Got $1,000? Here Are the Smartest Dividend Stocks to Start With.

Core Viewpoint - The current market is considered expensive, with the Shiller CAPE ratio at 39.6, indicating a potential correction or bear market is likely approaching [1][2] Market Context - Historical data shows that corrections of 10% are common, with the S&P 500 experiencing an average annual correction of at least 10% since 1950, and a 20% correction occurring every three to five years on average [2] Defensive Investment Strategy - Defensive sectors such as healthcare, consumer staples, and utilities are expected to perform well during market corrections and bear markets [3] - Dividend stocks are highlighted as favorable investments during sideways and bear markets due to their income generation [3] Selected Stocks for Mini Portfolio - A mini portfolio of eight stocks, all classified as Dividend Kings (companies that have increased dividends for 50 consecutive years), is recommended for market drawdowns [4] - These stocks are positioned in defensive sectors and offer dividend yields above the S&P 500 index yield of 1.25% [4] Individual Stock Highlights - Coca-Cola (KO): Dividend yield of 2.9%, increased dividends for 63 years, current price around $70.61, market cap $303 billion [5][6] - Procter & Gamble (PG): Dividend yield of 2.86%, increased dividends for 69 years, current price around $147 [7] - Johnson & Johnson (JNJ): Dividend yield of 2.7%, increased dividends for 62 years, current price around $186.57, market cap $450 billion [8][9] - American States Water (AWR): Dividend yield of 2.54%, increased dividends for 71 years, current price around $74.84, market cap $3 billion [10][11] - Northwest Natural Holding (NWN): Highest yield at 4.21%, increased dividends for 70 years, current price around $47 [12] - Genuine Parts (GPC): Dividend yield of 3.3%, increased dividends for 69 years, current price around $127 [13] - Marzetti Co. (MZTI): Dividend yield of 2.21%, increased dividends for 62 years, current price around $172 [13] - Becton, Dickinson (BDX): Dividend yield of 2.35%, increased dividends for 53 years, current price around $178 [14] Total Investment Overview - The total cost to purchase one share of each of these eight stocks is approximately $1,000, creating a defensive income-generating portfolio [15]