3 Great Dividend Stocks to Buy Right Now for $33 or Less

It takes money to make money. However, it doesn't require a lot of cash to get started generating passive income. Several high-quality dividend stocks cost less than $33 a share.

Three great ones under that price point are Brookfield Renewable (NYSE: BEPC)(NYSE: BEP), Invitation Homes (NYSE: INVH), and Kinder Morgan (NYSE: KMI). Because of that, you can buy one share of all three for less than $100. That would supply you with a growing stream of dividend income that you can add to as you have more cash to invest.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

A high-powered dividend stock

Brookfield Renewable is a leading global renewable energy producer. Its shares currently fetch less than $29 apiece. The company pays a quarterly dividend of $0.355 per share ($1.42 annually). That gives it a nearly 5% dividend yield at the recent share price.

The renewable energy giant has increased its dividend payment at a 6% compound annual rate since 2001. It aims to grow its payout at a 5% to 9% yearly rate in the future.

Brookfield Renewable has ample power to achieve that growth plan. It expects to grow its funds from operations (FFO) per share at a more than 10% annual rate over the next decade. That growth is highly visible and secured through 2029 and increasingly visible and secured beyond that. It has multiple growth drivers, including inflation-linked rate increases on existing power purchase agreements, a vast pipeline of development projects, and acquisitions.

Cashing in on the affordability gap

Invitation Homes is a real estate investment trust (REIT) that owns and manages single-family rental homes. Its share price was recently just below $33. The landlord pays a quarterly dividend of $0.29 per share, which it recently increased by another 3.6%. It has raised its dividend every year since it came public in 2017. Its payout now yields 3.6%.

The REIT has many growth drivers. Its existing portfolio should continue to supply a growing stream of rental income as it increases rents. It's benefiting from strong demand for rental housing due to the affordability gap between renting and buying a home (which is currently more than $1,000 a month in its markets).

On top of that, Invitation Homes will continue to expand its portfolio, which consists of more than 110,000 homes it owns or manages. It has partnered with several leading homebuilders, which will deliver about 2,500 new homes to the REIT in the coming years. Invitation Homes also buys properties from various other channels, including purchasing existing homes listed for sale, acquiring properties and portfolios from other investors, and investing in joint ventures. For example, it recently invested $50 million into a joint venture that plans to deploy $500 million into buying newly constructed homes and communities in several high-growth markets. These growth drivers should enable the REIT to continue increasing its dividend.

The fuel to continue growing

Kinder Morgan is the country's leading natural gas pipeline operator. Shares of the pipeline company currently fetch $27 apiece. It currently pays a quarterly dividend of $0.2875 per share ($1.15 annually), giving it a 4.2% yield at the recent share price.

The company has already unveiled plans to increase its dividend to a $1.17-per-share annualized rate next year. That will mark its eighth consecutive year of dividend growth.

Kinder Morgan should have ample fuel to continue pushing its payout higher in the future. It currently has several billion dollars of expansion projects under construction that should come online through 2028. The company expects to approve additional projects in the coming months to help meet the expected surge in natural gas demand by the end of the decade from catalysts like artificial intelligence (AI) data centers. Those future projects would enhance and extend its growth outlook, giving it even more fuel to increase its dividend.

High-quality dividend stocks for fairly low prices

Brookfield Renewable, Invitation Homes, and Kinder Morgan all currently have share prices below $33 apiece. That makes them very affordable stocks for those seeking to start generating some passive dividend income. The trio should be able to increase their dividends in the future, which will provide investors with a growing income stream that they can add to as they buy more shares.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $362,841!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,054!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $498,381!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of December 23, 2024

Matt DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Invitation Homes, and Kinder Morgan. The Motley Fool has positions in and recommends Invitation Homes and Kinder Morgan. The Motley Fool recommends Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.