3 Dividend Stocks I'd Buy With $5,000 Before the End of November

Dividend stocks can turn savings into a growing stream of income. If I had $5,000 to invest in dividend stocks before the end of November, I'd split it equally among PepsiCo (NASDAQ: PEP), Hershey (NYSE: HSY), and Home Depot (NYSE: HD).

All three have long records of paying dividends, and research shows that companies that pay dividends have historically outperformed those that don't. According to Hartford Funds and Ned Davis Research, S&P 500 stocks that grew or initiated dividends returned about 10% per year from 1973 through 2025, versus about 4% for stocks that paid no dividends.

At Nov. 3 prices, investing $1,667 into each stock would earn about $176 a year in dividends, a blended yield of about 3.5% -- more than three times the S&P 500 average. Here's why now is a good time to buy these stocks.

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PepsiCo: $71 in income

PepsiCo sells some of the world's best-known snacks and drinks, from Doritos to Gatorade. A $1,667 investment would buy about 12 shares at current prices, yielding about $71 per year based on Pepsi's current annualized dividend of $5.92 per share.

The business is gaining momentum, especially overseas. Organic revenue, which excludes the impact of foreign currency fluctuations, grew 3% year over year in the third quarter -- the highest rate of growth since the fourth quarter of 2023. The international business performed well, with organic revenue up 8%.

PepsiCo is also cutting costs to fund more growth. CEO Ramon Laguarta said additional structural cost reductions "will be implemented in the coming months to help fund investments that aim to accelerate organic revenue growth."

The stock yields about 4.3%, and the dividend accounted for about 75% of trailing free cash flow (cash from operations minus business investments). This year marked PepsiCo's 54th consecutive annual dividend increase, making it a Dividend King (a category of companies that have increased their dividends for at least 50 years without interruption).

With international growth looking strong and management focused on reducing costs, Pepsi's high yield looks very attractive.

Hershey: $58 in income

Hershey owns iconic treats like Reese's and Kit Kat, plus fast-growing salty snacks like Dot's pretzels. A $1,667 stake buys almost 10 shares, which would pay about $58 a year based on the annualized dividend of $5.808 per share.

Hershey's profits are rebounding as price increases and productivity savings kick in. Its adjusted gross margin jumped nearly 11 percentage points last quarter to about 43%. Management sees more progress ahead. CFO Dave Hulays said, "We do expect meaningful margin improvement in 2027."

Sales should grow, too. CEO Kirk Tanner reaffirmed that 2027 sales growth should land within the company's long-term range of 2% to 4%. He added that the 2027 innovation pipeline is 50% larger than this year's, citing new product ideas that could drive healthy sales.

It's a good bet that people won't lose their taste for chocolate, and Tanner described its convenience-store sales channel as a "robust category" that remains "resilient" despite consumer headwinds. The stock yields about 3.5%, and the dividend totaled about 55% of trailing free cash flow.

Hershey just declared its 387th consecutive regular dividend, payable on Dec. 15 to shareholders of record on Nov. 16. Its iconic brands and pricing power should continue to reward patient investors.

Home Depot: $47 in income

Home Depot is the world's largest home improvement retailer, with more than 2,300 stores. A $1,667 stake buys about five shares, which would pay about $47 a year based on the annualized dividend of $9.32 per share.

Even with a sluggish housing market, Home Depot is holding up well. In the fiscal second quarter of 2026, comparable-store sales, which measure performance at stores open at least a year, increased 1.7% year over year, with sales through digital platforms up 11%.

Home Depot also shows steady profitability even during a weak housing market. CFO Richard McPhail pointed to the company's "consistent ability to deliver results and maintain stable gross margin," even through "unprecedented volatility in our cost environment."

The stock yields about 2.8%, and the dividend totaled about 61% of free cash flow. Home Depot has paid 158 consecutive quarterly dividends. With its scale and growing reach with professional contractors, Home Depot is positioned to deliver long-term shareholder returns.

Together, these three stocks would turn $5,000 into about $176 a year in dividend income. Each company has the brands, scale, and cost discipline to keep raising its payout over time, which makes this a portfolio I'd be comfortable holding for the long term.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hershey and Home Depot. The Motley Fool has a disclosure policy.