Three Outstanding Dividend-Paying Stocks Available for Purchase at Minimal Costs below $33
Earning money calls for investing money, but you don't need a substantial sum to initiate generating passive income via dividend stocks. Finding high-quality stocks selling below $33 per share is not a mission impossible. Three such gems under this price range are Brookfield Renewable (BEPC -0.70%), Invitation Homes (INVH -0.59%), and Kinder Morgan (KMI -0.26%). Purchasing a single share of each would cost less than $100. This investment will yield a growing stream of dividends that you can enhance as your investment funds increase.
A top-notch dividend stock for renewable energy
Brookfield Renewable is a distinguished global key player in renewable energy production. Its shares are currently tagged less than $29 each. The organization takes pride in paying a quarterly dividend of $0.355 per share ($1.42 annually), delivering a near 5% dividend yield at current share prices.
Since 2001, the renewable energy titan has significantly boosted its dividend payment with a 6% compound annual growth rate. The company aims to boost its payout annually by 5% to 9% in the future.
Brookfield Renewable boasts robust growth potential. It aims to grow its funds from operations (FFO) per share at least 10% annually over the next decade. This impressive growth is ensured through 2029 and progressively secures beyond that. The company relies on various growth drivers, such as inflation-linked rate hikes in existing power purchase agreements, an extensive pipeline of development projects, and acquisitions.
Profiting from the affordability gap
Invitation Homes is a real estate investment trust (REIT) known for owning and managing single-family rental homes. Its shares held a recent price of just under $33. The housing provider is committed to paying a quarterly dividend of $0.29 per share, which enjoys a recent increase of 3.6%. It has uninterruptedly hiked its dividend every year since its public debut in 2017. Its yield now stands at 3.6%.
The REIT's growth catalysts stem from several quarters. Its current portfolio should continue to provide a steady stream of rental income as rents keep climbing. It thrives from robust demand for rental housing due to the considerable affordability gap between renting and purchasing a home (currently exceeding $1,000 per month in its markets).
Beyond that, Invitation Homes is poised to extend its portfolio, which currently includes over 110,000 homes it owns or manages. It has joined forces with leading homebuilders, resulting in around 2,500 new homes set to join the REIT in the coming years. Additionally, Invitation Homes continues to acquire properties from various sources, including purchasing existing homes for sale, purchasing portfolios from other investors, and engaging in joint ventures. For instance, the company recently invested $50 million into a joint venture aimed at spending $500 million on purchasing newly constructed homes and communities in several high-growth markets. These growth factors should facilitate further dividend hikes.
Gearing up for further growth
Kinder Morgan is the country's preeminent natural gas pipeline operator. Shares of the company currently sell for $27 each. It presently pays a quarterly dividend of $0.2875 per share ($1.15 annually), rendering a 4.2% yield at current share prices.
The company has announced plans to raise its dividend to a $1.17-per-share annualized rate next year. This marks Kind Morgan's eighth consecutive year of dividend growth.
Kinder Morgan should have ample resources to keep pushing its payout higher in the future. It currently has numerous billion-dollar expansion projects under construction that should come online through 2028. The firm is also poised to authorize additional projects in the coming months to meet the anticipated surge in natural gas demand at decade's end from catalysts like AI data centers. These future projects will amplify and prolong its growth outlook, providing it with even more resources to escalate its dividend.
Affordable dividend stocks for passive income
Brookfield Renewable, Invitation Homes, and Kinder Morgan all boast share prices below $33 each. This makes the trio well within reach for investors looking to start building some passive income stream via dividends. The group should be capable of boosting their dividends in the future, increasing the income stream investors can amplify by purchasing more shares.
Investing in dividend stocks like Brookfield Renewable, Invitation Homes, and Kinder Morgan can provide an excellent opportunity for individuals looking to generate passive income. With share prices below $33 each, these finance possibilities are affordable, allowing individuals to invest their money and potentially increase their income as their investment funds grow, thanks to the increasing dividends.
Brookfield Renewable, in particular, offers a yield near 5%, making it a top-notch dividend stock for renewable energy investments. By purchasing a single share of each of these companies, investors can begin building their passive income stream.
