The Smartest Dividend Stocks to Buy With $350 Right Now

Riskier assets like growth and technology stocks have enjoyed a strong run since early 2023. However, some uncertainty has begun clouding the stock market's outlook. The Trump administration appears determined to reshape the economic landscape in the United States, attempting to remedy sticky inflation and stubbornly high interest rates that have many U.S. consumers feeling financial pain.

The U.S. Index of Consumer Sentiment recently dropped below 60, which has only happened a handful of times since the 1950s. Consumers tend to spend less when afraid. Consumer spending is the engine of the U.S. economy, and a pullback could cause a recession.

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Hopefully, that doesn't happen. Recessions are stressful and negatively impact people's lives. Still, they are a normal part of the economic cycle. They've happened throughout history and will happen again.

Investors who want to scale back the volatility in their portfolio can consider dividend stocks in resilient industries, like consumer staples. These companies usually perform better during challenging times because consumers cannot easily cut back on their products.

Here are three prime examples you can buy for just $350 today. They might be the smartest dividend stocks you can buy right now.

1. Coca-Cola

People need to eat and drink regardless of the circumstances, and Coca-Cola (NYSE: KO) rules the global nonalcoholic beverages market. The company's beverages span beyond classic sodas like Coca-Cola and Sprite and include water, juices, coffees, sports drinks, coffee, and more. Coca-Cola's brands are globally recognized and found virtually everywhere you go. If people aren't drinking Coca-Cola products at restaurants, bars, or on the go, they probably buy them at stores to take home.

Coca-Cola's dividend exemplifies the company's durability. It is a Dividend King, with 63 consecutive annual dividend raises. Coca-Cola's business doesn't seem to have an end in sight, since the world's beverage market is so large and fragmented. Coca-Cola continues to sell more products to a growing world population, mixing in contributions from price increases, new products, and acquisitions.

Investors can buy Coca-Cola today at a starting dividend yield of almost 3%. Meanwhile, analysts anticipate the company's earnings will grow by an average of 6% annually over the long term. Coca-Cola's vast growth opportunities, global reach, and generational consistency make it a smart buy for investors seeking steady production in their portfolios.

2. Constellation Brands

Alcohol is a cultural staple in society and has been for thousands of years. Alcohol companies are an example of sin stocks, and they can perform well during recessions or other challenging circumstances.

Constellation Brands (NYSE: STZ) is an alcoholic beverage company that sells various brands of beer, wine, and spirits. It's primarily known for selling Modelo and Corona beer in the United States.

Constellation Brands does come with some risks. It's the largest beer import company in the United States. Trade tensions have arisen between the United States and Mexico, threatening tariffs that could impact Constellation Brands, since it brews Modelo and Corona in Mexico. Investors should monitor the situation, though it didn't prevent Warren Buffett's Berkshire Hathaway from recently adding the stock to its portfolio.

Meanwhile, the stock yields nearly 2.3% at its current share price, and earnings comfortably back the payout. Analysts estimate Constellation Brands will grow earnings by 9% annually over the long term. Such growth makes the stock look like a bargain, trading under 13 times 2025 earnings estimates. The company's strong brands, healthy dividend, and compelling valuation could reward buyers willing to hold shares until tariff concerns subside.

3. Colgate-Palmolive

Household staples tend to stick to consumer budgets. Colgate-Palmolive (NYSE: CL) is a conglomerate that sells household products for oral health, personal hygiene, home cleaning, and pet health. Its famous brands include Colgate, Palmolive, Speed Stick, Murphy Oil Soap, Hill's Pet Nutrition, Ajax, and Irish Spring. Consumers know these brands and generally aren't going to cut items like toothpaste and dish soap from their shopping lists.

Colgate-Palmolive has been in business for many decades. It's another Dividend King, with 62 consecutive annual dividend raises. Yet, it continues to grow, and analysts expect earnings to compound at just over 6% annually over the long term. Investors buying shares today will enjoy a 2.2% dividend yield, and Colgate-Palmolive's earnings cover the dividend nearly twice over.

The stock won't make you rich, but it's a legitimate fortress-like investment. The stock's beta is remarkably low at just 0.36. That means if the stock market were to crash, Colgate-Palmolive would likely drop far less than the broader market. That peace of mind and steady growth make it a smart buy for investors trying to minimize volatility.

Should you invest $1,000 in Coca-Cola right now?

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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Colgate-Palmolive. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.