While Most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the most significant public companies, especially the technology giants, trade at prices up to $1000 per share, while many are in the low to mid-hundreds. It’s hard to get decent share count leverage at those steep prices.
Many investors, especially more aggressive traders, look at lower-priced stocks to make good money and get a higher share count. That can help the decision-making process, especially when you are on to a winner, as you can always sell and keep half.
For low-price stock skeptics, many of the biggest companies in the world, including Apple, Amazon, NetFlix, and NVIDIA, all traded in the single digits at one time.
We screened our 24/7 Wall St. research database, looking for smaller-cap companies that could offer patient investors enormous returns for the rest of 2024 and beyond. Five companies that hit our screens also pay huge dividends, making the total return potential even more intriguing.
Why are we covering these stocks?
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For investors with a smaller capital base, low-price stocks that pay large dividends are an incredible way to not only generate passive income but to produce a big total returns. At 247 Wall St., we consistently emphasize the potential of total return to our readers, as it is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return is the collective increase in a stock’s value plus dividends.
AGNC Investment
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This company has paid solid monthly dividends since 2008, and its current yield is 15.14%. AGNC Investment Corp. (NASDAQ: AGNC) is a real estate investment trust (REIT) in the United States.
The company invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency.
The company funds its investments primarily through collateralized borrowings structured as repurchase agreements. It has elected to be taxed as a REIT under the Internal Revenue Code 1986. However, it would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.
Barings BDC
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This business development company is an industry leader and pays a massive 11.34% dividend. Barings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company elected to be treated as a business development company under the Investment Company Act 1940.
It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments, and senior secured private debt investments in private middle-market companies operating across various industries.
It specializes in :
- Mezzanine,
- Leveraged buyouts
- Management buyouts
- ESOPs
- Change of control transactions
- Acquisition financings
- Growth financing
- Recapitalizations in lower-middle market, mature, and later-stage companies
It invests in manufacturing and distribution, business services and technology, transportation and logistics, and consumer products and services. It invests in the United States. It invests in companies with EBITDA of $10 million to $75 million, typically in private equity sponsor-backed.
BrightSpire Capital
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Paying a massive 13.09% dividend, this company could be a total return home run. BrightSpire Capital, Inc. (NYSE: BRSP) operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe.
The company operates through:
- Senior and Mezzanine Loans and Preferred Equity
- Net Leased and Other Real Estate
- Corporate and Other segments
It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments, including first mortgage loans, senior loans, debt securities, mezzanine loans, preferred equity investments, and net leased properties.
For federal income tax purposes, the company qualifies as a real estate investment trust. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.
The Cato Corporation
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Paying shareholders a gigantic 14.68% dividend, this company, founded in 1946, could attract value buyers at current trading levels. The Cato Corporation (NYSE: CATO) and its subsidiaries operate as a specialty fashion apparel and accessories retailer in the southeastern United States.
It operates through two segments:
- Retail
- Credit.
The company’s stores and e-commerce websites offer a range of apparel and accessories, including:
- Dressy, career, and casual sportswear
- Dresses
- Coats
- Shoes
- Lingerie
- Costume jewelry
- Handbags
- Men’s wear
- Lines for kids and infants
It operates its stores and e-commerce websites under these names:
- Cato
- Cato Fashions
- Cato Plus
- It’s Fashion
- Fashion Metro
- Versona names
It also provides credit card services and layaway plans for its customers.
Kennedy-Wilson Holdings
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Investors looking here and overseas will have interest in this company that pays a rich 10.81% dividend. Kennedy-Wilson Holdings, Inc. (NYSE: KW) together with its subsidiaries, operates as a real estate investment company.
The company’s involvement in the development, redevelopment, and entitlement of real estate properties is a key factor in its growth potential. It owns, operates, and invests in real estate both on its own and through its investment management platform.
Kennedy-Wilson Holdings focuses on multifamily and office properties in:
- The Western United States
- The United Kingdom
- Ireland,
- Spain
- Italy
- Japan
The company’s holdings include multifamily units, office space, retail and industrial space, and a hotel.
Kennedy Wilson recently announced that they have partnered with Haseko Corporation to acquire The Farmstead and Villas at 28th Street communities in Vancouver, Washington. The portfolio totals 350 multifamily units and was acquired for $90 million.
The two newly constructed, amenity-rich communities build on Kennedy Wilson’s significant multifamily presence in the Pacific Northwest, which is currently approaching 13,000 market-rate and affordable apartment units.
Uniti Group
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Way off the radar, this specialty company delivers a massive 10.68% dividend. Uniti Group, Inc. (NASDAQ: UNIT) is an internally managed real estate investment trust engaged in the acquisition and construction of mission-critical communications infrastructure and is a leading provider of fiber and other wireless solutions for the communications industry.
As of December 31, 2023, Uniti owns approximately 140,000 fiber route miles, 8.5 million fiber strand miles, and other communications real estate throughout the United States.
Uniti is not resting on its laurels. The company recently announced a significant network expansion in Huntsville, Alabama, one of its existing 30 enterprise markets. This expansion, spanning approximately 70 route miles, is not just a move to increase its footprint. It’s a strategic decision to support one of its hyperscale customers, demonstrating Uniti’s forward-thinking approach and potential for future success.
Uniti provides multiple conduits and high-strand count fiber to its hyper-scale customer to connect key data center locations within the Huntsville metropolitan area and tie in diverse, long-haul routes connecting Huntsville to other regional and national data center markets.
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