10 High Dividend Stocks Under $20
By: Jonathan Wolfgram,
Investors looking for high dividend stocks with lofty yields often find equities with substantial income distributions that are greatly outside of investors’ target price range.
However, income investors can reach for equities that provide similar levels of dividend yield at significantly more affordable prices. As all investors know, above-average dividend yields are nothing more than a good starting point for additional analysis. In addition to high yields, dividend stocks must meet additional performance criteria to warrant consideration to become portfolio-worthy choices.
Instead of doing their own research, investors could take a shortcut and invest in high dividend stock exchange-traded funds (ETFs) or pick their investments from indices that track equities with reliable records of strong and rising income distributions. For example, Dividend Aristocrats or the Dividend Kings offer long track records of paying rising dividends.
Dividend Aristocrats compose an exclusive group of S&P 500 companies that have raised their annual dividend for at least 25 consecutive years and have a minimum market capitalization of $3 billion. Dividend Kings feature S&P 500 companies that must have a market capitalization of more than $3 billion and a record of raising annual dividend payouts for at least 50 consecutive years.
However, investors who prefer to conduct their own research and customize their requirements can perform their own analysis. Online screening tools — like the Dividend Screener available at DividendInvestor.com — offer a wide array of filters for honing in on the equities that meet an investor’s specific needs.
In addition to above-average yields, the 10 dividend stocks on the list below meet additional requirements to ensure high probability of strong returns for the near term. Since the dividend yield is a simple ratio of the total annual dividend divided by the current share price, a yield increase might be a misleading metric. A sudden share price drop will increase the dividend yield. This sudden dividend yield enhancement might look enticing. However, losses from a falling share price will almost always outweigh gains from rising dividend distributions to deliver overall total losses.
Therefore, instead of choosing equities based solely on high yields, all equities on the list below meet additional criteria. In addition to a yield of at least 7%, all equities have a market capitalization of at least $1 billion and have delivered a positive total return for the past 12 months. Also, the share prices of all equities on this list closed on December 12, 2021, at no more than $20 per share.
| Company | Ticker | Sector | Consecutive Annual Dividend Hikes | Market Cap | Latest Close Price | Projected 12 Month Dividend Yield | Trailing 12 Month Dividend Yield |
|---|---|---|---|---|---|---|---|
| Petrobras Brasileiro | PBR | Energy | 0 | $59.13B | $13.61 | 5.51% | 17.05% |
| Golden Ocean Group | GOGL | Industrials | 0 | $1.31B | $9.11 | 13.17% | 13.17% |
| Hercules Capital | HTGC | Financials | 0 | $3.15B | $19.41 | 8.24% | 9.89% |
| Gerdau | GGB | Materials | 0 | $4.20B | $3.26 | 5.83% | 4.39% |
| Energy Transfer | ET | Energy | 2 | $65.19B | $19.04 | 6.78% | 6.70% |
| New York Mortgage Trust | NYMT | Financials | 0 | $589.67M | $6.51 | 12.29% | 12.29% |
| United Breweries Co | CCU | Consumer Products | 0 | $1.88B | $11.78 | 2.12% | 2.16% |
| Telefonica | TEF | IT & Communications | 1 | $22.34B | $4.42 | 7.24% | 7.35% |
| Prospect Capital | PSEC | Financials | 0 | $1.96B | $4.50 | 12.00% | 15.67% |
| Oaktree Specialty Lending | OCSL | Financials | 0 | $1.32B | $16.04 | 13.72% | 14.15% |
For investors who seek high dividend stocks under $20, this list of 10 such companies could be highly useful. However, income investors might reach for equities that provide similar levels of return at even more affordable prices.
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