For many investors, $5,000 is a good amount to invest in the stock market. It's large enough that you can make hundreds of dollars on a 10% return -- and if the stock pays a dividend of 4% or more, that would generate at least $200 in additional income. At the same time, it's probably not a significant enough sum to put your retirement or long-term plans entirely at risk if the investment tanks. 

If that's the case and you have $5,000 you can spare for your portfolio now, consider putting it into Novartis (NVS 1.01%) and Paramount Global (PARA -5.42%). With these investments, you'll collect dividends with a far better yield than the S&P 500's 1.8% payout, and the companies' growth could also pay off with long-term appreciation of the share price.

1. Novartis

Shares of Swiss drugmaker Novartis are down 12% this year, which isn't bad, given that the S&P 500 has fallen by 23% over the same stretch. The diversified healthcare company makes medicines that are focused on five key therapeutic areas -- hematology, solid tumors, immunology, neuroscience, and cardiovascular. 

The company is a bit of a growth machine, projecting that its annual growth rate will be at least 4% through 2026 as it has new products coming to market that will generate billions in revenue. Among them are more than 20 products that the company anticipates could be blockbusters (i.e., treatments that generate at least $1 billion in annual peak sales). One of the most promising is cholesterol drug Leqvio, which the Food and Drug Administration approved last year. The company projects that Leqvio may contribute over $2 billion in peak annual revenue.

Today, its core business centers around Cosentyx (for psoriasis) and Entresto (for heart failure), two products that have accumulated more than $4.6 billion in sales through the first two quarters of the year -- that's more than 18% of Novartis' total revenue of $25.3 billion. Year to date, the company's net sales have been flat. But many of its individual products generated impressive growth. Sales of Entresto have risen 32% year over year to $2.2 billion. Breast cancer treatment Kisqali has also experienced a 30% increase in revenue, bringing in $547 million over the first two quarters.

However, despite its strong and robust business, shares of Novartis are trading near their 52-week low of $74.09. The stock now trades at a price-to-earnings (P/E) multiple of less than eight. Meanwhile, the average healthcare stock trades at a P/E of nearly 20.  Not only is Novartis cheap, but it also pays a dividend that yields 4.4% annually. On a $5,000 investment, that would bring in $220 in dividend income over the course of a year.

With its low valuation, high yield, and robust pipeline, Novartis makes sense in just about any portfolio.

2. Paramount Global

Entertainment company Paramount Global has a diverse business that generates revenue from three key units: TV media, direct-to-consumer (DTC), and filmed entertainment. It's best-known for Paramount Pictures films, CBS, Showtime, and its Paramount+ streaming service. 

The company has 64 million global DTC subscribers (Paramount+ is included within that tally) --  a modest total compared to giants Netflix and Walt Disney, whose streaming services top more than 220 million subscribers. But now that Paramount+ subscriptions will be offered as a benefit for members of the Walmart+ loyalty program -- the big-box retailer's answer to Amazon Prime -- the streaming service may soon experience an influx of users, which could help increase its popularity and lead to even better growth down the road.

In the second quarter, it was the company's DTC and filmed entertainment segments that allowed Paramount to generate sales of $7.8 billion, up 19% from a year ago. DTC revenue grew by 56% to $1.2 billion. And with consumer behaviors largely returning to their pre-pandemic norms, the company also saw a big uptick from filmed revenue last quarter, when sales more than doubled to $1.4 billion. By comparison, its TV media business rose by just 1% to $5.3 billion.

Despite the strong performance thus far, shares of  Paramount have plummeted 35% year to date, and it recently hit a new 52-week low of $18.80. The last time it was at those levels was during the brief market crash of early 2020. Investors are heavily discounting the stock as it trades at a price-to-earnings ratio of less than four. By comparison, cable and entertainment giant Comcast trades at a multiple of more than nine.

Paramount also offers a high dividend yield of around 5% at the current share price. On a $5,000 investment, that would mean approximately $250 in annual dividend income.

Overall, Paramount is a solid stock to buy now, particularly given its depressed valuation. Warren Buffett's Berkshire Hathaway has also recognized the value in the business, investing billions in it earlier this year. But given that the stock has fallen further since then, investors today have a chance to buy it at a better price than Buffett did.