Are you retired or close to retirement? Are you an investor who appreciates the idea of receiving a check in your brokerage account every quarter? If this sounds like you, maybe it’s time to consider companies with impressive dividend policies.
Capital-rich businesses sometimes return money to shareholders in the form of dividends. These are usually stable companies with established economic channels.
Missed Nvidia in 2009? This Rare Signal Lights Up Again. In 2009, a “Double Down” signal lit up a little-known chip maker called Nvidia. For the first time in years, that “Believe It All” signal is shining on a company 1/100 the size of Nvidia. Continue »
While investors shouldn’t expect to generate market-beating returns by owning these types of businesses, they can provide your portfolio with a solid income stream. Here are the smartest equity stocks you can buy for $3,000 right now.
Image source: Getty Images.
Coca-Cola
The first dividend stock you can buy is Coca-Cola (NYSE: KO), the world’s leading beverage company with a presence in more than 200 countries and territories. This is not a fun business, but a feature. Coca-Cola does not face any threat of disruption. It has been around for a long time, making it one of the safest stocks to own.
Investors should pay attention to profit. Since Coca-Cola produces bottles and distributes, it is able to post large profits. The company’s operating margin in Q1 (ended April 3) was 35%. The low figure is supported by a history of pricing power, driven by customer loyalty.
Coca-Cola’s success is largely unaffected by changing economic winds. Its performance is healthy regardless of major conditions such as inflationary pressures or interest rate trends. This removes the risk of budget cuts, as demand is stable.
In February, the company’s board of directors approved a 4% dividend increase, marking the 64th consecutive year of a dividend increase. The Coca-Cola Company paid a dividend of 2.64 %.
Lowe’s
The next stock on this list is the home improvement giant Lowe’s (NYSE: DOWN). Based on revenue, it is much smaller than the industry leader The Home Depot. But the company’s scale, name recognition, and omnichannel capabilities give it a strong competitive edge in the mass market.
Since August, Lowe’s has paid a $5 dividend, which translates to 2.25%. The business has now increased its profits for more than 25 years in a row. This is a clear indication of the management team’s focus on shareholder returns.
What encourages investors the most is that Lowe’s has stuck to their commitment even though the business has been struggling in recent years. High interest rates, inflation, and low housing affordability are all hurting demand, making this a cyclical stock. Same-store sales rose just 0.6% in the most recent fiscal quarter (Q1 2026 ended May 1).
However, over the past decade, Lowe’s has posted an average quarterly operating margin of 11%. It also accumulates reasonable free cash flow, providing the resources needed to fund ongoing dividends.
Procter & Gamble
Procter & Gamble (NYSE: PG ) is the last stock investors should consider as part of the $3,000 net worth. Generating $21.2 billion in revenue for Q3 2026 (ended March 31), this is a major consumer goods business. It sells well-known household products such as Old Spice, Oral-B, and Downy, holding leadership positions in the latter markets.
This is a mature business. Over the past 10 years, net sales have only increased by 34%. It is therefore not surprising that managers do not have many opportunities to reinvest in growth plans. This also explains why profitability is so high, as gross margin was 18.4% in the most recent quarter.
This is also why dividends are an important part of fiscal policy. Procter & Gamble’s dividend paid a weekly dividend of 2.93%. It also succeeds in another critical area. The company’s dividend has been paid for an astonishing 136 consecutive years. If history is any indication, the quarterly payment will never end.
Should you buy stock in Coca-Cola right now?
Before buying stock in Coca-Cola, consider the following:
I The Motley Fool Stock Advisor a team of analysts has just identified what they believe to be 10 best stocks for investors to buy now… and Coca-Cola was not one of them. The 10 stocks that made the cut could produce huge gains in the coming years.
Think about when Netflix made this list on December 17, 2004… if you invested $1,000 during our recommendation, you will have $398,052!* Whenever Nvidia made this list on April 15, 2005… if you invested $1,000 during our recommendation, you will have $1,181,688!*
Now, it’s worth noting Stock Advisor’s average return is 892% — a market-beating performance that crushes the S&P 500’s 205%. Don’t miss the latest top 10 list, available via Stock Advisorand join an investment community built by individual investors for individual investors.
See 10 stocks »
*Stock Advisor returns from June 28, 2026.
Neil Patel has no position in any of the specified stocks. The Motley Fool ranks and recommends Home Depot. The Motley Fool recommends Lowe’s Companies. The Motley Fool has disclosure policy.
The Smartest Dividend Stocks You Can Buy With $3,000 Right Now was originally published by The Motley Fool.
