Income investors do not need to write big checks to build a meaningful dividend stream. With rates drifting and the market chasing AI names, three sub-$25 payers still offer usable yield backed by real cash flow. The basket below leans on midstream infrastructure and specialty finance, sectors where fee-based revenue and floating-rate lending keep distributions well covered in August.
One caveat up front: this list includes an MLP that issues a K-1 (Energy Transfer) and a business development company subject to the 90% distribution rule (Capital Southwest). Both structures carry unique tax and regulatory considerations that a straight C-corp dividend payer does not.
Energy Transfer (ET)
Energy Transfer (NYSE:ET | ET Price Prediction) is the anchor of any income-first basket under $25. The stock’s 50-day moving average of $19.59 sits inside a 52-week range of $15.35 to $20.70, keeping the unit price comfortably below the $25 threshold. The partnership carries a dividend yield of 6.6%, with a latest quarterly distribution of $0.34 and an annualized forward estimate of $1.36. The next payment lands August 19, 2026, with the ex-dividend date of August 7, 2026.
The bull case is straightforward. Q1 2026 revenue reached $27.77 billion, up 32.1% year over year, and adjusted EBITDA rose 20% to $4.94 billion, with distributable cash flow expanding to $2.70 billion from $2.31 billion. Management raised FY2026 Adjusted EBITDA guidance to $18.2 billion to $18.6 billion, a $750 million bump driven by NGL export strength and rising AI/data-center gas demand tied to hyperscale campus deals. Analysts remain constructive: the consensus target sits at $23.90, with 5 Strong Buy and 14 Buy ratings against only 2 Holds.
Risk: interest expense climbed to $947 million versus $809 million a year earlier, pressuring net income and highlighting leverage sensitivity. And again, ET issues a K-1, which complicates tax filing for retail investors holding units in taxable accounts.
Capital Southwest (CSWC)
Capital Southwest (NASDAQ:CSWC) delivers the highest headline yield of the three. As a business development company, CSWC is required to distribute at least 90% of taxable income, and it does so on a monthly cadence. Shares trade in the low $20s, with a 50-day moving average of $23.49 and a 52-week range of $17.63 to $24.41. The dividend yield reads 9.84%, supported by an annualized dividend of $2.321 and a trailing 12-month total of $2.5608 including supplementals.
The underlying credit book is what makes the payout durable. The portfolio is 99% first-lien senior secured with a weighted average debt yield of 10.81% and non-accruals of just 1.1% at fair value. FY2026 total investment income grew 13.5% to $232.1 million, and the portfolio expanded 17% to roughly $2.10 billion in fair value. The new CapTrin Partners joint venture with Trinity Capital closed a $150 million revolving credit facility with an accordion to $350 million, expanding origination firepower. Analyst target: $24.90.
Risk: the book is 95.5% floating-rate, so a Fed pivot cuts both ways. A 75 basis point rate cut would trim annual NII by roughly $11.4 million, or about $0.19 per share. Base-rate compression has already nudged weighted yields lower from the prior year.
Antero Midstream (AM)
Antero Midstream (NYSE:AM) rounds out the group as the growth-tilted midstream option. Shares sit below the $25 line, with a 50-day moving average of $22.02 and a 52-week range of $16.41 to $23.35. The dividend yield of 4.18% is the lightest of the three, but it is paired with the strongest volume-growth story. The $0.225 quarterly dividend has been stable since Q4 2021, and the next payment falls on August 12, 2026.
Q2 2026 gathering volumes hit a record 4.1 Bcf/d, up 19% year over year, with compression volumes up 17% and processing and fractionation running at 100% utilization. In late July, AM received a $371 million Clearwater/Veolia court award and used it, alongside its credit facility, to retire $650 million in 2028 senior notes. That leaves more than $600 million in liquidity and roughly $310 million left on the share repurchase program. The consensus target price is $24.14.
Risk: Q2 2026 EPS came in at $0.27 versus the $0.33 estimate, missing expectations on a 16% jump in interest expense to $55.68 million tied to HG Energy financing. Customer concentration with Antero Resources remains a structural consideration.
What To Watch In August
Three ex-dividend and payment dates all fall inside this month, making August an unusually clean entry window for income-focused readers. Keep an eye on the stocks around the Fed’s next signal: CSWC’s floating-rate book is the most rate-sensitive, ET’s fee-based cash flow the most insulated, and AM’s next catalyst is the East Side Express pipeline build supporting high-single-digit EBITDA growth in 2027.
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