3 Top Dividend Stocks Yielding Over 3% to Buy With $500 Right Now

Core Viewpoint - Dividend stocks can provide a combination of attractive and growing dividend income along with stock price appreciation, helping investors grow their wealth steadily [1] Group 1: Dividend Stocks Overview - Johnson & Johnson, Invitation Homes, and NextEra Energy are highlighted as top dividend stocks, each offering yields over 3%, significantly higher than the S&P 500's yield of 0.13% [2] - These companies have a strong history of increasing their dividend payments, which is expected to continue [2][13] Group 2: Johnson & Johnson - Johnson & Johnson currently has a dividend yield of 3.3%, generating $3.30 of dividend income annually for every $100 invested [4] - The company boasts a AAA-bond rating and a strong balance sheet with $13.5 billion in net debt against $38.8 billion in cash, supporting its $11.8 billion dividend outlay from $20 billion in free cash flow last year [5] - The company has increased its dividend by 4.8%, marking 63 consecutive years of growth, placing it among the elite Dividend Kings [6] - Johnson & Johnson invests heavily in R&D, with $17 billion spent last year, and has made over $30 billion in acquisitions, which are expected to support future dividend growth [7] Group 3: Invitation Homes - Invitation Homes has a dividend yield of 3.4% and owns or manages over 110,000 rental homes in high-demand markets, ensuring steady income [8] - The company has acquisition channels for purchasing newly built homes and currently has over 2,000 homes under construction, contributing to its growth [9] - Invitation Homes raised its dividend by 3.6% last December and has consistently increased its dividend since going public in 2017 [9] Group 4: NextEra Energy - NextEra Energy offers a dividend yield of 3.4% and generates stable cash flow from electricity demand and regulated rate structures [10] - The company is a leading investor in renewable energy infrastructure, expecting to grow its adjusted earnings per share at the high end of its 6% to 8% annual target range through at least 2027 [11] - NextEra anticipates a 10% annual increase in its dividend payout, having achieved a 10% compound annual growth rate over the past 20 years [12]