The Smartest Dividend Stocks to Buy for $1,000 Right Now
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Looking to get winning stocks on the cheap? Here are three you can buy right now and hold for the long haul.
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4 min read
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real estate
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July 8, 2025
07:00 AM
The Motley Fool
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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
The Motley Fool has a disclosure policy.
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