The Smartest Dividend Stocks to Buy With $2,500 Right Now

If you're seeking passive income from your portfolio, dividend stocks are just what you're looking for then. Companies that pay dividends distribute cash payouts to their shareholders, typically on a quarterly basis.

Dividend income can provide a steady stream of income, but there's another benefit for investors. Dividend-paying companies that are loyal to shareholders -- illustrated by consistently growing their payouts -- tend to outperform those companies that don't. According to a study by Hartford Funds and Ned Davis Research, companies that consistently grow their dividend payout provide higher returns on average with lower volatility.

Dividend stocks can be an excellent source of passive income, and can also diversify your portfolio with steady, cash-generating businesses. If this interests you and you have $2,500 to invest, here are three dividend stocks to scoop up today.

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An iconic brand in the beverage industry

Coca-Cola (NYSE: KO) operates one of the largest beverage companies in the world. Its products range from the classic Coca-Cola soft drink to other soft drinks and juices, waters, teas, and coffees.

What makes Coca-Cola compelling is its strong brand and distinctive flavors that make it a staple among consumers. The company has a robust distribution network and its shelf presence is huge. The company also adapts to changing consumer tastes, offering a range of options that include low-calorie drinks, sports drinks, and energy brands.

Another strength is its asset-light business model. While it owns the brands and recipes, its bottlers handle the more expensive manufacturing and distribution process, keeping capital costs lower. Coca-Cola also enjoys steady demand for its beverages and has a degree of pricing power, which helps it generate consistent, recurring revenue with solid margins.

Coca-Cola has a strong brand, a vast distribution network, a low-cost business model, and steady demand, which have helped support growing cash flow and a dividend payout that has grown for 63 consecutive years. As a Dividend King, Coca-Cola boasts a proven track record of dividend payouts, making it a solid investment for income-oriented investors.

A dominant player in a high-barrier-to-entry industry

S&P Global (NYSE: SPGI) operates in a relatively mundane industry, but it possesses an incredible competitive advantage that makes it difficult to overlook as an investment: It is an essential component of the financial markets.

S&P Global is the largest credit rating agency in the U.S., with a staggering 50% market share. This matters because it means the company holds a sizable position in a highly regulated, difficult-to-break-into credit rating industry. Credit ratings matter for investors, banks, governments, and corporations because they help users understand risks. As a result, it commands pricing power thanks to the respect and trust people have in the S&P Global name.

Additionally, S&P Global has a robust data business that helps diversify its earnings with an alternative stream less affected by bond issuance volumes. The data business includes analytics, indexes, and other insights for investors, and provides a reliable stream of revenue and exposure to secular growth trends in data-driven strategies.

S&P Global has a steady business that grows in line with long-term trends in bond issuance and the expansion of financial markets in general. The company has an excellent dividend payout history, having raised its payout for 52 consecutive years. Its yield is relatively modest at 0.8%, but for investors seeking dividend and stock price appreciation, S&P Global is a solid blue chip stock that delivers.

A dominant player in passive investing

BlackRock (NYSE: BLK) is the world's largest asset manager, with over $13.5 trillion in assets under management across its exchange-traded funds (ETFs), mutual funds, and other alternative investments. The asset manager holds a significant share of the ETF market, thanks to its iShares family of investments, which provides highly tailored investment options for both retail and professional investors.

BlackRock plays a pivotal role in financial markets, offering a wide range of investment options. It has captured a growing share of passive investors, primarily due to its variety of ETFs. These ETFs also provide diversified exposure to various industries, sectors, themes, or other factors, enabling customers to create customized portfolios tailored to their specific risk profiles. Its iShares ETFs accounts for about one-third of the global ETF market share.

In recent years, the asset manager has benefited from the higher interest rate environment, creating strong demand for its bond and interest rate-themed ETFs. From 2019 to 2024, BlackRock's global bond ETF assets have grown from $1 trillion to $2.6 trillion, reflecting strong demand for niche investments that BlackRock's extensive range of ETFs can meet.

This massive investment platform gives BlackRock a stable source of recurring revenue through the fees it charges on its products. The business is also relatively capital-light, as it doesn't require significant capital equipment or infrastructure, which gives it solid margins and cash flow to reward shareholders.

BlackRock has done just that, with a dividend yield of 1.8%, and it has raised its payout for a solid 16 consecutive years now. Given its strong position and stable business model, BlackRock is another dividend payer well-positioned to continue rewarding shareholders.

Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends S&P Global. The Motley Fool recommends BlackRock. The Motley Fool has a disclosure policy.