Are you in retirement or close to it? Are you an investor that appreciates the idea of receiving a check in your brokerage account every quarter? If this sounds like you, then maybe it’s time to consider companies with impressive dividend policies.
Businesses with excess cash sometimes return capital to shareholders in the form of dividends. These are usually stable companies with established economic moats.
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While investors shouldn’t expect to generate market-beating returns from owning these kinds of businesses, they can provide your portfolio with a solid income stream. Here are the smartest dividend stocks to buy with $3,000 right now.
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Table of Contents
Coca-Cola
The first dividend stock to buy is Coca-Cola (NYSE: KO), the world’s leading beverage company with a presence in over 200 countries and territories. This isn’t an exciting business, but that’s a feature. Coca-Cola doesn’t face any threat of disruption. It has stood the test of time, which arguably makes it one of the safest stocks to own.
Investors should pay attention to profits. Since Coca-Cola outsources bottling and distribution, it’s able to post sizable earnings. The company’s operating margin in Q1 (ended April 3) was a superb 35%. The bottom-line figure is supported by a history of pricing power, which is due to customer loyalty.
Coca-Cola’s success isn’t impacted much by the changing economic winds. Its performance is healthy regardless of macro conditions like inflationary pressures or interest rate trends. This essentially eliminates the risk of a dividend cut, as demand is steady.
In February, the company’s board of directors approved a 4% dividend increase, marking the 64th straight year that a hike was put in place. Coca-Cola shares currently pay a dividend yield of 2.64%.
The next stock on this list is home improvement giant Lowe’s (NYSE: LOW). Based on revenue, it’s significantly smaller than industry leader Home Depot. But the company’s scale, name recognition, and omnichannel capabilities give it durable competitive strengths in a large market.
Starting in August, Lowe’s will pay an annualized dividend of $5, translating to a yield of 2.25%. The business has now raised its dividend in more than 25 consecutive years. This is a clear indication of the management team’s focus on shareholder capital returns.
What’s even more encouraging for investors is that Lowe’s is sticking to its commitment, even though the business has struggled in recent years. Higher interest rates, elevated inflation, and low housing turnover have all hurt demand, which makes this a cyclical stock. Same-store sales were up just 0.6% in the latest fiscal quarter (Q1 2026 ended May 1).
However, in the past decade, Lowe’s has posted an average quarterly operating margin of 11%. It also collects meaningful free cash flow, providing the resources needed to fund ongoing dividends.
Procter & Gamble
Procter & Gamble (NYSE: PG) is the final dividend stock investors should consider as part of a total $3,000 capital outlay. Generating $21.2 billion in revenue for Q3 2026 (ended March 31), this is a massive consumer goods enterprise. It sells well-known household items like Old Spice, Oral-B, and Downy, holding leadership positions in these end markets.
This is a mature business. In the past 10 years, net sales have only risen by 34%. So it’s no surprise that management doesn’t have many opportunities to reinvest in growth initiatives. This also explains why profits are so high, as the net margin was 18.4% in the most recent quarter.
That’s also why dividends are such an integral part of the capital allocation policy. Procter & Gamble’s dividend yield of 2.93% is the highest of the three stocks on this list. It also excels in another critical area. The company’s dividend has been paid in a mind-boggling 136 straight years. If history is any indication, the quarterly payout is never going away.
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $398,052!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,181,688!*
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Lowe’s Companies. The Motley Fool has a disclosure policy.
