3 No-Brainer Dividend Stocks to Buy With $2,000 Right Now

Investing in dividend stocks is often hailed as a smart strategy, especially in today’s dynamic financial landscape. For those seeking steady income alongside growth, focusing on dividend-paying stocks can be a comfortable niche. According to recent data, dividend stocks have outperformed non-dividend payers significantly over the past 50 years—showcasing an annualized total return of 9.2% compared to just 4.3% for non-dividends payers. This trend exemplifies how investing in stocks with a reliable dividend payout can yield both security and substantial returns.

If you have $2,000 to invest right now, you might want to consider three particular stocks which are often described as “no-brainers” due to their solid track record of increasing dividends: Prologis (NYSE: PLD), Invitation Homes (NYSE: INVH), and NNN REIT (NYSE: NNN). Each of these options not only brings a healthy dividend yield but also strong growth potential.

### Prologis: A Leader in Real Estate Investment Trusts (REITs)

Prologis has made a name for itself as one of the largest REITs in the world, focusing on logistics properties. With an impressive portfolio that supports $2.7 trillion worth of goods flowing through its distribution centers each year, Prologis holds a strategic position in global commerce. The company’s properties are in high demand, underpinning a robust occupancy rate and impressive rent growth.

Currently, Prologis offers a dividend yield of 3.7%, which stands in stark contrast to the S&P 500’s yield of just 1.3%. Over the past five years, Prologis has grown its dividend at an annualized rate of 13%, significantly outperforming the average growth rates for the S&P 500 and other REITs. The firm’s growth story isn’t just about its current performance; Prologis has the financial strength to invest heavily in portfolio expansion. With a substantial land position ready for new warehouse developments and strategic acquisitions on the table, there’s every reason to believe their dividend could continue to rise.

### Invitation Homes: Consistent Growth in Single-Family Rentals

Another interesting option for dividend investors is Invitation Homes, a REIT that focuses on managing single-family rental homes. With a portfolio of over 110,000 rental properties across major housing markets, particularly in the growing Sun Belt region, Invitation Homes is positioned to benefit from increasing job opportunities and population growth. These factors drive demand for rental housing, solidifying high occupancy rates and driving rental prices upwards.

The company has proven its reliability by increasing its dividend every year since going public in 2017, with a current yield of 3.4%. Furthermore, Invitation Homes continues to expand its portfolio by acquiring new properties, ensuring that its cash flow remains strong enough to support ongoing dividend increases. With over 1,800 homes currently under construction, the REIT is poised for further growth in both its property base and dividend payout.

### NNN REIT: Stability Through Long-Term Leases

Lastly, NNN REIT strikes a chord with investors prioritizing income stability. This REIT focuses on owning single-tenant retail properties secured by long-term, triple-net leases. These types of leases are advantageous because they require tenants to take on operating costs like maintenance and property taxes, leading to very stable cash flows for the REIT.

What sets NNN REIT apart is its impressive track record: it has raised its dividend for an astonishing 35 consecutive years, a feat achieved by only a handful of publicly traded companies. The current yield is 5.5%, making it an attractive option for those looking for regular income. Through strategic acquisitions and a focus on partnering with growing retailers, NNN REIT ensures that it remains cash flow positive, allowing for ongoing dividend increases.

### Conclusion: A Strong Investment Strategy

Overall, if you are contemplating where to invest your $2,000 today, considering dividend stocks like Prologis, Invitation Homes, and NNN REIT is an excellent approach. Each of these REITs offers not only competitive dividend yields but also paths for future growth through strategic management and portfolio expansion. The combined yield from these investments could amount to as much as $110 in annual dividend income, assuming a balanced investment strategy.

To sum up, these three stocks represent a smart approach to generating income while maintaining significant growth potential. Whether you are a seasoned investor or just starting your journey, these dividend stocks could provide the stability and returns you seek in today’s market. Investing is never without risk, but choosing well-regarded companies with a history of dividend growth can lay a solid foundation for your portfolio.

Source link