2 No-Brainer, High-Yield Stocks to Buy With $2,000 Right Now

Published in Stocks and Investing on Sunday, August 10th 2025 at 3:55 GMT by The Motley Fool
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2 No-Brainer High-Yield Stocks to Buy With $2,000 Right Now

In the ever-evolving landscape of investing, finding reliable high-yield stocks that offer both stability and attractive returns can feel like striking gold. As we navigate the economic uncertainties of 2025, with inflation cooling but interest rates still influencing market dynamics, dividend-paying stocks have emerged as a beacon for income-focused investors. This article highlights two standout high-yield stocks that are considered "no-brainer" buys, especially for those with a modest $2,000 to invest. These selections are based on their strong fundamentals, consistent dividend histories, and resilience in volatile markets. By allocating $1,000 to each, investors can build a diversified portfolio that generates passive income while positioning for long-term growth.

The first stock on the list is Realty Income Corporation (NYSE: O), often dubbed the "Monthly Dividend Company." Realty Income is a real estate investment trust (REIT) that specializes in owning and managing a vast portfolio of commercial properties leased to essential retailers like pharmacies, convenience stores, and dollar stores. What makes it a no-brainer? For starters, its dividend yield currently hovers around 5.5%, which is significantly higher than the S&P 500 average. This yield translates to reliable monthly payouts, providing investors with a steady cash flow that can compound over time. With $2,000, you could purchase roughly 30 shares (assuming a share price of about $65), generating approximately $110 in annual dividends based on current rates.

Realty Income's appeal lies in its business model, which emphasizes long-term, triple-net leases. These agreements shift most property expenses to tenants, minimizing operational risks for the REIT. The company has an impressive track record of dividend growth, having increased its payout for 30 consecutive years, even through economic downturns like the 2008 financial crisis and the COVID-19 pandemic. In 2025, as e-commerce continues to reshape retail, Realty Income's focus on recession-resistant tenants positions it well. For instance, its properties include leases with giants like Walgreens and Dollar General, which thrive regardless of economic cycles. Analysts project modest revenue growth driven by strategic acquisitions, such as its recent expansion into data centers and international markets. Despite occasional market volatility—such as rising interest rates pressuring REIT valuations—Realty Income's low debt levels and high occupancy rates (over 98%) make it a defensive play. Investors should note that while share prices have fluctuated, the total return, including dividends, has historically outperformed broader indices over decade-long periods. For those starting with $1,000, this stock offers a low-risk entry into real estate without the hassles of direct property ownership.

Shifting gears to the energy sector, the second no-brainer pick is Enterprise Products Partners L.P. (NYSE: EPD), a master limited partnership (MLP) that operates one of the largest midstream energy infrastructures in North America. EPD focuses on pipelines, storage, and transportation of natural gas, crude oil, and refined products, making it a critical player in the energy supply chain. Its current dividend yield stands at an enticing 7.2%, one of the highest in its peer group, which could yield about $144 annually on a $1,000 investment (with shares priced around $29, allowing for roughly 34 shares).

What sets EPD apart as a high-yield gem? Unlike upstream oil producers that swing with commodity prices, EPD's midstream operations generate fee-based revenues, providing stability even in low-oil-price environments. The company has raised its distribution for 26 straight years, boasting a distribution coverage ratio of over 1.6x, which indicates plenty of cushion for sustaining and growing payouts. In the context of 2025's energy transition, EPD is well-positioned with its extensive network supporting both traditional fossil fuels and emerging renewables like hydrogen transport. Recent expansions, including new pipelines in the Permian Basin, underscore its growth potential amid rising U.S. energy exports. The global push for energy security, especially post-geopolitical tensions, further bolsters demand for EPD's services.

Investors with $2,000 might appreciate EPD's tax advantages as an MLP, where distributions are often treated as return of capital, deferring taxes until shares are sold. However, this comes with K-1 tax forms, which some find cumbersome, though digital tools have simplified this. Risks include regulatory changes in the energy sector or prolonged shifts away from fossil fuels, but EPD's diversified assets and strong balance sheet mitigate these. Analysts forecast steady earnings growth, driven by volume increases and efficiency gains, potentially leading to mid-single-digit distribution hikes annually.

Why buy these now with $2,000? Both stocks are trading at reasonable valuations—Realty Income at a price-to-funds-from-operations (P/FFO) multiple of about 14, and EPD at an enterprise value-to-EBITDA of around 9—suggesting they're undervalued relative to historical averages. In a market where tech stocks dominate headlines but offer minimal yields, these high-yielders provide ballast. Diversifying across real estate and energy reduces sector-specific risks, and with $1,000 each, you're spreading exposure without overcommitting. Over time, reinvesting dividends could amplify returns via compounding; for example, a 6% average yield on $2,000 might grow to over $3,000 in principal plus income in five years, assuming moderate appreciation.

In summary, Realty Income and Enterprise Products Partners represent timeless high-yield opportunities for conservative investors. They're not flashy growth stories but dependable income engines backed by robust operations and proven management. As interest rates potentially stabilize and economic growth resumes, these stocks could deliver both yield and capital gains. Always consider your risk tolerance and consult a financial advisor, but for those seeking no-brainer buys, starting with these two could be a smart move in 2025. (Word count: 842)

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2 No-Brainer, High-Yield Stocks to Buy With $2,000 Right Now | The Motley Fool

2 No-Brainer High-Yield Stocks to Buy With $2,000 Right Now