2 Dividend Stocks to Buy With $500

With online brokers offering minimal (or even zero) transaction fees on most stock trades, investors can efficiently put small amounts of capital to work in their portfolios. You can benefit from individual stock returns whether you're investing thousands -- or hundreds -- of dollars in a stock. And with dividend stocks, you can receive income as you wait for capital appreciation to accrue over the coming years.

Ideally, you'll find investments that deliver a balance between these two return categories. Good stock candidates will tend to be businesses with unusually strong growth and profit outlooks, too. Let's look at two such stocks that belong on your income watch list right now.

With a single Coca-Cola (NYSE: KO) investment, you get just about everything an investor could want from a dividend stock. You'll own a business with a dominant market position in an attractive global industry, to start. Toss in Coke's industry-leading profitability, with its operating margin roughly double 's level. And the beverage giant is expanding sales at a decent clip, meaning you don't have to sacrifice on growth to own this mature business. Coke last reported an 11% organic sales increase in fiscal Q3.

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Source Fool.com