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 (NYSE: NEE), Verizon Communications (NYSE: VZ), and Medtronic (NYSE: MDT) 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.
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.
