The Best Stocks to Buy With $1,000 Right Now

Source Motley_fool

Key Points

  • NextEra Energy isn't just a boring utility; it's a fast-growing business with rapidly rising dividend growth.

  • Enbridge is a diversified midstream company with a high yield and a clean energy hedge.

  • Business at UPS is in turnaround mode, and green shoots are showing up that you shouldn't ignore.

  • 10 stocks we like better than NextEra Energy ›

So you have some money, say $1,000, and you want to buy a stock. That's great, but what stock? Here are three options: from growth-oriented NextEra Energy (NYSE: NEE) to high-yield Enbridge (NYSE: ENB), to a turnaround play like United Parcel Service (NYSE: UPS).

If you take the time to get to know these dividend stocks, one is likely to pique your interest as 2025 comes to a close.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

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1. A surprising growth story

NextEra Energy is a utility, a sector that very few people would associate with growth investing. However, the company's dividend has grown at a compound annual rate of 10% over the last 20 years. That's an astounding number and is only possible because of the company's impressive growth profile, with earnings advancing at a similar rate.

The big story here is that NextEra has a strong foundational business on top of which it has built, and continues to expand, a growth business. The foundation is the company's regulated electric utility operation, Florida Power & Light. It's a slow-growth business, but highly reliable. The real growth has come from NextEra Energy's investments in renewable power, which has seen strong demand as the world shifts toward cleaner energy options. This shift is likely to last for decades.

If you have $1,000 to invest, you can buy around 12 shares of NextEra Energy, collecting the stock's 2.8% dividend yield. But the real draw is the ability to benefit from the highly likely dividend increases that are still to come as it continues to expand its clean energy business.

2. High yield, with a hedge

Investors focused on maximizing the income their portfolios generate will probably prefer Enbridge and its lofty 5.8% dividend yield. Meanwhile, that dividend has been increased every year for three consecutive decades. The yield is likely to make up a huge part of your total return over time, but that probably won't bother income lovers.

Indeed, the big knock against Enbridge is that it is a slow and steady tortoise. That's a deliberate move by management, which is highly focused on providing investors with reliable dividends. The core of the business is its fee-based midstream portfolio, which spans oil and natural gas and is spread across all of North America.

However, Enbridge also owns regulated natural gas utilities and renewable power assets, creating a highly diversified business. That is no surprise, since a key goal is to align the business with the world's evolving energy needs.

If you like high yields and businesses that are built to last, you'll likely find Enbridge stock attractive. A $1,000 investment will get you around 20 shares of this high-yield stock.

3. Green shoots are showing for this turnaround

The hardest stock to love on this list is likely to be United Parcel Service, which is commonly referred to simply as UPS. It is in the midst of a significant business overhaul. The ultimate goal is to become a more agile business, focusing on high-growth niches within the package delivery market.

To get there, however, the company has had to spend money even as it makes the conscious decision to part ways with large, but low-value, customers. In other words, revenue is down and costs are up. Not surprisingly, the income statement is a bit of a nightmare at the moment.

However, there are positive signs that a business turnaround is gaining traction. For example, the revenue per piece in the company's U.S. business increased in the second and third quarters of 2025. That is the end goal, even if it hasn't yet translated into better earnings. Notably, the revenue per piece rose nearly 10% in the third quarter, which is a very big improvement.

You'll need to be a bit of a contrarian to buy UPS. But if you like turnaround stories, you should find it highly attractive. The one caveat is that the dividend payout ratio is over 100%. A dividend reset isn't out of the question here, given the business reset that's taking place. If you invest $1,000 in UPS, you'll end up with roughly nine shares.

You have plenty of options

So there you have a growth stock (NextEra), an income stock (Enbridge), and a turnaround stock (UPS). You probably won't like all three, but if you have money to invest, one of them will likely appeal to you right now.

Should you buy stock in NextEra Energy right now?

Before you buy stock in NextEra Energy, consider this:

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*Stock Advisor returns as of December 31, 2025.

Reuben Gregg Brewer has positions in Enbridge. The Motley Fool has positions in and recommends Enbridge, NextEra Energy, and United Parcel Service. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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