The Smartest Dividend Stocks You Can Buy Right Now With $400

Are you a novice investor starting with just a small amount of money – let’s say $400? Then it pays to invest in shares that meet your needs. While it may be tempting to think that starting small means taking on more risk, research shows the opposite is true. Wealthier investors are actually better able to bear risks and gamble on high returns than small investors. So if you start with just $400, you’re better off investing in low-risk assets. Things like index funds and blue chip dividend stocks generally work well for retail investors because they are less risky than penny stocks, crypto and other gambling games. With that in mind, here are three smart dividend stocks you can buy right now for $400.

Food Couche-Tard

Nutrition Couche-Tard Inc (TSX:ATD) is a Canadian gas station/convenience store company that operates the famous Circle K chain. The company is highly respected for its long-term track record in compounding, with profits growing 189% over the past decade.

Alimentation Couche Tard shares became cheap last year when the company tried to buy out on 7/11. The company offered $40 billion for its acquisition target, an amount that could only have been raised through loans or stock issuances. ATD built its reputation on prudent acquisitions, which it financed with retained earnings rather than heavy borrowing. This huge offer for 7/11 seemed inconsistent with ATD’s past approach, and 7/11’s value was also somewhat highly valued. Investors began to worry that the company had lost its way. Fortunately, ATD withdrew its offer for 7/11, leaving a highly profitable collection of quality assets that generate strong income and are sensibly valued.

EQB Inc

EQB Inc (TSX:EQB) is a Canadian bank without branches. The shares pay dividends, and while the current yield (2.5%) is not high, it has grown rapidly over time. Over the past five years, EQB has grown its dividend at 23.5% per year. That’s an extremely high dividend growth rate, and this was largely supported by the high growth of EQB’s underlying business. EQB Inc saves a lot of money with its branchless model and locks in long-term financing by issuing guaranteed investment certificates (GICs) instead of checking accounts. Overall, it’s a dividend stock well worth investigating.

Fortis

Fortis Inc (TSX:FTS) is a Canadian utility company. The stock yields are 3.5% and the dividend payout has grown 5.1% per year over the past five years. As a regulated utility company, Fortis has very stable income. People would rather sell their car than have it get cold in the winter. But unlike many Canadian utilities, it’s also growing, with revenues up 4.9% per year over the past five years. Fortis is currently engaged in a major investment plan that will increase the value of its assets and obtain regulatory approval for interest rate increases. This will increase Fortis’s income, making the major expenditure very worthwhile. Fortis is a dividend share that has done well in the long term.