2 Dividend Stocks You Can Buy With $100 in June

2 Dividend Stocks Under $100 You Can Buy in June. income-focused investors are seeking reliable ways to generate a steady stream of income. Dividend-paying stocks can be a powerful tool for achieving this goal. Dividends are cash distributions that companies pay out to their shareholders. But with many dividend stocks trading at high prices, it can be challenging for those with limited capital to invest. However, fear not! This article explores two “no-brainer” dividend stocks that you can potentially buy with just $100 each in June.

Building Your Investment Arsenal: Why Dividend Stocks Matter

For many investors, particularly those nearing retirement or seeking supplemental income, dividend stocks hold significant appeal. Here’s why:

  • Passive Income Stream: Companies that pay dividends provide investors with regular cash payments. This can be a valuable source of income, especially when reinvested to generate compound interest over time.
  • Focus on Stable Companies: Companies that consistently pay dividends are often established and financially healthy. This can offer some peace of mind for investors seeking stability.
  • Potential for Growth: While dividend payments provide current income, some companies also raise their dividend payouts over time. This can lead to a combination of income and capital appreciation.

Finding Value: Dividend Stocks Under $100

While some dividend stocks trade for hundreds or even thousands of dollars per share, there are still good options available for those with smaller investment amounts. Here are two companies to consider for your June investment:

1. The Walt Disney Company (DIS): Magic and Dividends

  • Current Share Price (as of June [date]): Around $100 per share.
  • Dividend Yield: Over 3.5%.
  • The Disney Draw: The Walt Disney Company is a global entertainment powerhouse. From its iconic theme parks to its beloved movie studios, Disney has a loyal fan base and a diversified revenue stream.
  • Dividend Track Record: Disney has a long history of paying and even raising its dividend payouts. This commitment to shareholder value is a positive sign for income investors.
  • Challenges to Consider: The entertainment industry can be cyclical, and Disney faces competition from streaming services. Investors should be aware of these potential risks.

2. AbbVie Inc. (ABBV): Pharmaceutical Powerhouse with a Payout

  • Current Share Price (as of June [date]): Around $90 per share.
  • Dividend Yield: Over 5.2%.
  • Healthcare Hero: AbbVie is a leading pharmaceutical company with a strong product portfolio. This provides stability and growth potential.
  • Dividend Strength: AbbVie boasts a strong dividend history with consistent increases in recent years.
  • Risks to Remember: The pharmaceutical industry faces regulatory hurdles and patent expirations that can impact profitability.

Beyond the Basics: Factors to Consider Before You Buy

Before diving in, consider these factors when evaluating dividend stocks:

  • Sustainability of the Dividend: Can the company afford to keep paying its dividend in the long run? Look for companies with consistent earnings and strong cash flow.
  • Underlying Stock Price: While a high dividend yield is attractive, a falling stock price can erode your overall investment returns. Consider the company’s future growth prospects.
  • Diversification Matters: Don’t put all your eggs in one basket. Spread your investments across different sectors and asset classes to manage risk.

The Final Word: Invest for the Long Haul

Dividend stocks under $100 can be a great way for new investors to build a portfolio and start generating income. However, remember that investing involves risk, and past performance is not necessarily indicative of future results. Do your research, understand the risks involved, and consider your long-term investment goals before making any decisions.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Consult with a financial advisor before making any investment decisions.

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