Smart Investing on a Budget: Top Dividend Stocks to Buy Now
When funds are limited, making smart financial decisions is crucial. While you may need to cut back on discretionary spending, investing doesn’t have to take a backseat. With as little as $150, you can tap into the lucrative world of dividend stocks, generating a steady income stream without breaking the bank.
Ares Capital: A High-Yielding BDC
For less than $44, you can purchase two shares of Ares Capital (NASDAQ: ARCC), a leading business development company (BDC). Ares provides financing to middle-market businesses, generating significant revenue. As a BDC, it’s required to distribute at least 90% of its earnings to shareholders as dividends, making it an attractive option for income investors. With a forward dividend yield of nearly 9% and a 15-year track record of stable or growing dividends, Ares Capital is an excellent choice.
Enbridge: A Midstream Energy Powerhouse
With another $45, you can buy one share of Enbridge (NYSE: ENB), a dominant midstream energy company in North America. Enbridge operates pipelines, natural gas storage facilities, and is expanding its renewable energy operations. Its impressive 29-year dividend growth streak and 6.2% forward dividend yield make it an attractive option for income seekers. Plus, its contracted cash flows and minimal exposure to commodity price fluctuations ensure a steady dividend payout.
Realty Income: A Monthly Dividend Payer
After investing in Ares Capital and Enbridge, you’ll have enough left over to purchase one share of Realty Income (NYSE: O), a global real estate investment trust (REIT). As a REIT, Realty Income is required to distribute at least 90% of its profits as dividends, making it an attractive option for income investors. Its 30-year dividend growth streak, 5.58% forward dividend yield, and monthly dividend payments make it a compelling choice. With a highly diversified real estate portfolio and strong growth prospects, Realty Income is an excellent addition to your portfolio.
By investing in these three dividend stocks, you’ll be well on your way to generating a steady income stream without breaking the bank. Remember, smart investing is about making the most of your money, regardless of your budget.
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