Investing $100 in stocks probably won’t lead to significant wealth in the future. But if you typically make $100 purchases, over time you can build a sizable position in a company and start to see your portfolio balance expand significantly. The key is to find good, safe stocks where you can make the most of any type of investment.
Three stocks that are currently trading under $100 and also pay high dividends are: Comcast (NASDAQ: CMCSA), Enbridge (NYSE:ENB)It is Real estate income (NYSE:O). These are all examples of very safe investments to keep in your portfolio that can provide a steady stream of recurring income.
1. Comcast
Telecommunications company Comcast is trading at about $41 per share as its valuation has fallen 7% this year. Investors have not been very enthusiastic about telecom stocks due to rising interest rates and the capital-intensive nature of their operations.
But Comcast has a robust and diversified business that dividend investors we can invest safely in the long term. The company has been expanding its Peacock streaming service, which gives the company a new way to generate and grow revenue. The company says the Paris Olympics opening ceremony was “the #1 entertainment event in Peacock history” with more than 2.5 million viewers.
However, Comcast’s business isn’t exactly firing on all cylinders. In its most recent earnings report, ending in June, total revenue of $29.7 billion was down 2.7% year over year, and earnings per share at $1.00 were down 1.3%. While business isn’t exactly booming, it’s not tanking either. And with growth opportunities in streaming and the launch of a new theme park next year with Universal Epic Universe, there are reasons this could result in an undervalued growth stock despite its seemingly underwhelming results.
One of the most compelling reasons to invest in Comcast, however, is its high-yield dividend of just over 3%. This can generate excellent recurring revenue. With the dividend, you can increase the overall return from stock ownership.
2. Enbridge
For about $37, you can buy a share of the natural gas pipeline company Enbridge. The stock is known for its stability and impressive dividends. The nature of Enbridge’s dividend makes it a fairly stable investment over the long term. Its pipelines help transport oil throughout North America. The company recently took an important step in acquiring assets from Domain Energy for $14 billion, which will further strengthen its position by creating “from North America largest natural gas utility platform.”
Investors were not thrilled with the size of the deal and the debt Enbridge took on to finance it. However, the company has been selling stakes in other companies to help free up cash and remains confident in its ability to generate strong cash flow to reduce your debt and continue to pay and increase your dividends.
Enbridge met its financial guidance for the 18th consecutive year in 2023, and its distributable cash flow, which is key to determining how much dividends it can pay, totaled C$11.3 billion, up from C$11 billion of Canadian dollars from the previous year. CEO Greg Ebel says the company’s strong financials and low-risk business put it in a good position to grow its profits and dividends over time.
The company has increased its dividend for 29 consecutive years, and with a 7.3% yield, this growing payout is already superior five times O S&P 500 average of 1.4%. If you love dividends, Enbridge might be an obvious stock to buy now.
3. Real estate income
If you want more frequent cash flow, consider Realty Income. It is a real estate investment trust (REIT) that collects rent from a wide range of tenants. Not only is it diverse in terms of all the different industries it is exposed to, but it is also geographically diverse, with its over 1,500 clients spread across the US and Europe.
What makes Realty Income special is that it pays dividends monthly, unlike most dividend stocks, which pay quarterly. This means cash flow will enter your portfolio much more frequently. In August, it is likely to declare dividends for the 650th consecutive month, highlighting an impressive streak of consistency that dividend investors are sure to love. Another thing they will love is that the REIT’s yield is quite high at 5.4% and has been increasing over the years.
Last year, the REIT reported funds from operations per share of $4.07, slightly higher than the $4.04 reported in 2022. With a high occupancy rate of nearly 99%, Realty Income is one of the most insurance you can invest in today. And with a share price of around $58, you can easily buy a full stake in the business for less than $100.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Enbridge and Realty Income. The Motley Fool recommends Comcast and Dominion Energy. The motley fool has a disclosure policy.
3 High-Yield Dividend Stocks to Buy for Under $100 was originally published by The Motley Fool
