The Smartest Dividend Stocks to Buy With $500 Right Now

Sun, Sep 14, 2025, 12:06 PM 5 min read

• Realty Income has been very selective in making new investments in the current environment.

• EPR Properties is limiting its investment rate to $200 million to $300 million this year.

• W.P. Carey doesn't currently plan to issue new equity to fund property investments in 2025.

• 10 stocks we like better than Realty Income ›

Interest rates can significantly impact certain types of dividend stocks. Real estate investment trusts (REITs) are highly rate-sensitive. Their values tend to decline as rates rise and rally as rates fall due to the impact these changes have on their businesses.

Many expect the Federal Reserve to resume its rate cuts soon, which bodes well for REITs because lower rates can reduce borrowing costs and support higher property values. Realty Income (NYSE: O), EPR Properties (NYSE: EPR), and W.P. Carey (NYSE: WPC) are three of the smartest ones to buy with $500 right now.

Realty Income is less sensitive to interest rates than many REITs due to its elite balance sheet and diversified global operations (retail, industrial, gaming, and other properties across the U.S. and Europe). That allows it to borrow money at lower rates than many of its peers. For example, it recently issued euro-denominated notes at interest rates of 3.375% and 3.875%. That enabled it to buy more income-generating properties in the quarter.

The company currently anticipates investing $5 billion this year. Although that's an increase from its initial outlook of $4 billion, it is still below its peak of over $9 billion annually when rates were lower. Realty Income is being intentionally selective, closing only 2.7% of the $43 billion in deals it sourced in the second quarter as it maintains a disciplined approach to maximize its returns while navigating its currently higher capital costs.

Falling rates could enable Realty Income to access more low-cost capital and increase its growth rate. Faster growth could boost the company's valuation. In the meantime, investors who buy now can lock in a nearly 5.5% dividend yield, turning a $500 investment into about $27 in annual dividend income.

EPR Properties currently expects to invest between $200 million and $300 million this year in new properties. This moderate investment pace reflects a disciplined approach designed to maintain financial stability by utilizing only post-dividend free cash flow, non-core property sales, and its balance sheet resources within its current leverage ratio. This strategy enables the experiential property REIT (which includes theaters, attractions, and similar properties) to grow its funds from operations (FFO) per share and dividend at a 3% to 4% annual rate.