5 Smartest Dividend Stocks to Buy With $200 Right Now

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By Lee Jackson Published
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5 Smartest Dividend Stocks to Buy With $200 Right Now

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Dividend stocks are favorites among investors because of their dual benefits: a steady income stream and the potential for a significant total return. This comprehensive measure of investment performance, which includes interest, capital gains, dividends, and distributions realized over time, offers a promising outlook for your investment’s income and stock appreciation.

For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%. That is, 10% for the increase in stock price and 3% for the dividends paid.

The most important ingredient for success when building a portfolio of stocks is getting started early. Regardless of how much money you begin with, the key is to start now and continue to add to your investment pot. By reinvesting your dividends to buy more shares, you can set the stage for long-term success. 

We screened our 24/7 Wall Street dividend stock database, looking for companies that pay dependable dividends and can supply some serious total return if they trade higher over time. We found five of the smartest dividend stocks to buy at $200 right now. All are priced under $10, and all five are rated buy at top Wall Street firms. 

AGNC Investment

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AGNC Investment provides private capital to the housing market in the United States.

This company has paid solid monthly dividends for years; its current yield is a massive 15.05%. AGNC Investment Corp. (NASDAQ: AGNC | AGNC Price Prediction) is a real estate investment trust (REIT) in the United States.

The company invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency.

AGNC Investment funds its investments primarily through collateralized borrowings structured as repurchase agreements. It has elected to be taxed as a REIT under the Internal Revenue Code 1986. However, it would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.

BrightSpire Capital

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BrightSpire Capital is focused on originating, acquiring, financing and managing a diversified portfolio of commercial real estate debt and net lease real estate investments.

Paying a massive 14.04% dividend, this company could be a total return home run. BrightSpire Capital Inc. (NYSE: BRSP) operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe.

The companyoperates through:

  • Senior and Mezzanine Loans and Preferred Equity
  • Net Leased and Other Real Estate
  • Corporate and Other segments

It focuses on originating,acquiring, financing, and managing a diversified portfolio of CRE debt investments, including first mortgage loans, senior loans, debt securities, mezzanine loans, preferred equity investments, and net leased properties.

For federal incometax purposes, the company qualifies as a real estate investment trust. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.

Lloyds Banking Group

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Lloyds Bank is a British retail and commercial bank with branches across England and Wales.

Those who know European financials are familiar with this top company that pays a 5.10% dividend. Lloyds Banking Group PLC (NYSE: LYG) provides a range of banking and financial services in the United Kingdom and internationally.

It operates through three segments:

  • Retail
  • Commercial Banking
  • Insurance and Wealth Management

The Retail segment offers a range of financial service products, including current accounts, savings accounts, mortgages, motor finance, unsecured loans, leasing solutions, credit cards, and other financial services to personal and small business customers.

The Commercial Banking segment provides lending, transactional banking, working capital management, risk management, and debt capital market services to small and medium-sized entities, corporates, and financial institutions.

The Insurance and Wealth segment of Lloyds Banking Group is a testament to its versatility. It offers a wide array of life, home, car insurance products, pension, investment, and wealth management products and services.

The company also caters to the digital age with its digital and mobile banking services and provides advisory services for savings, investments, and retirement planning.

All these services are offered under the trusted brands of:

  • Lloyds Bank
  • Halifax
  • Bank of Scotland
  • Scottish Widows
  • MBNA
  • Schroders Personal Wealth
  • Black Horse
  • Lex Autolease
  • Birmingham Midshires
  • LDC
  • IWeb
  • Agricultural Mortgage Corporation

Redwood Trust

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Redwood Trust is a leading participant in several distinct areas of housing credit.

With a 9.86% dividendand colossal upside, intelligent traders are potentially grabbing shares of Redwood Trust Inc. (NYSE: RWT), a specialty finance company in the United States.

The Residential Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. This segment also offers derivative financial instruments to manage risks associated with residential loans.

The Business-Purpose Mortgage Banking segment operates a platform that originates and acquires business-purpose loans, such as single-family rental and bridge loans, for subsequent securitization, sale, or transfers into its investment portfolio.

The Investment Portfolio segment invests in:

  • Securities retained from residential and business purpose securitization activities
  • Residential and small-balance multifamily bridge loans
  • Residential mortgage-backed securities issued by third parties
  • Freddie Mac K-Series multifamily loan securitizations and reperforming loan securitizations
  • Servicer advance investments
  • Home equity investments, and other housing-related investments

Three Smart Tech Stocks to Buy With $1,000 Right Now

Vodafone Group

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Vodafone is a leading technology communications company in Europe and Africa.

This company pays investors a huge 10.91% dividend and is in a sector that always has demand. Vodafone Group PLC (NASDAQ: VOD) provides telecommunication services in Europe and internationally.

It offers mobile connectivity services comprising:

  • End-to-end services for mobile voice and data, messaging, device management, BYOx, and telecoms management
  • Professional and consulting services
  • Fixed line connectivity, such as fixed voice and data, broadband, software-defined networks, managed WAN, LAN, Ethernet, and satellite; and financial services, as well as business and merchant services

The company alsoprovides:

  • Consumer Internet of Things (IoT) propositions, as well as security and insurance products
  • Mobile services
  • Logistics, fleet management, and intelligent metering services
  • WiFi; digital services comprising mobile application development
  • Multi-access edge computing,
  • Worker insights, AI assistant, drone detection, visual inspection, and mixed reality
  • Vodafone Analytics platform and traditional IT hosting services, including colocation, managed hosting, security, hosting infrastructure, and flexible computing for the government

In addition, it offers integrated business communication services, fixed mobile convergence services, carrier services, and IoT devices comprising managed tablets and integrated terminals.

Further, it offers M-Pesa, an African mobile money platform that allows payments and provides financial services; Vodafone Business’ multi-cloud platform; and productivity solutions. It also operates digital cloud-based television platforms.

 

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About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.

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