion enabling the REIT to steadily rise rents.