The Smartest Dividend Stocks to Buy With $1,000 Right Now

2 months ago 32

Unlock banal picks and a broker-level newsfeed that powers Wall Street.

Selena Maranjian, The Motley Fool

Sun, Mar 23, 2025, 6:45 AM 5 min read

Opinions volition ever differ, but our existent economical situation seems alternatively uncertain to me, with tariffs, tariff wars, the menace of inflation, and a batch of investors with banal marketplace jitters. So if you're looking to put successful stocks, I suggest taking a adjacent look astatine dividend payers.

Why dividend-paying stocks? Well, due to the fact that to immoderate degree, they've been prequalified. Sure, maturation stocks are exciting, but they tin beryllium much volatile than slower growers, and they tin beryllium importantly overvalued, too, and ripe for a pullback.

Someone is holding a camera, facing us, and smiling broadly.

But a institution mostly has to turn capable to go somewhat established with reasonably dependable currency procreation earlier its absorption volition perpetrate to paying a regular dividend. After all, nary institution wants to extremity up having to trim oregon destruct a dividend.

Here are 4 dividend payers to see for your portfolio -- whether you person $1,000 to walk oregon $100,000.

Let's commencement with Constellation Brands (NYSE: STZ). One crushed to see it is that its banal appears undervalued astatine caller levels. Its caller forward-looking price-to-earnings (P/E) ratio of 12, for example, is good beneath the five-year mean of 19. Its dividend, meanwhile, precocious yielded 2.25%. That's not a immense dividend yield, but it's not nothing, either, and it's increasing -- by an yearly mean of 6% implicit the past 5 years.

Constellation Brands is successful the concern of making and selling alcoholic beverages, chiefly successful the U.S., Mexico, New Zealand, and Italy. Its brands see Corona, Modelo, Robert Mondavi, High West, and Casa Noble.

Some are disquieted astir the company's prospects owed to tariffs and commercialized wars, but nary different than Warren Buffett's company, Berkshire Hathaway, has been a purchaser of the banal recently.

Western Union (NYSE: WU) is simply a acquainted name, facilitating money transfers crossed much than 200 nations and moving with much than 130 currencies. It's connected to billions of slope accounts and millions of integer wallets and outgo cards.

Western Union whitethorn not beryllium the archetypal fintech banal you deliberation about, but it's engaged successful that realm, and sports a abdominous dividend output -- precocious 8.7%. The dividend hasn't been increasing briskly, but its existent level is rather generous, and adjacent if it were halved, it would inactive beryllium higher than galore payouts.

Western Union is not a slam-dunk buy, though, successful portion owed to our uncertain economy. Much of its concern involves helping immigrants successful developed nations nonstop wealth backmost to families successful little developed nations. If galore extremity up moving backmost home, the institution could suffer.