Here are 3 dividend-paying stocks that are under $5. Full disclosure, I don’t personally own any of these stocks, nor am I a financial advisor. You need to do your own due diligence before investing in these or in any positions.
Most of the stocks that I own pay a dividend. I am currently reinvesting all the payouts to buy more shares. When I retire the dividend payments will be a source of income. What follows are 3 companies with share prices under $5 that pay a dividend. These companies should be stable, and their dividends should be safe looking forward. Be cautious of companies that have seen recent drops in their share prices. This will make their dividend yields appear to be high. You could be tempted to buy these companies only to have the companies cut their dividends a short time later.
Amber SA (ABEV)
ABEV is the largest brewer in South America and is primarily owned by Anheuser Busch. Their revenue has climbed in recent quarters after struggling during the pandemic. As of this writing, the share price on this stock is $2.92 a share and is yielding just over 4%.
Diversified Healthcare Trust (DHC)
DHC is a REIT specializing in healthcare properties. While they haven’t raised their dividend in recent years like some of their peers, they have been a steady payer. Their current share price is $1.04 and yields 3.85%.
Nordic American Tankers Limited (NAT)
Nordic American Tankers is a Bermuda-based company with a fleet of 22 vessels. This company has paid out a dividend steadily for the past 100 quarters and recently hiked its dividend by 50%. The current share price is $3.50 and yields 3.43%.
These were 3 dividend-paying stocks that are under $5. There are seemingly endless more of these companies to choose from. Just be sure to do your research before investing. I’ve always liked dividends as a passive income source. Building a portfolio of quality dividend names can produce a nice source of income either now or in retirement.
Dividend Stock Purchase – An Example
Writer and Investor. Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.