Unlock the Power of Dividend Investing with Just $100
When it comes to investing, every dollar counts. And with dividend stocks, a small amount of money can generate significant returns. Here are three smart dividend stocks to buy with just $100, offering attractive yields and strong growth potential.
Ares Capital: A High-Yielding Business Development Company
For around $23, you can snag a share of Ares Capital (NASDAQ: ARCC), a business development company (BDC) with a forward dividend yield of 8.4%. As a BDC, Ares Capital is required to distribute at least 90% of its earnings to shareholders, making it an attractive option for income-seeking investors. With a strong track record of dividend growth and a large addressable market, Ares Capital stands out from its peers.
Enterprise Products Partners: A Midstream Energy Leader
With around $34, you can purchase a unit of Enterprise Products Partners (NYSE: EPD), a midstream energy leader with a forward distribution yield of over 6.35%. This limited partnership has increased its distribution for 26 consecutive years, making it a reliable choice for income investors. Enterprise’s business model is also resilient in the face of recessions and turbulent times, with inflation-indexed contracts and stable cash flows.
Pfizer: A Dividend Aristocrat with Growth Potential
For under $27, you can buy a share of Pfizer (NYSE: PFE), a pharmaceutical giant with a forward dividend yield of 6.5%. Despite facing patent expirations and revenue headwinds, Pfizer’s dividend appears safe, and its shares are trading at a historically low valuation. With a promising late-stage pipeline and newer products driving growth, Pfizer offers a compelling combination of income and growth potential.
Maximizing Your Returns
By investing in these three dividend stocks, you can generate significant income and potentially strong returns. However, it’s essential to consider other investment opportunities as well. The Motley Fool’s Stock Advisor service provides a comprehensive blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. With a proven track record of outperforming the market, Stock Advisor can help you unlock the full potential of your investments.
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