The Smartest Dividend Stocks to Buy With $150 Right Now

Investors don’t need a fortune to begin generating steady income. Many great dividend stocks are available at relatively low prices.

What are the smartest dividend stocks to buy right now if you only have $150 to invest? I can think of lots of good ones, but here are my three top picks.

1. Dominion Energy

It isn’t surprising to me in the least that many utility stocks have held up well during this year’s market turbulence. You can buy one share of my favorite utility stock, Dominion Energy (D -0.40%), for around $56. And you’ll get a big bang for your buck.

Dominion provides electricity service to 3.6 million homes and businesses in its home state of Virginia, as well as in North Carolina and South Carolina. It also provides natural gas service to roughly half a million customers in South Carolina. In addition, Dominion owns offshore wind and solar power facilities.

The company offers a forward dividend yield of 4.76%. Although Dominion cut its dividend in 2020, management appears firmly committed to at least funding the dividend at current levels going forward.

I don’t just like Dominion for its dividend, though. The utility company expects to grow its earnings per share by 5% to 7% on average each year. Data centers are a key component of Dominion’s growth strategy, particularly given that Virginia ranks as the largest data center market in the world.

2. Enterprise Products Partners

Technically, you can’t buy a share of Enterprise Products Partners (EPD 1.22%). That’s because it’s a limited partnership (LP). Instead of shares, Enterprise has units. But one unit will only cost you roughly $31.

Enterprise Products Partners is a leader in the North American midstream energy market. It owns more than 50,000 miles of pipelines that transport natural gas liquids (NGLs), natural gas, and crude oil. Enterprise can also store over 300 million barrels of NGLs, crude oil, petrochemicals, and refined products, plus 14 billion cubic feet of natural gas.

I suspect many income investors will love this LP’s forward distribution yield of 6.94%. Enterprise Products Partners also boasts an impressive 26-year streak of distribution increases.

Another big reason to like Enterprise Products Partners is its stability. The midstream leader has a strong balance sheet. Its business is largely recession-resistant and protected against rising inflation. As a result, Enterprise has been able to generate steady cash flow year in and year out, even during crises such as the Great Recession and the COVID-19 pandemic.

3. Realty Income

After buying one share of Dominion Energy and one unit of Enterprise Products Partners, you’d have around $63 left from an initial $150. That’s more than enough to scoop up a share of Realty Income (O 0.38%), which currently trades around $56 per share.

Realty Income ranks as the world’s seventh-largest real estate investment trust (REIT). It owns 15,627 properties in eight countries. The REIT’s tenants include some of the top companies, including 7-Eleven, Dollar General, and Walmart, and its client base is diversified, representing 91 industries.

REITs must return at least 90% of their earnings to shareholders as dividends to be exempt from federal income taxes. Unsurprisingly, Realty Income pays a juicy dividend. Its forward dividend yield currently stands at 5.76%. The company has also increased its dividend for 30 consecutive years. And there’s even more good news: Realty Income pays its dividends monthly rather than quarterly. The REIT recently announced its 659th consecutive monthly dividend.

What about growth? Realty Income checks that box, too. It has delivered 29 straight years of positive total operational returns. The total net lease addressable market in the U.S. is around $5.5 trillion. The addressable market in Europe is even bigger — $8.5 trillion. Realty Income also faces only two major rivals that target the European market.