Chinese fintech platform Jiayin Group took the lead for April 2024 among dividend-paying stocks
under $25 with the highest forward dividend yield and positive total returns in the past year. Jiayin shareholders were rewarded with a 75% return over the past year while collecting a handsome dividend currently yielding 11.7% on a forward basis.
Investors oftenpick dividend stocksas a relatively stable source ofpassive incomeduring periods of market volatility or during abear market. Below, we explore the top fivedividend stocksunder $25 for April 2024, as measured byforward 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 April 9, 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 five stocks on the NYSE or Nasdaq with the highest forward dividend yield that also trade for $25 or less as of April 2024 include Jiayin Group Inc., Petroleo Brasileiro, Frontline Plc, Hercules Capital, and Apollo Commercial Real Estate Finance, Inc.
Jiayin Group Inc. (JFIN)
- Forward Dividend Yield: 11.6%
- Sector/Industry: Finance/Rental/Leasing
- Price: $6.70
- Market Cap: $352 million
- 1-Year Total Return: 74.5%
Founded in 2011, Jiayin Group Inc. aims to bridge the gap between underserved borrowers
and financial institutions through a secure and efficient service that leverages big data analytics and algorithms within its comprehensive risk management system. For its 2023 fiscal year, Jiayin reported a 58.7% increase in loan facilitation volume and a 67.1% rise in net revenue, showcasing significant year-over-year growth. Alongside its strong profile and healthy dividend, Jaiyin announced a share buyback plan worth $30 million, signaling management’s belief that the stock is currently undervalued.
Petroleo Brasileiro SA (PBR)
- Forward Dividend Yield: 19.7%
- Sector/Industry: Energy minerals / Integrated oil
- Price: $15.64
- Market Cap: $99 billion
- 1-Year Total Return: 43%
Based in Brazil, Petrobras is one of the largest oil and gas producers in the world, with an estimated 10.9 billion barrels of oil equivalent as of Dec. 31, 2023. Known for its shareholder returns, Petrobras is committed to a minimum of $4 billion in buybacks and dividends each year, as long as the price of Brent oil is higher than $40 per barrel.
Frontline PLC (FRO)
- Forward Dividend Yield: 9.2%
- Sector/Industry: Transportation/ Marine shipping
- Price: $23.49
- Market Cap: $5.2 billion
- 1-Year Total Return: 57%
Originally founded in 1985 in Sweden, Frontline is currently the world’s largest tanker company. The company’s share price has benefitted from strong tanker prices, with daily rates for fiscal year 2023 more than doubling from 2022 levels, leading the company to its strongest results in 15 years. In January and February 2024, the company finalized the sale of six of its oldest, non-ecofriendly ships, and refinanced 24 vessels, expected to generate net cash proceeds of about $646 million.
Hercules Capital, Inc. (HTGC)
- Forward Dividend Yield: 10.4%
- Sector/Industry: Finance/Investment Managers
- Price: $18.40
- Market Cap: $2.9 billion
- 1-Year Total Return: 48.6%
Hercules is a finance firm, offering venture growth loans to rapidly expanding innovative companies across the technology and life sciences sectors. Hercules has committed around $19 billion to over 640 ventures. Despite macroeconomic headwinds, Hercules delivered record gross financings of $1.6 billion for 2023. The company achieved record total investment income and record net investment income for 2023, growing 43% and 62% year-over-year, respectively. The strong financial performance led the company's board of directors to declare a supplemental dividend of $0.32 per share over four quarters.
Apollo Commercial Real Estate Finance (ARI)
- Forward Dividend Yield: 12.8%
- Sector/Industry: Finance/ Real Estate Investment Trusts
- Price: $11.04
- Market Cap: $1.57 billion
- 1-Year Total Return: 24%
Apollo Commercial Real Estate Finance is a real estate investment trust (REIT) specializing in financing commercial properties across the U.S. and Europe, offering customized capital solutions through senior mortgages, mezzanine loans, and other debt investments. As of Dec. 31, 2023, the company's diversified loan portfolio is worth $8.4 billion. The company has a conservative portfolio loan-to-value ratio of 57% as of February 2024.
How We Selected the Best Dividend Stocks Under $25
Wescreenedfor 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 arerisksto 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.
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As of the date this article was written, the author does not own any of the above stocks.
