With many brokerages offering no-commission trading, there's effectively no minimum amount of cash you can put to work in the stock market. Whether you're investing hundreds or thousands of dollars, you can benefit from the historically strong returns available through owning a diversified portfolio of high-quality equities over many years.

Dividend stocks are a great option for investors who want to invest smaller amounts of capital, because they provide instant passive income that can be automatically reinvested so that you slowly accumulate more shares over time. Assuming you pick some great businesses to hold, this process can result in fantastic returns over many decades.

With that goal in mind, let's look at a few dividend stocks that cost less than $500 per share and have excellent long-term potential.

1. Home Depot

It really pays to be the top dog in an industry -- just ask Home Depot (HD 0.03%). The home improvement giant is far more profitable than its closest rival, Lowe's. It expands sales at a faster clip during market upturns and downturns, too. Home Depot also generates impressive cash flow and has a higher return on invested capital. It's good to be the market-share leader.

Plus, the company offers a more generous dividend. You'll get a 2.2% yield through Home Depot's stock compared to Lowe's 1.8% rate.

Of course, there are risks involved with this business, which is highly sensitive to interest rate moves and the health of the housing market in general. But Home Depot has a proven track record of successfully managing all types of economic cycles. That stability should serve shareholders well over the next several years.

2. Microsoft

Microsoft (MSFT -1.41%) stock pays a relatively low dividend yield of less than 1%. But that payout is still bigger than what Apple shares deliver. The tech giant also sends a huge amount of cash to its shareholders each year despite that relatively low payout rate. Investors received $11 billion of dividends in the past six months from Microsoft, up from $10 billion a year earlier.

You'll struggle to find a business that's in a better financial position to shell out this level of cash. Microsoft's software-as-a-service selling approach is extremely lucrative when attached to its world-leading market-share position. Earnings last quarter jumped 23% to $27 billion.

Investors are excited about the potential for artificial intelligence (AI) to unleash a new era of growth for many of Microsoft's niches, especially its Azure platform. But this business has exposure to several other big growth areas as well, including cybersecurity and video gaming. Diversity like that will buffer investors from the volatility they'd otherwise see when investing in smaller tech companies.

3. McCormick

McCormick (MKC 0.41%) is a great dividend stock that's going through a tough period right now. Shares of the spice and flavorings maker have trailed the S&P 500 by a wide margin since early 2023 as growth slowed following the pandemic spike. Revenue was up just 2% in the most recent quarter after adjusting for currency exchange rate swings.

A rebound is likely on the way, though, with management projecting steadily accelerating sales volumes through all of fiscal 2024. Like peers in the consumer staples industry, McCormick will see pressure from slowing demand and the end of big price hikes tied to inflation.

But this company has boosted its dividend for 38 consecutive years at a compound annual growth rate of 11%. Having that impressive dividend in your portfolio at a discount is an excellent way to bolster your returns over the long term.