Top Dividend Shares Worth Investing in for Only $100 at Present
Investing in dividend stocks can be a smart move, especially if you're looking to grow your money over the long term. And, you don't need a massive investment to get started. Many top-notch dividend stocks are currently trading below the $100 mark.
This strategy has proven fruitful in the past. According to Ned Davis Research and Hartford Funds, a $100 investment in dividend-paying stocks fifty years ago would have grown into around $8,750. That's ten times more than an investment in non-dividend payers, which would have only amounted to less than $850. The best performers were companies that increased their dividends, with these stocks growing an initial $100 investment into over $14,100.
So, if you're interested in investing in dividend stocks, here are three fantastic options currently under $100:
- Realty Income (O) - Realty Income is a real estate investment trust (REIT) with a strong track record of dividend growth. It has increased its dividend 128 times since its initial public offering (IPO) in 1994, and has maintained this trend for 30 consecutive years. Realty Income's dividend yield is currently at 5.8%, which is more than double the S&P 500's 1.2%.
- Brookfield Infrastructure (BIPC/BIP) - Brookfield Infrastructure is a globally diversified infrastructure operator with a focus on utilities, energy midstream, transportation, and data. It has increased its dividend every year since its inception 15 years ago and still maintains a compound annual growth rate of 9%. Brookfield Infrastructure believes it is capable of growing its high-yielding dividend at a 5% to 9% rate annually.
- Medtronic (MDT) - Medtronic is a medical technology company with a remarkable record of dividend growth. It has increased its dividend for 47 consecutive years, and at a 16% compound annual growth rate during that period. Despite significant investments in research and development, Medtronic is able to generate ample free cash flow to support its high-yielding dividend of 3.1%.
These stocks aren't just impressive because of their dividend yields, but also due to their strong records of dividend growth. As a result, they seem like excellent investments for the future.
Sources:
- Ned Davis Research and Hartford Funds
- Yahoo Finance
Investing in these dividend stocks can provide a significant return on your finance, as evidenced by the growth of a $100 investment in dividend-paying stocks fifty years ago to around $8,750. To continue reaping these benefits, you might consider investing in Realty Income, Brookfield Infrastructure, or Medtronic, all of which have impressive histories of dividend growth.