What kind of stocks do you buy when the stock market is highly volatile? Ideally, you'll want to find stocks that can still rise despite the headwinds. Stocks that pay solid dividends get extra points. But their prices can't be so high that many investors can't afford them.
I've identified several candidates that check off all the boxes. Here are my picks for the smartest dividend stocks to buy with $150 right now.
1. Dominion Energy
Dominion Energy's (D +0.44%) share price has risen modestly year to date. But that's a fantastic performance when the S&P 500 (^GSPC 1.33%) is in correction. Dominion has been able to handily beat the market primarily because investors know its business is rock-solid no matter what happens with stocks or the economy.
NYSE: D
Key Data Points
Utility stocks tend to hold up well during volatile markets. Dominion Energy provides electricity service to 3.6 million customers in the growing markets of Virginia, North Carolina, and South Carolina. It also provides natural gas service to around 500,000 South Carolina customers. Notably, Virginia is a hub for data centers, which represent a great growth opportunity for Dominion.
The company's reliable cash flow allows it to pay an attractive dividend. Its forward dividend yield currently stands at 4.75%.
You can pick up one share of Dominion Energy for around $56. I think buying the stock will pay off nicely. Dominion expects to grow its earnings per share by 5% to 7% annually. With its dividends included, it could easily generate double-digit percentage total returns.
2. Enterprise Products Partners
Enterprise Products Partners (EPD +0.75%) is another great stock that's seemingly defying gravity these days. Units of the limited partnership (LP) have jumped around 7% despite the overall market downtrend.
NYSE: EPD
Key Data Points
Like Dominion Energy, Enterprise Products Partners has a resilient business model. The company operates over 50,000 miles of pipeline that transport crude oil, natural gas, natural gas liquids, and other hydrocarbons. It also owns other assets including natural gas processing trains and liquids storage facilities.
Enterprise pays an ultra-high forward distribution yield of 6.39%. The company has an outstanding track record of rewarding unitholders, increasing its distribution for 26 consecutive years. Importantly, Enterprise Products Partners has generated reliable cash flow per unit even during challenging periods such as the financial crisis of 2007 and 2008 and the COVID-19 pandemic of 2020. This consistent cash flow makes the LP's distributions highly dependable.
One unit of Enterprise Products Partners currently costs less than $34. With artificial intelligence (AI) driving higher demand for natural gas in the U.S. over the next five years and U.S. petrochemicals enjoying a solid cost advantage, Enterprise should be able to continue growing -- and keep paying those juicy distributions.
3. Verizon Communications
You don't have to focus only on energy and utilities to make solid returns in the turbulent market environment. Verizon Communications (VZ 0.05%) is a global telecommunications giant whose share price has soared 14% year to date.
NYSE: VZ
Key Data Points
How is Verizon performing so well? For one thing, the company's fourth-quarter results reported on Jan. 25, 2025, were solid. Verizon delivered revenue and earnings growth. It also added nearly 1 million postpaid mobile and broadband subscribers, the best quarterly result in over 10 years.
The company should have more growth opportunities fueled by AI. Verizon recently introduced an expanded AI strategy and new solutions for hyperscalers, cloud services providers, and global enterprises. Big tech companies, including Alphabet's Google Cloud and Facebook parent Meta Platforms, are among the early adopters of the new AI offerings.
Verizon remains a favorite for income investors with its forward dividend yield of 5.94%. The company has increased its dividend for 18 consecutive years.
If you buy one share of Dominion Energy and one unit of Enterprise Products Partners, you'll have roughly $60 left from an initial amount of $150. That's more than enough to scoop up a share of Verizon, which currently trades at under $46.
