£500 to invest? I’d buy these dividend shares for solid returns!

Dividend stocks make up the majority of my portfolio. I look for stocks that provide stable returns and aim for some upward movement in the share price.

So what would I do if I had £500 to invest now? Yes, I have an amount to invest now, and I want to divide it three ways – all income shares.

This is my choice.

Fast telecom provider

I am a dividend stock with the potential to grow, and Airtel Africa (LSE:AAF) certainly offers growth. Telecommunications in emerging markets is clearly an area with great potential.

The telecom outfit, which currently pays a 3.5% dividend yield, also offers payment solutions. Increasingly, we are seeing telecommunications companies moving into payment solutions and financial markets. And it makes sense because many of us use our phones for banking.

Less than half of adults in Africa have a bank account. Clearly, the market is ripe for growth, assuming the conditions are there to support – However, the current macroeconomic situation can be challenging.

Airtel Africa trades with a price-to-earnings ratio of 8.6, while the discounted cash flow model – which is naturally subject to assumptions about future cash flows – suggests the stock should be priced at 500p. That’s 300% above the current price.

I haven’t bought this stock yet, but I want to add it to my portfolio next week.

UK renewables

Greencoat UK Wind (LSE:UKW) gives me a 4.8% dividend yield and plenty of growth potential. The trust will increase its dividend payout in line with CPI, which is very good in the current environment. In addition, I am also quite confident about the UK wind sector.

One thing that makes me bullish is the anticipated end to the onshore wind moratorium. Onshore wind can be twice as efficient as offshore wind, making it one of the cheapest sources of energy.

The UK is a windy country, and that bodes well for the sector’s potential. But I expect to see more developments in battery technology in the coming years to deal with the temperamental nature of the wind. I am already a shareholder, but I want to buy more.

Investment supermarket

I use it Hargreaves Lansdowne (LSE:HL) for investment and I also invest in the stock market and stocks.

The Bristol-based company has 1,754,000 active clients, a number that continues to grow, albeit more slowly than during the pandemic. It is the leading investment platform in the UK market, but faces increased competition from new entrants.

I will buy more because of investment trends, with more people taking investments into their own hands, and because the platform is, in many ways, superior to its competitors. Hargreaves is also investing £150m to improve its offering.

Despite having huge growth potential, I also find the 4.6% dividend yield particularly attractive.