The Smartest Dividend Stocks to Buy With $1,000 Right Now

• Chevron is an integrated vigor institution with an awesome output and an awesome dividend history.

• Bristol Myers has a precocious yield, but the drugmaker is retired of favor. History suggests it volition emergence again.

• Consumer staples shaper Clorox is closing successful connected Dividend King presumption with focused approach.

• 10 stocks we similar amended than Bristol Myers Squibb ›

The S&P 500 index is offering investors a tiny 1.2% dividend yield. But you tin bask importantly higher yields from industry-leading companies successful the energy, healthcare, and user staples sectors without taking connected a important magnitude of risk. Here's wherefore Chevron (NYSE: CVX), Bristol Myers Squibb (NYSE: BMY), and Clorox (NYSE: CLX) could beryllium the smartest places for you to put $1,000 close now.

Chevron's dividend output is 4.5%, and the payout has been accrued annually for 38 consecutive years. While some of those are breathtaking numbers, the dividend streak is the much awesome figure. That's due to the fact that the institution operates successful the highly volatile vigor sector, and it has achieved this streak acknowledgment mostly to its elite concern model.

First, Chevron is diversified crossed the full vigor worth chain. This helps to adjacent retired fiscal show done the vigor cycle. Second, the institution has agelong focused connected having a rock-solid equilibrium expanse (the debt-to-equity ratio is simply a precise debased 0.22). The institution has proved that it not lone tin past the ups and downs of commodity prices, but that it besides tin thrive contempt the industry's inherent volatility.

Because vigor is captious to the planetary economy, astir investors should person immoderate vulnerability to it. A $1,000 concern successful Chevron, which volition nett you astir six shares of the stock, is simply a reasonably low-risk mode to get that exposure.

Pharmaceutical elephantine Bristol Myers Squibb is presently offering a 4.7% yield. The dividend hasn't been accrued each azygous twelvemonth for decades, similar Chevron's dividend, but it has trended mostly higher implicit time. What's breathtaking astir Bristol Myers Squibb contiguous is that investors are punishing it for what are, essentially, mean concern dynamics.

Their superior interest appears to beryllium the patent expirations the institution is facing successful the adjacent fewer years. Patent protections are, by design, time-limited, truthful expirations are a precise communal occurrence.

The occupation is that these alleged patent cliffs effect successful melodramatic declines successful gross and nett from important drugs. But Bristol Myers' agelong past of occurrence is wide grounds that it knows however to negociate these situations and proceed to thrive implicit the agelong term.