Dividend stocks are often regarded as a compelling investment option. They not only offer a steady and growing stream of dividend income but also tend to exhibit significant stock price appreciation over the long term. This dual benefit can be instrumental for investors seeking to enhance their wealth steadily over time.

Among the myriad of dividend stocks available in the market, three stand out for their attractive yields and history of dividend growth: Johnson & Johnson (NYSE: JNJ), Invitation Homes (NYSE: INVH), and NextEra Energy (NYSE: NEE). Each of these companies currently provides dividend yields exceeding 3%, which is more than double the average dividend yield of the S&P 500 index.

Investors looking to make a $1,000 investment may find that these stocks offer not only the potential for reliable dividend income but also the opportunity for significant increases in the value of their investments in the years to come. For instance, a $500 investment in these stocks could potentially generate an attractive and growing stream of passive income.

Johnson & Johnson: Renowned for its stability and reliability, Johnson & Johnson currently boasts a dividend yield of 3.3%. This means that for every $100 invested in the company, shareholders can expect to receive $3.30 in dividend income annually. The healthcare juggernaut possesses one of the strongest dividends globally, being one of only two companies to hold an AAA-bond rating, a distinction that surpasses even the U.S. governments credit rating.

The financial strength of Johnson & Johnson is striking, with a robust balance sheet showing only $13.5 billion in net debt, countered by $38.8 billion in cash against $53.3 billion of liabilities. This financial posture is particularly impressive for a company valued at $380 billion by market capitalization, especially considering that it generated $20 billion in free cash flow last year, which comfortably covered its $11.8 billion dividend payout.

In a testament to its commitment to returning value to shareholders, Johnson & Johnson recently announced a 4.8% increase in its dividend, marking 63 consecutive years of dividend growth. This impressive streak secures its place among the elite group of Dividend Kings, companies recognized for raising their dividends for 50 or more consecutive years. Moreover, Johnson & Johnson is heavily invested in research and development, allocating a substantial $17 billion last year, along with pursuing strategic acquisitions that have totaled over $30 billion in the past year. These efforts are set to support sustained dividend growth in the future.

Invitation Homes: This real estate investment trust (REIT) is another attractive option for dividend-seeking investors. Invitation Homes currently offers a dividend yield of 3.4%. The company generates a reliable income stream by owning and managing over 110,000 rental homes in premier housing markets across the country.

The strategic ownership of properties in areas characterized by robust population and job growth enhances demand for rental housing, ensuring high occupancy rates. This dynamic environment enables Invitation Homes to consistently raise rental prices, underpinning its ability to maintain high-yield dividends for its shareholders. By focusing on markets that are thriving economically, Invitation Homes positions itself well for continued success in the competitive real estate landscape.

In conclusion, investing in dividend stocks like Johnson & Johnson and Invitation Homes can present a strategic avenue for individuals looking to build wealth over time. With their solid financial foundations and proven track records of dividend growth, these companies exemplify the potential for passive income generation in a diversified investment portfolio.