The Moneymaxxing Crowd Will Love 5 High-Yield Dividend Stocks Under $20

The moneymaxxing trend among Millennials, and especially Gen Z, is positive and can make older Americans proud. The effort to snatch bargains, move money to the highest-yielding markets, switch credit cards for a year of 0% interest, look for coupons and online specials, and more is a big plus. Gen Z took these same core financial principles and gave them a fresh, internet-native label by adding the trendy “maxxing” suffix, turning saving and budgeting into “moneymaxxing.” Now, both Millennials and Gen Z use the term to describe squeezing maximum value out of every dollar.

This is a direct response to inflation, rising living costs, and the increasingly distant prospect of financial independence. While most older Americans, especially Gen X and Boomers, have known about and applied moneymaxxing principles forever, it’s refreshing to see the 25- to 40-year-old crowd applying them to their finances. They see a difficult financial landscape ahead, as they realize the country is $40 trillion in debt, and getting ahead of the problem now is vital.

We figured we would dig into our 24/7 Wall St. high-yield dividend stocks database and screen for quality dividend stocks trading under $20. The logic is that if you are a younger investor with fewer funds to invest, you can buy more shares of a stock trading under $20. If you are looking to generate passive income, this is a smart way to get a leg up. We found five that make sense now, and all pay solid and reliable dividends.

AES

AES (NYSE: AES | AES Price Prediction) is an energy company that has a rich 4.76% dividend and operates in four segments:

• Renewables
• Utilities
• Energy Infrastructure
• New Energy Technologies

The Renewables segment includes solar, wind, energy storage, and hydro generation facilities. The Utilities segment includes AES Indiana, AES Ohio, and AES El Salvador regulated utilities and their generation facilities. The Energy Infrastructure segment includes natural gas, liquefied natural gas (LNG), coal, pet coke, diesel, and oil generation facilities. Its businesses in Chile have a mix of generation sources, including renewables.

The New Energy Technologies segment includes investments in Fluence, Uplight, Maximo, and other initiatives. It has two lines of business: Generation, which owns and/or operates power plants to generate and sell power to customers, and Utilities, which owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers.

Ford

This American automotive corporation was founded in 1903 by Henry Ford and 11 associate investors. This legacy carmaker pays shareholders a dependable 4.16% dividend. Ford (NYSE: F) develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide.

It operates through five segments:

• Ford Blue
• Ford Model e
• Ford Pro
• Ford Next
• Ford Credit

The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors, dealers, and dealerships to commercial fleet customers, daily rental car companies, and governments. It also engages in vehicle-related financing and leasing activities through automotive dealers. In addition, the company:

• Provides retail installment sale contracts for new and used vehicles
• Directly finances leases for new cars to retail and commercial customers, including leasing companies, government entities, daily rental companies, and fleet customers

It also offers wholesale loans to dealers to finance vehicle inventory purchases, as well as loans to fund working capital, improve dealership facilities, buy dealership real estate, and support other dealer vehicle programs.

Barclays has an Overweight rating with a $14 price target.

Global Water Resources

With a product everyone needs and a solid 3.40% dividend, this off-the-radar idea makes sense. Global Water Resources (NASDAQ: GWRS) is a water resource management company that owns and operates 39 systems providing water, wastewater, and recycled water services. The company’s service areas are located primarily in growth corridors around metropolitan Phoenix and Tucson.

The company plans to deploy an integrated approach called Total Water Management (TWM). TWM is a comprehensive approach to water utility management that reduces demand on scarce non-renewable water sources and costly renewable water supplies. This ensures sustainability and benefits communities environmentally and economically.

TWM also implements smart water management programs, including advanced and remote metering infrastructure. It recycles over one billion gallons of water annually. It enables smart water management programs such as remote metering infrastructure and other advanced technologies, rate designs, and incentives that result in real conservation.

Kenvue

After Kenvue (NYSE: KVUE) spun off from Johnson & Johnson (NYSE: JNJ) in August 2023, it is now set to be acquired by Kimberly-Clark (NYSE: KMB). Kenvue pays a reliable 4.38% dividend and is a consumer health company. The company’s differentiated brand portfolio includes Aveeno, BAND-AID Brand, Johnson’s, Listerine, Neutrogena, Nicorette, Tylenol, and Zyrtec.

It operates through three segments:

• Self Care
• Skin Health and Beauty
• Essential Health

The Self Care product categories include pain care; cough, cold, and allergy; digestive health; smoking cessation; eye care; and other products. It includes brands such as Tylenol, Motrin, Nicorette, Benadryl, Zyrtec, Zarbee’s, Rhinocort, and Calpol. The Skin Health and Beauty segment is focused on face and body care, as well as hair, sun, and other products.

The Essential Health segment includes oral care, baby care, women’s health, wound care, and other products. Its portfolio includes Self Care, Skin Health and Beauty, and Essential Health products, which connect with consumers across North and Latin America, Europe, Asia Pacific, and elsewhere.

Shareholders will receive $3.50 in cash plus 0.14625 shares of Kimberly-Clark for each share of Kenvue. The mixed cash-and-stock acquisition values Kenvue at approximately $48.7 billion. Based on the initial announcement terms, the total implied value was roughly $21.01 per share, though the current value fluctuates with Kimberly-Clark’s share price. The transaction is expected to close in the second half of 2026, and shareholders would get a premium to the current price.

Starwood Property Trust

This off-the-radar global real estate giant boasts a 12.10% dividend yield and is led by real estate legend Barry Sternlicht. Starwood Property Trust (NYSE: STWD) operates as a real estate investment trust (REIT) in the United States, Europe, and Australia. It is the largest commercial mortgage REIT in the U.S. and has not lowered its dividend once since its inception in 2009. It has navigated the current high-interest-rate real estate environment by shifting heavily into infrastructure lending and triple-net lease properties.

The company operates through four segments:

• Commercial and Residential Lending
• Infrastructure Lending
• Property
• Investing and Servicing

The Commercial and Residential Lending segment originates, acquires, finances, and manages:

• Commercial first mortgages
• Non-agency residential mortgages
• Subordinated mortgages
• Mezzanine loans
• Preferred equity
• Commercial mortgage-backed securities (CMBS)
• Residential mortgage-backed securities

The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments. The Property segment primarily develops and manages equity interests in stabilized commercial real estate properties. These include multifamily and net-leased commercial properties held for investment purposes.

The Investing and Servicing segment:

• Manages and works out problem assets
• Acquires and manages unrated, investment-grade, and non-investment-grade rated CMBS comprising subordinated interests in securitization and re-securitization transactions
• Originates conduit loans to sell these loans into securitization transactions and acquire commercial real estate assets, including properties from CMBS trusts

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