The Smartest Dividend Stocks to Buy in 2026 With $1,000 Right Now -- Including Realty Income and AbbVie

Source Motley_fool

Key Points

  • Dividend-paying stocks can be great for investors of any age.

  • The income they deliver can be invested in more shares of stock.

  • These companies have solid growth potential -- and meaningful dividend payouts.

  • 10 stocks we like better than Realty Income ›

The power of investing in dividend-paying stocks is often underappreciated. Many people assume dividends are mainly for grandparents and other retirees, and it's true that dividend income can be extremely useful when you're living on a fixed or semi-fixed income. But pre-retirees can also benefit greatly from dividends. For example, you can use that income to buy more shares of stock!

Here are a handful of dividend stocks to look into further and consider buying for your long-term portfolio -- whether you've got $1,000, $100, or $500,000 to spend.

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 »

A person points to their forehead and smiles.

Image source: Getty Images.

1. Realty Income

Realty Income (NYSE: O) is a real estate investment trust (REIT) -- a company that owns lots of real estate and leases it to tenants. REITs are required to distribute at least 90% of their taxable earnings as dividends, making them attractive to investors seeking dividend income. Realty Income's dividend yield is a hefty 5.5% -- and here's a big way it differs from most dividend stocks: It pays its dividend on a monthly basis. The company's payout is rather dependable, too, as it has paid its dividend for 667 consecutive months.

Realty Income uses triple-net leases, in which its tenants cover real estate taxes, property insurance, and operating expenses. In exchange for this arrangement, its leases tend to feature modest annual rent increases, often around 1%.

The company's portfolio of properties, as of early November 2025, featured about 15,500 properties in all 50 U.S. states, the U.K., and seven other countries in Europe -- with a 98.7% occupancy rate. Its 1,600-plus tenants include names such as Wynn Resorts, Dollar General, Tractor Supply Co., and Lowe's. The stock is well worth considering.

2. AbbVie

Pharmaceutical company AbbVie (NYSE: ABBV), spun off from Abbott Laboratories in 2013, is another solid dividend payer, with a recent dividend yield of 3.1%. Even better, it has increased its payout by an average annual rate of 7% over the past five years. The stock's payout ratio -- the percentage of earnings paid out in dividends -- is good, too, at less than 50%. That leaves plenty of room for further increases, and when you include the time that AbbVie was under Abbott's roof, the company has hiked its payout for more than 50 consecutive years.

AbbVie has an active pipeline of around 90 products in various stages of development and it is investing heavily in research and development, to the tune of nearly $11 billion in 2024. The company has been growing at a good clip, too, with third-quarter revenue up 9% year over year and immunology and neuroscience revenue up 12% and 20%, respectively.

AbbVie's stock is somewhat reasonably priced, too, with a recent forward-looking price-to-earnings (P/E) ratio of 15.7. That's above the five-year average of 12.4, suggesting the shares may be slightly overvalued. So perhaps buy into the stock incrementally over time, or just add it to your watch list. Those buying now will enjoy some solid dividend income, though.

3. Coca-Cola

Coca-Cola (NYSE: KO) is a longtime dividend payer and a blue chip stock, yielding 2.9%, and it has increased its payout for 64 years in a row. Tracing its roots way back to 1886, it's a global icon, with big brands such as Coca-Cola, Sprite, Fanta, Dasani, Powerade, and Minute Maid.

Coca-Cola is probably not going to be the fastest-growing stock in your portfolio. Its third quarter featured global unit case volume up only 1% year over year, with revenue up 5% and both operating margin and earnings growing significantly. If you're worried about any possible global turmoil or a pullback in the U.S. stock market, this stock might comfort you, as it's likely that whatever goes on in the world, people will keep drinking Coca-Cola beverages, whether they're sodas, coffees, teas, juices, sports drinks, or non-alcoholic ready-to-drink beverages.

The stock is appealingly priced, too, with a forward P/E ratio of 22, a smidge below the five-year average of 23.

Give one or more of these stocks some consideration for your long-term portfolio, especially if you're seeking income.

Should you buy stock in Realty Income right now?

Before you buy stock in Realty Income, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $474,578!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,628!*

Now, it’s worth noting Stock Advisor’s total average return is 955% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of January 19, 2026.

Selena Maranjian has positions in AbbVie and Realty Income. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, Realty Income, and Tractor Supply. The Motley Fool recommends Lowe's Companies and recommends the following options: short January 2026 $58 calls on Tractor Supply. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
XRP Drops 5% After Being Hailed as 2026’s “Hottest Trade”XRP fell back to $2.18 after failing to hold above $2.28, cooling off an early-2026 rally that had been strong enough to earn the token the label of “new cryptocurrency darling” in a recent CNBC segment. The pullback underscores that even strong bullish narratives must contend with significant overhead supply at key technical resistance levels.
Author  Mitrade
Jan 08, Thu
XRP fell back to $2.18 after failing to hold above $2.28, cooling off an early-2026 rally that had been strong enough to earn the token the label of “new cryptocurrency darling” in a recent CNBC segment. The pullback underscores that even strong bullish narratives must contend with significant overhead supply at key technical resistance levels.
placeholder
Gold Prices Soar to Record High Amid Disappointing U.S. Jobs Data and Geopolitical Tensions Gold prices surged to a record $4,601.17 per ounce as weaker-than-expected U.S. payroll data heightened expectations for Federal Reserve interest rate cuts. Ongoing geopolitical tensions in the Middle East and Venezuela further supported the metal's appeal as a safe haven.
Author  Mitrade
Jan 12, Mon
Gold prices surged to a record $4,601.17 per ounce as weaker-than-expected U.S. payroll data heightened expectations for Federal Reserve interest rate cuts. Ongoing geopolitical tensions in the Middle East and Venezuela further supported the metal's appeal as a safe haven.
placeholder
Gold, Silver Hit Records as Fed Independence Fears, Iran Unrest Fuel Haven RushGold and silver surged to all-time highs on Monday, propelled by mounting concerns over Federal Reserve independence after the U.S. Justice Department threatened a criminal indictment against the central bank, alongside escalating geopolitical tensions as protests in Iran intensified.
Author  Mitrade
Jan 12, Mon
Gold and silver surged to all-time highs on Monday, propelled by mounting concerns over Federal Reserve independence after the U.S. Justice Department threatened a criminal indictment against the central bank, alongside escalating geopolitical tensions as protests in Iran intensified.
placeholder
Jefferies Predicts Strong Growth in Chinese AI Stocks Amid Narrowing Valuation GapsJefferies analysts highlight the growth potential of Chinese artificial intelligence stocks, forecasting significant upside as valuations converge with U.S. peers. Increased capital spending and government support further enhance optimistic outlook through 2026.
Author  Mitrade
Jan 14, Wed
Jefferies analysts highlight the growth potential of Chinese artificial intelligence stocks, forecasting significant upside as valuations converge with U.S. peers. Increased capital spending and government support further enhance optimistic outlook through 2026.
placeholder
Bitcoin Tops $95,000 Amid Two-Month High, but U.S. Demand Lags Behind Global RallyBitcoin prices climbed above $95,000 on Tuesday, reaching their highest level in two months. However, a key market indicator suggests U.S. investor participation in the rally has been noticeably weaker compared to overseas demand.
Author  Mitrade
Jan 14, Wed
Bitcoin prices climbed above $95,000 on Tuesday, reaching their highest level in two months. However, a key market indicator suggests U.S. investor participation in the rally has been noticeably weaker compared to overseas demand.
goTop
quote