Investors love dividend stocks because they provide dependable income and a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation.
Most dividend investors seek solid passive income streams of quality dividend stocks. Passive income is a steady stream of unearned income that doesn’t require active traditional work. Shared ideas for earning passive income include investments, real estate, or side hustles.
For younger investors or those on a tight budget, investing to generate consistent passive income can be daunting because many top dividend stocks trade anywhere from $25 to over $100 per share. Realizing any significant return on investment can be challenging with a small investing capital base of $1000.
We screened our 24/7 Wall St. dividend income database, looking for solid, lower-priced stocks that pay dependable dividends that investors can purchase and start to generate positive total returns.
Why we recommend these stocks
Those just starting out on a path to investing and building a portfolio need to look at lower-priced companies so they can start to get a reasonable share count. The four stocks highlighted allow those with $1000 to buy 50 to 100 shares or more.
Ford
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This legacy carmaker pays shareholders a rich 4.71 dividend. Ford Motor Co. (NYSE: F) develops, delivers, and services a range of Ford trucks, commercial cars, and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide.
It operates through five segments:
- Ford Blue
- Ford Model e
- Ford Pro
- Ford Next
- Ford Credit
The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers and dealerships to commercial fleet customers, daily rental car companies, and governments.
It also engages in vehicle-related financing and leasing activities to and through automotive dealers.
In addition, the company provides retail installment sale contracts for:
- New and used vehicles
- Direct financing leases for new cars to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers.
Further, it offers wholesale loans to dealers to finance the purchase of vehicle inventory, loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs.
Lloyds Banking Group
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Those who know European financials are familiar with this top company that pays a 5.44% 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, and car insurance products and 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
Nokia
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This telecommunications company once ruled the cell phone arena until the advent of the smartphone in 2007, but it remains a solid dividend idea as it pays a 4.64% yield. Nokia Corp. (NYSE: NOK) provides worldwide mobile, fixed, and cloud network solutions.
The company operates through four segments:
- Network Infrastructure
- Mobile Networks
- Cloud and Network Services
- Nokia Technologies
The company provides fixed networking solutions, such as:
- Fiber and copper-based access infrastructure
- In-home Wi-Fi solutions, and cloud and virtualization services
- IP networking solutions, including IP access, aggregation, and edge and core routing for residential, mobile, enterprise and cloud applications
- Optical networks solutions that provide optical transport networks for metro, regional, and long-haul applications
- Subsea applications; and submarine networks for undersea cable transmission
It sells its products and services to communications service providers, webscales and hyperscalers, digital industries, and government.
The company also offers mobile technology products and services for:
- Radio access networks and microwave radio links for transport networks
- Network management solutions
- Network planning
- Optimization
- Network deployment
- Technical support services.
In addition, it offers:
- Cloud and network services, including core network solutions, such as voice and packet core
- Business applications, such as security, automation, and monetization
- Cloud and cognitive services
- Enterprise solutions, including private wireless and industrial automation.
Further, the company licenses intellectual property, including patents, technologies, and the Nokia brand.
Vodafone Group
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This company pays investors a huge 11.13% 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 also provides:
- 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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