3 No-Frills High-Yield Dividend Stocks You Can Buy Right Now for Less Than $1,000

Investing in high-yield dividend stocks is a great way to start generating passive income. Although the current average dividend yield is relatively low ( Standard & Poor's 500indices Dividend Yield of 1.4% vs Historical Low of 1.1%discrepancy between little), but many companies have much higher dividend yields.

For example. Real Estate Investment Trust (REIT) There are many in the industry High Dividend Yield StocksThe Realty Income (NYSE: O), Prologis (New York Stock Exchange: PLD) ) respond in singing Camden Property Trust (NYSE: CPT)are the top three choices for income-seeking investors. Their higher payout ratios allow investors to maximize their yields by earning more income from every dollar invested.

Built for Income Generation

Realty Income really lives up to its name. This diversified real estate investment trust company In its operating history646 consecutive distributions have been made. substandardMonthly dividend Since its public listing in 1994, it has increased its dividend 124 times. Since its public listing in 1994, it has increased its dividend 124 times, representing a compound annual growth rate of 4.3%.

The REIT's current dividend yield is close to 6%. To put this in perspective, for every $100 invested in the company's stock, an investor would receive approximately $6 per year in dividend income. In comparison, a similar investment in an S&P 500 index fund would yield about $1.40 in dividend income per year.

This already high payout ratio will continue to rise in the future. Driven by rental growth and new investment in income-producing properties(math.) genusRealty Income is projected to have an adjusted Operating Funds (FFO)king (chess piece) Maintained growth of 4% to 5% per share over the long term.

The company has a long growth runway, which it often extends by adding new growth verticals. In the past year, the company added data centers, gaming and more European countries to its portfolio, opening the door to $6.6 trillion in potential new investment opportunities.

The Dividend Growth Juggernaut

Prologis currently pays a dividend yield of about 3.3%, more than double that of the S&P 500. This leading Industrial Real Estate Investment Trustfirms Prologis stands out with its above-average dividend growth rate. Over the past five years, Prologis' dividend has grown at a compound annual rate of 12%. This is twice the average of the S&P 500 and the REIT industry.

This industrial real estate investment trust should be able to continue to deliver above-average dividend growth. Rental growth is a key driver. Demand for warehousing remains strong, driving high occupancy and market rent growth. Plogis believes that its same-store net operating income will grow at an annualized rate of 7.5% to 8.5% through at least 2026.

Prologis also has a number of other organic growth drivers, including development projects, energy investments and its strategic capital platform. These organic growth drivers allow the company to grow its core net financial income per share by 9% to 11% per year by 2026, while its strong balance sheet allows it to be nimble enough to make incremental acquisitions as opportunities arise.

Focus on growth markets

With a current yield of 4.3%, Camden REIT has a proven track record of increasing its dividend side. While this residential REIT hasn't increased its dividend every year, it has grown its payout by about a third since 2018.

This apartment owner has several motivating factors that should allow it to continue to increase its dividend. It focuses on owning rental communities in markets where population and employment are growing at an above-average rate. This is driving higher occupancy and rent growth.

Camden's focus on growth markets has also led to new opportunities for expansion. Currently, the company is investing nearly $550 million in five development projects, including the first two single-family rental communities. The company also has nine other communities under development with nearly $1.4 billion in future investment opportunities.

In addition, the company regularly invests in value-added projects to improve its existing portfolio by translating new units, adding amenities and other investments to increase occupancy, retention and rental income. Finally, the company's balance sheet is strong, giving it the financial flexibility to opportunistically acquire operating communities and land to support future development projects.

Higher yields will continue to rise

Realty Income, Prologis and Camden Property Trust offer investors higher yielding dividends. This enables them to maximize their investment returns. In addition, all three REITs have an excellent track record of increasing their dividends, and this is likely to continue. These features make them some of the best high-yield dividend stocks to buy today.

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Matt DiLallo owns shares of Camden Property Trust, Prologis and Realty Income.The Motley Fool owns and recommends Camden Property Trust, Prologis and Realty Income.The Motley Fool recommends the following options:Prologis January 2026 $90 Call Options Long.The Motley Fool has a disclosure policy. The Motley Fool recommends the following options:Prologis January 2026 $90 Call Option Long.The Motley Fool has a disclosure policy.

3 Effortless High-Yield Dividend Stocks You Can Buy Right Now for Less Than $1,000 was originally published by The Motley Fool.