Uncle Sam wants you…to have more money. Last week, the $1.9 trillion stimulus package was signed into law. Most Americans will soon receive $1,400 stimulus checks.
The best thing to do with the extra cash coming your way is to pay any outstanding bills and make sure you have a solid emergency fund. If you’ve checked off those boxes, though, investing in stocks is a smart way to put your $1,400 to good use. Here are three stocks to buy that’ll turn your stimulus check into a money machine.
AbbVie (NYSE:ABBV) is a big drugmaker that pays a dividend yielding over 4.7%. You won’t get that kind of return from parking your stimulus check in a savings account. Even better, AbbVie is a Dividend Aristocrat with an impressive track record of 49 consecutive years of dividend increases. The payments you’ll receive in the future will almost certainly be greater than what you’ll get now.
Any stock that both Warren Buffett and ARK Investment Management CEO Cathie Wood like is definitely one you’ll want to check out. The two successful investors no doubt like AbbVie’s dividend, but they probably chose to buy AbbVie just as much for its long-term growth prospects.
It’s true that AbbVie’s growth will take a hit soon. The company expects a year-over-year revenue decline in 2023 when top-selling drug Humira loses U.S. patent exclusivity. But that should only be a short-lived trough. AbbVie looks for a quick rebound beginning in 2024 with revenue growing in the high single digits throughout the rest of the decade.
The company’s lineup includes several fast-rising stars, with newer autoimmune-disease drugs Rinvoq and Skyrizi standing out. AbbVie’s pipeline is also loaded with promising immunology, oncology, and neuroscience candidates. With a great dividend and solid growth prospects, your $1,400 should generate attractive total returns over the long run with this pharma stock.
Brookfield Renewable Partners
Brookfield Renewable Partners (NYSE:BEP) ranks as another outstanding dividend stock that should provide consistent quarterly income. Its dividend currently yields nearly 4.8%.
The company’s middle name highlights its business. Brookfield Renewable Partners is one of the top renewable energy providers in the world. It operates hydroelectric, wind, solar, and storage facilities in North America, South America, Europe, and Asia.
Renewable energy is practically guaranteed to enjoy stronger demand. Countries across the world have set aggressive targets to reduce carbon emissions, and the Biden administration has made renewable energy a top focus. It certainly helps that renewable energy sources such as wind and solar are more cost-effective than their fossil fuel rivals.
Brookfield Renewable is set to capitalize on this growth. The company currently has over 19,000 megawatts of capacity. Its development pipeline could boost that total by 23,000 megawatts. Buying shares of this stock with your stimulus check should pay off nicely over the next decade and beyond.
Enterprise Products Partners
If you’re looking for fantastic quarterly income payments, you’ll probably love Enterprise Products Partners (NYSE:EPD). The midstream energy company currently pays a distribution that yields a whopping 7.6%.
Enterprise Products Partners’ operations are diversified across a wide range of energy services. The company processes, transports, and stores natural gas. It transports and stores natural gas liquids, oil, and other petrochemicals.
The company is also expanding increasingly into renewable energy. Enterprise Products Partners announced a deal earlier this month to buy 100 megawatts of power from a solar project developed by EDF Renewables, a subsidiary of Electricite de France. Its goal is to generate 25% of total power from renewable sources by 2025.
Look for 2021 to potentially be a big year for Enterprise Products Partners. The combination of economic stimulus and widespread availability of COVID-19 vaccines should jump-start travel and boost the company’s business. Those $1,400 stimulus checks should help Enterprise Products Partners. And investing your $1,400 in this stock could help stimulate your financial future as well.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.