3 High-Yield Dividend Stocks You Can Buy With Less Than $100 Right Now

After watching the benchmark S&P 500 index climb by 24% in 2023, investors might assume that all the good stocks are out of their price range. Nothing could be further from reality. Just $100 is more than enough to buy any of the high-yield dividend stocks on this list.

The businesses that underlie these three stocks offer dividend payments that have risen steadily for years. They’re also well-positioned to continue raising their payouts in the years to come. Read on to see why they look like smart stocks to buy now for just about any investor who wants to start building a stream of passive income.

Realty Income

Realty Income (NYSE: O) is one of the largest real estate investment trusts (REITs) that collects rent on commercial property it owns but doesn’t operate. As a REIT, it can legally avoid paying income taxes if it distributes nearly all its profits to shareholders as a dividend.

At recent prices, Realty Income offers a 5.4% dividend yield, and it sends out payments every month. Last December, the company raised its payout for the 105th consecutive quarter.

The steadily rising cash flows that Realty Income has reported for decades seem likely to continue. The company has tenants sign net leases that transfer all variable costs of building ownership, such as maintenance and taxes, to the tenants. With annual rent raises written into long-term leases, cash flows are highly predictable as long as tenants can make ends meet.

Realty Income’s large and diverse portfolio has impressed the credit rating agencies. The REIT boasts an A3 rating from Moody’s that allows it to borrow at significantly lower rates than its smaller peers.

Shares of Realty Income have risen since the Federal Open Market Committee indicated potential interest rate cuts in December. Despite the bump, the stock is still trading for around 13.7 times trailing funds from operations (FFO), a proxy for earnings used to evaluate REITs. This valuation is more than fair and makes…