The Best Dividend Stocks to Buy With $1,000 Right This Moment

These two dividend stocks are already strong but have multiple channels creating even more growth for the future.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published November 11, 2024 4:10 pm EST

If you’re looking to dive into dividend stocks with just $1,000, NorthWest Healthcare Properties REIT (TSX:NWH.UN) and Power Corporation of Canada (TSX: POW) could be excellent picks. These two Canadian dividend champions bring stability, solid returns, and the potential for long-term income, thus making them ideal choices for beginner investors or those looking to add to a diversified portfolio. Let’s break down why they stand out!

calculate and analyze stock — Image source: Getty Images

NorthWest

NorthWest has a unique focus on healthcare real estate, holding a portfolio of properties spread across North America, Brazil, Europe, and Australasia. With the demand for healthcare infrastructure on the rise, NorthWest’s specialized portfolio brings in steady income through long-term leases indexed to inflation. The recent lease renewal at Sabará Hospital in Brazil. This extends the lease by another 10 years and highlights the stability and longevity of its revenue streams. This level of consistency is appealing to investors seeking reliable dividend payouts.

Financially, NorthWest Healthcare REIT offers an impressive dividend yield of around 7.06%, which is well above the average market yield. This high yield is partly due to the real estate investment trust’s (REIT’s) lower stock price, which sits around $5.01 per share. Its recent performance shows a boost in revenue, with a year-over-year quarterly growth of 11.1%. This indicates that the dividend stock is on a growth path despite its high debt levels. With its focus on essential healthcare services, NorthWest provides a recession-resistant option that appeals to income-seeking investors.

Power stock

Power is a diversified holding dividend stock with interests in financial services, renewable energy, and alternative asset management. Its subsidiaries contribute significantly to its strong financial foundation. Recently, POW has also focused on sustainable growth through Power Sustainable, an investment firm under its umbrella that emphasizes responsible investing. The dividend stock recently appointed Bruce Heyman as chief executive officer of Power Sustainable, signalling its commitment to leadership and expansion in sustainable investments.

POW’s dividend yield is around 4.99%, and with a dividend payout ratio of about 49.53%, it’s well within a sustainable range. This is a comforting figure for long-term investors, as it suggests that POW is not overextending itself to pay dividends. The stock has shown steady price growth within a 52-week range of $33.90 to $46.03. Thus suggesting that it has room to grow further. POW’s diversified business model and expanding reach into sustainable finance are set to strengthen its market position, benefiting shareholders in the long run.

What’s more, POW’s recent earnings reveal solid profitability, with a profit margin of 8.29% and an impressive year-over-year quarterly earnings growth of 44.6%. Its book value per share at $33.53 also indicates that the stock price aligns closely with its intrinsic value. Adding a layer of safety for value-focused investors. With its diversification and stable cash flow, POW is a robust choice for income-seekers.

Bottom line

Looking at the future, both NorthWest and POW offer unique benefits. NorthWest REIT’s focus on healthcare real estate infrastructure ensures that it can capitalize on the aging population trend and growing demand for healthcare facilities. Meanwhile, POW’s move towards sustainable investing aligns with the global push for green and socially responsible investments, positioning it well for long-term relevance and growth.

These stocks bring reliable dividend yields, growth potential, and stability. For just $1,000, these two stocks provide a way to diversify across healthcare and financial services while enjoying steady income. Whether you’re new to investing or adding to a long-term portfolio, these are worth considering for a healthy, balanced approach to dividend investing.