“Money is no object.” You’ve likely heard the expression. The reality, though, is that money usually is an object — namely because it’s in relatively scarce quantity for most people.
Many investors don’t have tens of thousands of dollars to invest each month. And many are jittery about putting the hard-earned money they do have into speculative stocks that could flame out.
If you’re in these groups, you’ve come to the right place. You can invest in the stocks of well-run companies that pay solid dividends without having a fortune to start out with. If you’ve got $400, here are three fantastic dividend stocks to buy right now.
Innovative Industrial Properties
Innovative Industrial Properties (NYSE:IIPR) ranks as the most expensive of the three dividend stocks on the list, with its share price a little over $190. But I think you’ll like what your money buys for you with IIP.
The company is organized as a real estate investment trust (REIT). That means it must return at least 90% of taxable income to shareholders in the form of dividends. IIP’s dividend payout has quadrupled over the last three years. Its dividend yield stands at 2.9%.
While IIP’s dividend is great, that’s not why I think this is a stock to buy hand over fist right now. You see, IIP is a unique kind of REIT in that it focuses on the sizzling-hot medical cannabis industry.
IIP’s share price has more than quintupled over the last three years. I expect its great momentum will continue as the company buys more properties and leases them to cannabis operators. IIP currently only owns 72 properties in 18 states. My view is that it’s only the tip of the iceberg for this fast-growing REIT.
Calvin Coolidge was the U.S. president when AbbVie (NYSE:ABBV) first began paying dividends in 1924. The big drugmaker has paid a dividend every quarter since then (as part of Abbott and as a stand-alone entity since 2013). It’s only one dividend hike away from joining the elite group known as Dividend Kings — S&P 500 members that have increased their dividends for at least 50 consecutive years.
You can currently buy one share of AbbVie for less than $115. For that amount, you’ll get one of the juiciest dividends around. AbbVie’s dividend yield stands at 4.6%. You’ll also pick up a big pharma stock with pretty good growth prospects.
It’s important to know that AbbVie’s top-selling drug, Humira, faces biosimilar competition in the U.S. beginning in 2023. The company expects declining sales for the drug will weigh on it heavily in the first year that Humira loses exclusivity. However, AbbVie’s dividend shouldn’t be jeopardized at all.
Even better, the company expects to quickly return to growth. AbbVie’s product lineup includes several other drugs with solid momentum, including blood cancer drugs Imbruvica and Venclexta, as well as the heirs apparent to Humira — Rinvoq and Skyrizi.
Easterly Government Properties
Innovative Industrial Properties offers tremendous growth with its dividend. AbbVie provides an impressive track record. If you’re looking for rock-solid safety, though, you’re probably going to really like Easterly Government Properties (NYSE:DEA). And with Easterly’s share price of around $21, you’ll be able to scoop up several shares with your remaining cash after buying IIP and AbbVie.
Unsurprisingly, Easterly Government Properties owns and leases out… government properties. Like IIP, it’s organized as a REIT. Easterly’s main tenant is none other than Uncle Sam. As of March 31, 2021, the company owned 82 properties with all but two of them leased to U.S. federal government agencies.
Easterly’s dividend currently yields 4.8%. The company also has solid growth prospects. The REIT even recently raised its full-year earnings guidance because of its increased opportunities to acquire new properties.
CEO William Trimble characterized the company’s strength in nautical terms with Easterly’s Q1 update, stating: “The longevity and stability of future cash flows backed by the full faith and credit of the U.S. Government serves as a strong anchor to windward while still achieving meaningful results for our shareholders.” He’s likely right that Easterly’s strong relationship with the federal government should translate to smooth sailing over the long term.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
View more information: https://www.fool.com/investing/2021/07/02/got-400-3-fantastic-dividend-stocks-to-buy-right-n/