3 Top Dividend Stocks to Buy With $1,000
When assessing income-generating stocks, one important thing to note is the yield, which measures the percentage the company pays out in dividends in relation to its stock price. As you analyze, you might come upon an expensive stock with a high share price and a higher payout per share, but it generates a lower yield for each share. You might also find cheaper stocks that distribute a much lower payout, but each share is getting a higher yield on that payout. All else being equal, you can buy more shares of cheaper stock with a higher yield, which increases the payout you get relative to your investment.
So, let's say you had a specific amount of money to invest -- $1,000. How much would you earn in dividend payouts if you invest it in three of what are considered top dividend stocks -- all with stocks trading at different price points and yields? Let's take a look.
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Source Fool.com
