3 of the Best Dividend Stocks to Buy for Under $100 Right Now
Want a quality dividend stock to buy for under $100? Below, I’ve got a list of three stocks that can be excellent options to consider for the long haul.
NextEra Energy (NEE +0.97%), Verizon Communications (VZ +0.49%), and Medtronic (MDT +1.31%) are all trading below the $100 mark and offer high yields that are more than double the S&P 500 average of 1.1%. They have solid fundamentals, and together, can enable investors to gain exposure to three different sectors of the market. Here’s a closer look at each one of them, and why they may be worth buying today.
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NextEra Energy
NextEra is a leading utility company in North America, providing millions of customers with electricity. A utility stock, especially a major one such as NextEra, which has generated close to $29 billion in revenue over the past 12 months, is an excellent investment option to consider. Its business is fairly consistent, and there’s an ongoing need for its services. NextEra also generates healthy margins as it posted a profit of about $9.3 billion on all that revenue, which translates into a net margin of 32%.
Those are fantastic fundamentals that highlight why this can be a solid dividend stock to own. Its payout ratio is modest at around 50%, as that gives investors confidence that the dividend is safe. It’s also been raising its payout for years, and in February, it announced a 10% bump up to the annual dividend.
Today’s Change
(0.97%) $0.82
Current Price
$85.52
Key Data Points
Market Cap
Day’s Range
$84.38 – $85.74
52wk Range
$69.24 – $98.75
Volume
3.8M
Avg Vol
12.1M
Gross Margin
35.80%
Dividend Yield
2.81%
The stock is trading at around $85, and it currently yields just under 3%. This is a low-volatility investment (as many utility stocks are) that doesn’t move too closely with the market, making it a suitable option for risk-averse investors. Year to date, it’s risen by 6%.
Verizon Communications
At 6%, telecom stock Verizon offers investors the highest yield on this list. It was even higher recently, as shares of Verizon dipped about a month ago, reminding investors why it’s a good move to put a fairly safe stock like this on a watch list, because if it falls in value, it can open up a great buying opportunity.
Verizon’s mobile and internet services are essentials for its customers, and that’s why, similar to NextEra, its operations are fairly stable and consistent. Concerns about Space Exploration Technologies Corp, also known as SpaceX, disrupting its business spooked investors earlier this year, but Verizon has been able to handle competition just fine over the years as its financials have remained solid. And with a mammoth $139 billion in revenue over the past four quarters, Verizon’s business isn’t small by any means; it would take some sizable competition to truly hurt its operations.
Today’s Change
(0.49%) $0.23
Current Price
$47.26
Key Data Points
Market Cap
Day’s Range
$46.80 – $47.45
52wk Range
$38.39 – $51.68
Volume
7.6M
Avg Vol
27.7M
Gross Margin
45.71%
Dividend Yield
5.94%
The dividend stock is a safer investment than people are giving it credit for these days, and its payout ratio of 73% doesn’t signify any problems on the horizon. While it’s up 16% this year, it still looks undervalued, with a price-to-earnings multiple of 12. Currently, it’s trading at around $47.
Medtronic
Although Medtronic may not sell essential services to consumers, its medical devices are necessities in the healthcare sector, and thus, it also has a great deal of stability and consistency in its operations. But with Medtronic also launching new products, it has some exciting new growth opportunities ahead; its Hugo robotic-assisted surgery system obtained clearance from the Food and Drug Administration last year for urological surgical procedures.
The healthcare stock may thus have more long-term upside than the others on this list. It has declined 28% over the past five years as the pandemic disrupted normal hospital operations, but with things largely back to normal, there’s more reason to be bullish on the company’s long-term future. In addition to growth potential and possible capital gains, at 3.2%, investors can also generate plenty of dividend income from this investment. Its payout ratio is around 75%, which is manageable and can enable the business to focus on growth while still offering a great dividend.
Today’s Change
(1.31%) $1.17
Current Price
$90.58
Key Data Points
Market Cap
Day’s Range
$88.70 – $90.63
52wk Range
$73.31 – $106.33
Volume
3.9M
Avg Vol
9.5M
Gross Margin
60.27%
Dividend Yield
3.19%
Currently, the healthcare stock is trading around $90, and it may not be long before it climbs back up over $100.
