Top 4 Affordable High-Yield Dividend Stocks Under $25 for February 2025

Explore the top 4 budget-friendly dividend stocks for February 2024, each offering attractive yields and solid returns.

Leading the pack is Greek shipping giant Star Bulk Carriers Corp. (SBLK), boasting a remarkable forward dividend yield of 33.8% and positive total returns over the past year, all while trading below $25. Its shares have gained 0.7%, making it a standout choice for income-focused investors.

Dividend stocks remain a favored option for those seeking dependable passive income, especially during market uncertainty or downturns. Below, we highlight four dividend-paying stocks under $25 listed on the NYSE or Nasdaq, each with positive one-year total returns and forward dividend yields that stand out as of February 9, 2024. Companies with payout ratios above 100% or negative payouts were excluded to ensure sustainability.

Key Insights

• Dividend stocks distribute a portion of earnings to shareholders, providing steady income streams.
• Dividend yield, expressed as a percentage, compares annual dividends to the stock price, fluctuating with market movements.
• Our top four picks under $25 with the highest forward yields include Star Bulk Carriers, Trinity Capital, Natural Health Trends, and Seven Hills Realty Trust.

Star Bulk Carriers Corp. (SBLK)

• Forward Dividend Yield: 33.8%
• Industry: Transportation
• Stock Price: $22.94
• Market Cap: $2.2 billion
• 1-Year Total Return: 0.7%

Star Bulk is a prominent Greek shipping company specializing in transporting minerals, grain, fertilizer, and steel. In December 2023, it announced a strategic all-stock merger with Eagle Bulk Shipping Inc., expected to finalize in the first half of 2024.

The latest dividend payment was $0.22 per share on December 18, 2023.

Trinity Capital Inc. (TRIN)

• Forward Dividend Yield: 15.8%
• Industry: Finance
• Stock Price: $13.97
• Market Cap: $609.5 million
• 1-Year Total Return: 4.3%

Trinity Capital operates as a business development company, providing loans and financial services to growth-stage firms backed by institutional investors. In 2023, it originated approximately $831 million in new commitments, including secured loans and equity investments.

The company aims to distribute 90% to 100% of its taxable income through quarterly dividends, with the most recent $0.50 per share paid on January 12, 2024.

Natural Health Trends Corp. (NHTC)

• Forward Dividend Yield: 13.7%
• Industry: Consumer Discretionary
• Stock Price: $6.16
• Market Cap: $70.9 million
• 1-Year Total Return: 25.2%

Natural Health Trends is a direct-selling and e-commerce company offering personal care products globally under the NHT Global brand. Despite a 13% revenue decline in Q4 2023, the company reported reduced operating losses and an uptick in orders.

A dividend of $0.20 per share is scheduled for payment on March 4, 2024.

Seven Hills Realty Trust (SEVN)

• Forward Dividend Yield: 12.1%
• Industry: Finance / REIT
• Stock Price: $12.14
• Market Cap: $179.8 million
• 1-Year Total Return: 11.4%

Seven Hills Realty Trust is a REIT focusing on originating and investing in mortgage loans secured by middle-market and commercial real estate. The company declared a $0.35 per share dividend on January 11, 2024, with an expected payment date of February 15, 2024.

Selection Criteria for Top Dividend Stocks Under $25

Our selection process involved screening dividend-paying stocks listed on the NYSE or Nasdaq, priced at $25 or less, and exhibiting positive total returns over the last 12 months. We prioritized companies with the highest forward dividend yields, calculated by dividing annual dividends by current share prices.

We excluded companies with unsustainable dividend practices, such as payout ratios exceeding 100% or negative earnings, to ensure quality and reliability.

Disclaimer: This content is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.

As of publication, the author holds no positions in the mentioned stocks.

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