:max_bytes(150000):strip_icc()/GettyImages-1249264005-bd68cf12d8f54e1ea42c59bc6a9e2b6c.jpg)
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1249264005-bd68cf12d8f54e1ea42c59bc6a9e2b6c.jpg)
Brazilian oil producer Petroleo Brasileiro (PBR) took the lead for March 2024 among dividend-paying stocks under $25 with the highest forward dividend yield and positive total returns in the past year. The company’s shares returned 52% over the last year, while it enjoyed a forward dividend yield of 18%.
Investors often pick dividend stocks as a relatively stable source of passive income during periods of market volatility or during a bear market. Below, we explore the top four dividend stocks for March 2024 under $25, as measured by forward dividend yield. Our screen includes companies listed on the New York Stock Exchange (NYSE) or the Nasdaq with positive one-year total returns, and it excludes any companies with payout ratios that were either negative or over 100%.
All data are as of March 7, 2024.
Key Takeaways
- Dividend-paying companies make regular distributions of a portion of their profits to shareholders, offering a chance for investors to earn passive income on their holdings.
- A key metric for these stocks is dividend yield, a measure of the yearly dividend amount compared to the current price of the stock that is expressed as a percentage.
- Because a company’s share price is always shifting, the dividend yield also changes at a similar pace.
- The four stocks on the NYSE or Nasdaq with the highest forward dividend yield that also trade for $25 or less as of March 2024 include Petrobras, Jiayin Group, Great Elm Capital Corp., and Angel Oak Mortgage REIT.
- Forward Dividend Yield: 18%
- Sector/Industry: Integrated oil
- Price: $16.70
- Market Cap: $108 billion
- 1-Year Total Return: 52%
Petrobras is a Brazilian corporation, positioned as one of the world’s top oil and gas producers, with a strong focus on exploration and production in deep and ultra-deep waters. The company’s strategic plan from 2024 to 2028 focuses on preparing for a fair and safe energy transition, balancing its current oil and gas portfolio with diversification into low-carbon businesses.The stock had a strong performance over the past year, attributable to higher production volumes and Brent Crude oil prices.
- Forward Dividend Yield: 13%
- Sector/Industry: Finance/ Rental/ Leasing
- Price: $6.17
- Market Cap: $306 million
- 1-Year Total Return: 113%
Founded in 2011, Jiayin Group Inc. is a leading fintech platform in China that aims to streamline connections between underserved borrowers and financial institutions, using advanced analytics and algorithms for risk assessment. For the third quarter of 2023, Jiayin reported loan origination volume increasing by 62% year-over-year, resulting in net revenue growth of 64% over the same period. The company paid a dividend of $0.40 per American depository share (ADS) while formulating plans for the payment of the second tranche of dividends later this year.
- Forward Dividend Yield: 13%
- Sector/Industry: Finance / Investment managers
- Price: $10.75
- Market Cap: $102 million
- 1-Year Total Return: 16%
Great Elm is a business development company that focuses on debt and income-generating equity securities, particularly specialty finance businesses. On Feb. 29, Great Elm announced its fourth quarter and full-year financial results for 2023, highlighting a successful equity raise of $24 million, an increase in net investment income, and the highest cash income year in the company’s history.
- Forward Dividend Yield: 12.6%
- Sector/Industry: Finance/Real Estate Investment Trusts
- Price: $10.13
- Market Cap: $251 million
- 1-Year Total Return: 11.4%
Angel Oak is a mortgage real estate investment trust (REIT) focusing on first-lien non-qualified mortgages across the U.S. Angel Oak had a strong year in 2023, with the company purchasing over $220 million in new loans and reducing operating costs by 40%. The company’s residential loans portfolio experienced increased net operating income, enabling operating income growth. In February, the company declared and paid out a quarterly dividend per share of $0.32.
How We Selected the Best Dividend Stocks Under $25
We screened for dividend-paying stocks based on companies that are listed on the Nasdaq or the NYSE, trading at $25 per share or less, and that had positive total returns for the trailing 12-month period. We then ranked those firms by the highest forward dividend yield, which is calculated by dividing the annual dividend per share by the current share price.
However, there are risks to chasing high-dividend stocks. If companies have a dividend yield of 100% or more or a negative dividend yield—meaning negative net income—the company may be borrowing in order to pay dividends, which is generally unsustainable and unfavorable for investors. We excluded any such companies from our ranking.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.
As of the date this article was written, the author does not own any of the above stocks.