Only Have $500? 3 No-Brainer Stocks to Buy Right Now

Forget the old adage “it takes money to make money.” In the stock market, even a measly $500 can kickstart a fortune. Time, not a fat wallet, is the real MVP here. With the right picks, that modest stash could balloon into a retirement jackpot.

History backs this up: the S&P 500’s long-term average return clocks in at 11% annually. That’s weathered crashes, wars, riots, and pandemics — proof that chaos fades and bull markets roar back. You don’t need a billionaire’s bankroll to ride this wealth wave; a small stake, patience, and smart bets can do the trick.

Drop $500 into an S&P index fund, leave it for 25 years, and it morphs into $6,800 at that 11% clip — no extra cash required. But why settle for average? Hand-picking winners can turbocharge that growth and $500 is your ticket in.

Check out these three slam-dunk stocks: simple, solid, and primed to turn your spare change into serious dough. They’re not flashy tech gambles. These are everyday businesses with muscle, ready to grow your grubstake into a golden nest egg. In a world where bear markets bow to bulls, these picks could make your $500 the start of something massive. Let’s dive in and see how to flip small bucks into big wins.

Philip Morris International (PM)

Global tobacco giant Philip Morris International (NYSE:PM) is the first stock to consider buying with your $500 grubstake. It offers stability, income, and growth in a shifting tobacco landscape. At $122, owner of the Marlboro brand outside the U.S. delivers a mix of cash flow and upside that makes it a no-brainer for small stakes.

Philip Morris’ fourth-quarter earnings showed $9.6 billion in revenue, up 5.8%, and beating Wall Street’s estimates of $9.3 billion. Adjusted earnings hit $1.81 per share, handily topping forecasts for $1.65 per share, and driven by a 15% surge in smoke-free product shipments, such as its IQOS heated-tobacco cigarette. These reduced-risk products now represent 36% of revenue. 

With $3.15 billion in operating cash flow and $2.9 billion in free cash flow for 2024, Philip Morris International’s financials offer rock-solid protection in an uncertain market. Yet because it has reduced exposure to U.S. markets (primarily its popular Zyn nicotine pouches). Philip Morris International aims for two-thirds of its revenue coming from non-cigarette products by 2030. 

The dividend seals the deal. Philip Morris pays $5.40 per share yielding 3.6% annually., That would equate to $16.20 in income on a $500 stake (3 shares at $150), with a 76% payout ratio leaving room for growth.

Analysts estimate earnings of $7.13 per share this year with a $150 per share price target, suggesting it is fairly valued. Yet for your $500, the tobacco stock offers you considerable income today with growth to follow later.

AbbVie (ABBV)

AbbVie (NYSE:ABBV) stands out as a smart $500 investment as it blends a hefty dividend, strong cash flows, and growth potential in a volatile market. Trading at $212, this biopharmaceutical stock offers a compelling case for small investors.

The drugmaker’s fourth-quarter earnings delivered $14.3 billion in revenue, topping $14.1 billion estimates, with adjusted earnings of $2.79 per share beating forecasts of $2.75 per share. 

Growth came from Crohn’s disease treatments Skyrizi and Rinvoq, with each seeing sales rising 50% or more, offsetting Humira’s patent cliff. The two already own half the market. With $18.5 billion in annual operating cash flow and $8 billion in free cash flow, AbbVie’s finances are a fortress.

It also has a dividend that shines. The $1.64 per share quarterly payment yields 3% and was increased 5% last October. Considered a Dividend King, ABBV stock would provide $13 in annual income for your $500 investment. AbbVie has raised its dividend at a speedy 15% compound annual growth rate (CAGR) for the last 10 years, though over the past five years it has been at a smaller 9% CAGR.

ABBV stock remains a stalwart investment for growth and income.

Coca-Cola (KO)

Coca-Cola (NYSE: KO) is the third stock to consider for your $500 investment due to it being one of the most recognizable brands in the world. Coke has a dominant market presence, selling beverages in over 200 countries, and a diverse product lineup, including sodas, water, and energy drinks. It ensures steady demand regardless of economic conditions.

Beyond its strong brand, Coca-Cola is known for its commitment to returning value to shareholders. It has increased its dividend for over 60 consecutive years, making KO stock another Dividend King. This consistent income stream can help investors grow their wealth over time. Additionally, Coca-Cola’s resilient business model, which thrives even during downturns, makes it a low-risk option for beginners and experienced investors alike.

With a long history of success, reliable earnings, and a shareholder-friendly approach, Coca-Cola remains a solid choice for a $500 investment focused on stability and growth.

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