3 Reliable Dividend Stocks With Yields Above 5% You Can Buy With Less Than $100 Right Now

3 Reliable Dividend Stocks With Yields Above 5% You Can Buy With Less Than 0 Right Now

Investors looking to supplement their passive income streams with high-yielding dividend stocks have three excellent choices. If you have an extra $100 to invest, you could settle in with the dividends of Real estate income (NYSE:O), Altria Group (NYSE:MO)Or Pfizer (NYSE:PFE).

These three dividend payers have a long history of consistently increasing their dividends annually. Plus, they offer yields in excess of 5% at recent prices.

3 Reliable Dividend Stocks With Yields Above 5% You Can Buy With Less Than 0 Right Now

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No one expects huge revenue increases from these well-established companies. However, with solid advantages over their competitors, there’s a good chance they can maintain their earnings-increasing trend long enough to fuel your retirement dreams.

1. Real estate income

Realty Income is a real estate investment trust (REIT) which rents commercial property to well-established organizations such as Walmart, Dollar GeneralAnd Tractor supply company. At recent prices, the stock offers a dividend yield of 5.6% as well as some features that its shareholders appreciate.

Realty Income pays monthly dividends and you never need to wait long for an increase. This REIT increases its payouts every quarter and recently announced its 125th payout increase since it became a publicly traded company about 30 years ago.

Grocery stores, dollar stores and home improvement stores experience ups and downs, but they are not likely to collapse in an economic downturn. Additionally, their physical locations will likely remain relevant despite a continued shift toward online shopping.

In addition to selecting tenants who can reliably pay rent, Realty Income uses net leases that pass all the variable costs of owning the building, such as taxes and maintenance, to the tenant. This makes the company’s cash flow so stable that it enjoys an A3 credit rating of Moody’s.

Despite 30 years in business, there are still many independent commercial real estate properties that could fit into Realty Income’s portfolio. With a better credit rating than the vast majority of its peers, there’s a good chance this REIT can continue to attract quality tenants and grow its dividend until you retire.

2. Altria Group

Smoking has been in decline for decades, but that hasn’t stopped Altria Group from regularly increasing its dividend. Last August, the American tobacco giant, behind the leading brand Marlboro, announced its 58th dividend increase in 54 years.

Despite a long history of consecutive increases in annual dividend payouts, the market does not expect Altria Group’s streak to continue. The stock offers an ultra-high yield of 8.5% at recent prices.

The Food and Drug Administration (FDA) has banned flavored e-vapor devices, even though consumers of all ages seem to prefer them. The ban has led to a huge illicit market, but access to flavored vaporizers like Elf Bar will become more difficult, at least in the United States, where Altria does business.

In late 2023, the FDA began partnering with Customs and Border Protection to begin seizing shipments of illegal vaporizers. Since the start of the year, the company has also sent warning letters to 61 brick-and-mortar retailers and 22 online retailers for carrying illicit devices.

The FDA’s increased enforcement of the flavor ban is great news for Altria. Last year, it acquired NJOY, which is one of three FDA-cleared e-cigarette brands on the market today.

3. Pfizer

Shares of pharmaceutical giant Pfizer offer a dividend yield of 5.9% at recent prices. It has the shortest streak on this list, but after increasing its payout for 15 consecutive years, it is a very reliable dividend stock.

Pfizer’s revenue rose on sales of Comirnaty, a COVID-19 vaccine, and Paxlovid, an antiviral treatment for COVID-19. Unfortunately, demand for both products evaporated faster than expected. The stock is under pressure as trailing 12-month sales are down about $50 billion from their 2022 peak.

Pfizer has reinvested COVID-19 profits into new revenue streams, and the plan is working well. Despite losing most sales due to COVID-19, year-over-year revenue is now 45.5% higher than it was at the start of the pandemic.

Pfizer has reinvested profits generated by COVID-19 into new drugs that could allow it to continue increasing its payouts for many years. In addition to acquiring Seagen and its four marketed cancer treatments, the FDA approved nine new drugs from Pfizer last year. Adding a few stocks to a diversified portfolio and holding them throughout your retirement years seems like a smart move for most income-seeking investors.

Should you invest $1,000 in real estate income right now?

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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Moody’s, Pfizer, Realty Income and Walmart. The Motley Fool recommends Tractor Supply. The Motley Fool has a disclosure policy.

3 Reliable Dividend Stocks With Yields Above 5% You Can Buy With Under $100 Right Now was originally published by The Motley Fool

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