Looking to get winning stocks on the cheap. Here are three you can buy right now and hold for the long haul. Dividend is a long-term game, and it can be highly lucrative.
For dividend stocks, every counts because they gradually increase your annual income until, eventually, it's enough to cover your living expenses without needing to sell any s.
It's not the only way to invest, but it's an excellent blue for achieving and sustaining financial freedom.
There are countless dividend stocks you can choose from, but the best picks will be growing companies with healthy financials and a track record of successfully increasing their payout over time.
Here are three blue chip dividend stocks to consider. I believe their strong qualities and compelling valuations make them some of the smartest dividend stocks to buy for $1,000 today.
Image source: Getty Images. Realty Income Owning perty is one of the most time-tested ways to generate passive income. Realty Income (O -0.
28%) is a leading real estate investment trust (REIT), a company that acquires and leases perties for investment purposes.
REITs are typically great dividend stocks because they are required to distribute at least 90% of their taxable income as nonqualified dividends.
The company operates a diverse portfolio of more than 15,000 perties across the United States and parts of Europe, specializing in retail perties and consumer-facing es, such as convenience stores, restaurants, and gyms.
Its dividend track record is impeccable. It pays monthly (most companies pay quarterly), and management raised the dividend for decades without interruption. The dividend yield is 5.
6%, so investors receive a solid payout from the jump. Realty Income and other REITs borrow to fund new acquisitions, so higher interest rates are a headwind that weighs on the stock.
S currently trade at 13 times its guided 2025 funds from operations, a bargain price for a that has historically grown at a mid-single-digit pace over the long term.
NextEra Energy It's becoming apparent that as artificial intelligence (AI) advances, the world will require significantly more energy over the coming decades. NextEra Energy (NEE 1.
12%) will benefit as one of the largest electric utilities in the U. And a leading ducer of renewable energy.
A steady utility and rising demand for renewables fueled 30 years of uninterrupted dividend growth and impressive total returns. The utility has a backlog of apximately 27.
7 gigawatts and plans to invest $120 billion in energy infrastructure over the next four years to satisfy increased power demands.
This should support the company's long-term growth jections for 6% to 8% annualized earnings growth through 2027.
However, it seems that growth can extend well beyond that, with energy demand estimates continually rising.
The stock's price-to-earnings ratio, currently 20, is a fair valuation for a steadily growing company that pays a rising dividend with a yield of 3.
Holders can reasonably expect total annualized returns of around 10% to 11%, and that's before re dividends.
Anytime a long-term investor can buy a ven winner with a path to double-digit returns, it's a wise decision. Pool Corporation The past few years have been challenging for Pool Corporation (POOL -1.
93%), the world's largest distributor of swimming pools, equipment, and supplies. Consumers felt the squeeze of higher interest rates and living expenses.
A new in-ground pool can cost tens of thousands of dollars, so it's why demand could slow if consumers are struggling financially. The company built up a huge customer base.
Buying a new pool is akin to an initiation fee, a one-time up-front cost. But once you have a pool, you must continually treat, maintain, and repair it.
These recurring sales comprise the bulk of Pool Corporation's model. It helped the company pay and raise its dividend for 14 consecutive years.
Slumping sales of new pools are currently weighing on growth, and the stock yields 1. 6% today, its highest in over 20 years.
However, the dividend payout ratio is still less than half of its 2025 earnings estimates, so the dividend still has plenty of financial breathing room.
Over time, the growth will ly bounce back as consumer spending and sales of new pools rebound. It's often wise to buy these cyclical stocks during periods of slow growth.
Warren Buffett's Berkshire Hathaway saw value in its s; the company opened a stake in Pool Corporation late last year at a price higher than the stock currently trades at.
Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, NextEra Energy, and Realty Income.
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