4 Smartest Dividend Stocks to Buy With $1,000 Right Now

For younger investors or those on a tight budget, investing to generate consistent passive income can be daunting because many top dividend stocks trade anywhere from $25 to over $100 per share. Realizing any significant return on investment can be challenging with a small investing capital base of $1,000. When building a portfolio of stocks, the most critical ingredient for success is getting started early. Regardless of how much money you begin with, if you continue to add to the pot and reinvest your dividends to buy more shares, there is a good chance for long-term success.

We screened our 24/7 Wall Street dividend stock database, looking for companies that pay dependable dividends and can supply some serious total return if they trade higher over time. We found four that look like great ideas. All are priced under $10, making them accessible if you have $1,000 to invest now.

Why do we cover dividend stocks?

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Amcor

This Dividend Aristocrat is an excellent idea as its products are always in demand. Amcor PLC (NYSE: AMCR) is engaged in packaging solutions for consumer and healthcare products. The company develops sustainable packaging in flexible and rigid formats across multiple materials.

The company operates through two segments: Flexible and Rigid Packaging.

The Flexibles segment consists of operations that manufacture flexible and film packaging in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries.

The Rigid Packaging segment consists of operations that manufacture rigid containers for a broad range of predominantly beverage and food products, including:

• Carbonated soft drinks
• Water
• Juices
• Sports drinks
• Milk-based beverages
• Spirits and wine
• Sauces
• Dressings
• Spreads and personal care items
• Plastic caps for a wide variety of applications

The company’s subsidiaries include Amcor Flexibles North America, Amcor UK Finance, and Amcor Finance (USA).

Barings BDC

Barings BDC Inc. (NYSE: BBDC) primarily invests in debt in middle-market companies. This business development company (BDC) is an industry leader and pays a massive dividend. It is a publicly traded, externally managed investment company elected to be treated as a BDC under the Investment Company Act of 1940.

It seeks to invest primarily in:

• Senior secured loans
• First lien debt
• Unitranche
• Second lien debt
• Subordinated debt
• Equity co-investments
• Senior secured private debt investments in private middle-market companies operating across various industries

The company specializes in:

• Mezzanine
• Leveraged buyouts
• Management buyouts
• ESOPs
• Change of control transactions
• Acquisition financings
• Growth financing
• Recapitalizations in lower-middle market, mature, and later-stage companies

Barings BDC invests in manufacturing and distribution, business services and technology, transportation and logistics, and consumer products and services. It invests in the United States and companies with EBITDA of $10 million to $75 million, typically in private equity sponsor-backed investments.

Evolution Petroleum

Evolution Petroleum Corp. (NYSE: EPM) is an energy company that develops, owns, and exploits onshore oil and gas properties in the United States. This small-cap company pays investors a huge dividend and could be a takeover target.

The company holds non-operated interests in:

• The SCOOP and STACK plays in Central Oklahoma
• The Chaveroo Field, situated in Chaves and Roosevelt Counties, New Mexico
• The Jonah Field, located in Sublette County, Wyoming
• The Williston Basin, situated in Williston, North Dakota
• The Barnett Shale field in North Texas
• The Hamilton Dome, situated in Hot Springs County, Wyoming
• The Delhi Field, an onshore CO2-EOR project located in northeast Louisiana in Franklin, Madison, and Richland Parishes, as well as small overriding royalty interests in four onshore central Texas wells

United Microelectronics

United Microelectronics Corp. (NYSE: UMC) was founded as Taiwan’s first semiconductor company in 1980 and offers massive total return potential. The company operates as a semiconductor wafer foundry in:

• Taiwan
• China
• Hong Kong
• Japan
• Korea
• The United States
• Europe
• Elsewhere

The company provides circuit design, mask tooling, wafer fabrication, assembly, and testing services to fabless design companies and integrated device manufacturers.

United Microelectronics announced last year the availability of its 22-nanometer-embedded high voltage (eHV) technology platform, the most advanced display driver IC foundry solution for powering premium displays for smartphones and other mobile devices.

With unmatched power efficiency and reduced die size, the new platform, 22eHV, enables mobile device manufacturers to enhance the battery life of their products while offering superior visual experiences.

Four Stealth Passive Income Stocks Under $10 With Huge Ultra-High-Yield Dividends

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