The Best Dividend Stocks to Buy With $2,000 Right Now

The S&P 500(SNPINDEX: ^GSPC) index is offering a yield of just 1.1% today. That will not be high enough to satisfy most dividend investors. However, 4.2%, 5.7%, and a huge 9.4% are all dividend yields that will likely be pleasing to the ear. Here’s a look at the companies that offer those yields: Bank of Nova Scotia(NYSE: BNS), W.P. Carey(NYSE: WPC), and Ares Capital (NYSE: ARCC), respectively.

They may not be suitable for all investors, but you are likely to find one or more that are worth adding to your portfolio right now.

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Bank of Nova Scotia is a low-risk turnaround

The average U.S. bank yields around 2.5%. Bank of Nova Scotia’s yield is a far more compelling 4.2%. When a company’s yield is out of line with its competitors, however, you have to ask why. In this case, the answer is that Bank of Nova Scotia, usually referred to simply as Scotiabank, is undergoing a turnaround.

What’s notable here, however, is that this is not a high-risk endeavor. Scotiabank is one of the largest banks in Canada, a country with a highly regulated banking industry. Scotiabank is one of a small number of large banks that basically have entrenched industry positions. It has a very strong foundation, and it has paid dividends every year since 1833.

The problem with Scotiabank is that it chose to expand into Central and South America, while its Canadian peers expanded into the U.S. That was a mistake, and management is now working to realign its business so it can compete better with its peers. That basically means exiting less desirable markets and focusing on Mexico, the U.S., and Canada. The Canadian financial giant has already made significant progress in this effort, so even more conservative investors will find it attractive.

A $2,000 investment in Scotiabank will allow you to buy 26 shares.

It’s back to growth for W.P. Carey

In late 2023, net lease real estate investment trust (REIT) W.P. Carey surprised investors with a dividend cut. Management made the tough call to exit the struggling office sector in one quick move, which necessitated a dividend reduction. The quarter after the reset, however, the dividend started to increase again. It has been increased every quarter since, which was the pace that existed before the cut.

Ultimately, the business reset was made from a position of strength, not weakness. In fact, W.P. Carey is one of the most diversified REITs you can own, with assets across the warehouse, industrial, and retail sectors and properties in both the U.S. and Europe. Under the net lease structure, tenants assume responsibility for almost all property costs, including…