The Smartest Dividend Stocks to Buy With $2,000 Right Now

1 month ago 26

Bram Berkowitz, The Motley Fool

Sun, Apr 27, 2025, 3:35 PM 4 min read

After a astir 2.5-year bull market, the Trump administration's tariffs person crushed the market, starring to important volatility. Investors look to beryllium surviving and dying by the regular quality cycle, with the Dow Jones Industrial Average experiencing aggregate 1,000-point moves successful April.

In times of specified uncertainty, it tin beryllium a bully thought to look for stocks that make reliable and accordant passive income done dividends, truthful you tin interest little astir the banal terms successful the adjacent term.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now. Continue »

Here are the smartest dividend stocks to bargain with $2,000.

The existent property concern spot (REIT) Realty Income (NYSE: O) calls itself "The Monthly Dividend Company." While that whitethorn dependable cocky to some, it lives up to the title. Not lone does Realty Income wage a precocious 5.5% dividend yield, but it besides precocious paid its 658th consecutive monthly dividend and has accrued its dividend for 30 consecutive years.

Realty Income has a portfolio of much than 15,600 properties. It's a triple nett lease operator, which means that the institution rents properties retired to tenants that screen costs including maintenance, spot taxes, and insurance.

For the landlords, the setup seems similar a no-brainer. It tin besides beryllium beneficial for the renters due to the fact that they person much state to customize the properties and whitethorn besides beryllium capable to negociate little rents oregon longer rental contracts for taking connected the added work and costs.

Realty Income operates properties successful each 50 states successful the U.S., the United Kingdom, and respective different countries successful Europe. It besides focuses connected renting its properties to businesses that are nondiscretionary, debased terms point, and work oriented -- deliberation convenience, grocery, location improvement, and dollar stores. The institution has besides been expanding into different burgeoning sectors specified arsenic gaming and information centers, which are helping to substance expansion.

Realty Income regularly generates capable adjusted funds from operations (AFFO) to screen its dividend. AFFO is simply a peculiar metric that REIT investors usage to measure currency flow. Looking astatine AFFO is simply a bully mode to measure currency disposable for dividend distributions. In 2023 and 2024, Realty Income paid dividends adjacent to astir 75% and 76% of AFFO, respectively.

The iconic beverage institution Coca-Cola (NYSE: KO) has agelong been a stalwart of Warren Buffett's portfolio -- and it's casual to spot wherefore the Oracle of Omaha likes the company. In February, the institution approved its 63rd yearly consecutive dividend increase, putting it among an elite radical of dividend stocks. Coca-Cola has present paid much than $93 cardinal successful dividends to shareholders since 2010.