3 Great Dividend Stocks to Buy for Those With $175 or Less to Invest

3 Great Dividend Stocks to Buy for Those With $175 or Less to Invest

One of the many great things about investing in dividend stocks is that theydon'ttypically costa lot ofmoney, makingit easy for beginners to get started. Meanwhile, you can routinely buy more shares as you have additional cash to invest, enabling youto steadily grow your dividend income.

Several great dividend stocks currently cost less than $175 per share, includingEastGroup Properties(NYSE: EGP),Mid-America Apartment Communities(NYSE: MAA), andExtra Space Storage(NYSE: EXR). Buying any one of that trio would set you up to generate a growing stream of passive dividend income.

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Decades of dividend stability and growth

EastGroup Properties has been a terrific dividend stock over the years. The real estate investment trust (REIT) has paid 179 consecutive quarterly dividends. It has either maintained or increased its payout for 32 straight years, raising it in 29of thoseyears, including the past 13 in a row. It most recently boosted its payment by 10.2% in August, raising the quarterly level to $1.40 per share, or $5.60 annually.

Theindustrial REIT'sstock price is currently around $172 per share. That gives it a roughly 3.3%dividend yield,which ismore than double theS&P 500'sdividend yield of 1.2%.

EastGroup Properties has built half its portfolio from the ground up, investing $3 billion to develop 263 properties. It builds in business park settings, which increases returns and lowers risk. The REIT will also acquire properties in its existing markets, which include leading cities across the Sun Belt region, typically focusing on those withvalue-addopportunities, such as redevelopment, expansion, and leasing upside. These investments have steadily grown its portfolio and rental income, enabling the REITto routinely raise its dividend.

Built-in growth ahead

Mid-America Apartment Communities, MAA, also has an excellent record of paying dividends. The apartment-focusedresidential REIThas paid 123 consecutive quarterly dividends ateitherthe same rate as the prior payment or a higher level. It has raised its payment for 14 yearsin a row, including by 5% last December to $1.47 per share, or $5.88 annually.

The landlord's stock price is currently around $161 per share. That gives it a 3.7% dividend yield.

MAA owns a growing portfolio of apartment communities across the Sunbelt region. It focuses on metro areas benefiting fromstrongemployment and job growth, which drives demand for apartments.

The REIT is investing heavily in expanding its apartment portfolio. It invested over $450 million into five recently developed or acquired properties that it's currently leasing up. Meanwhile, it's investing nearly another $1 billion into eight additional development projects that should stabilize over the next few years. These new investments will grow its rental income,which should enablethe REIT to continue raising its dividend.

The leader in itsspace

Extra Space Storage has grown its dividend briskly over the years. While theself-storage REIThasn't increased its payoutevery year, it has boosted its dividend by nearly 250% over the past decade. It most recently raised the payment by 8% in February 2023.

Shares of the REIT currently cost less than $169 apiece. That gives it a 3.9% dividend yield at the current rate.

Extra Space Storage is the leader in the U.S. self-storage sector, with a 14% market share. It has grown through a series of acquisitions and other platform additions. The companymostrecently merged with Life Storage in a $15 billion deal to create the U.S. self-storage market leader. ExtraSpacehas also built the sector's leading third-party management platform and provides bridge loans to self-storage developers. Those programs open the doors to additional growth opportunities as the REIT often acquires properties it manages and developments it funds. These investments have helped grow the REIT's portfolio and income, enabling it to increase its dividend.

Low-cost ways to build dividend income

EastGroup Properties, MAA, and Extra Space Storage havegreatrecords of paying dividends. While they haven't increased their paymentsevery single year, they have raised their dividends many times over the decades. That upward trajectory should continue.With relatively affordable price points, they're great dividend stocksto buyfor those seeking to buildstreams ofstable and steadily rising dividend income.

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Matt DiLallo has positions in EastGroup Properties and Mid-America Apartment Communities. The Motley Fool has positions in and recommends Mid-America Apartment Communities. The Motley Fool recommends EastGroup Properties and Extra Space Storage. The Motley Fool has a disclosure policy.