In this article, we will take a look at some of the best low priced stocks that pay dividends.
Concerns over an escalating trade war and rising geopolitical tensions have triggered waves of selling in stock markets over the past week. The United States has been at the center of these developments, as President Donald Trump intensified his rhetoric on trade tariffs, which are expected to raise costs for both consumers and businesses domestically and abroad.
Since reaching a peak in mid-February, the broader market—an index tracking America’s largest companies—has declined by 7.3% as of March 17 and is down 3% for 2025. Meanwhile, the Nasdaq, which focuses on technology stocks, has fallen 7.2% this year. As a result, the US market has now dropped below its levels prior to the so-called “Trump bump” in November, when Trump’s election victory initially drove markets higher.
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The year 2025 has been marked by significant events, ranging from corporate earnings and guidance updates to concerns surrounding DeepSeek and the fluctuating stance on tariffs by President Donald Trump. These developments have contributed to heightened market volatility, creating uncertainty for investors. A report by Morningstar suggested that investors should prioritize fundamental analysis, adopt a long-term perspective, and remain mindful of valuations. In line with this approach, the firm’s analysts continue to assess the long-term fundamentals shaping sector outlooks and evaluate the key assumptions driving valuation models. Given the ongoing uncertainty surrounding the potential implementation of tariffs, adjustments to projections and valuations will be made once there is greater clarity on the extent of the tariffs and their expected duration.
Dividend stocks have gained popularity during market downturns, as they offer shareholders a steady source of income. Following a period where growth stocks dominated, interest in dividend investing has been on the rise. According to a report by Franklin Templeton, US-listed dividend-focused exchange-traded funds (ETFs) saw a significant increase in investor interest, with average monthly net inflows reaching nearly $3.3 billion in the six months leading up to January 31, 2025. This marks a sharp contrast to the $107 million recorded during the same period the previous year.
Amid an uncertain global economic environment, investors are gravitating toward more stable assets to create balanced portfolios. Dividend stocks, particularly those backed by strong fundamentals, are known for generating consistent and predictable cash flows. Since these cash flows play a crucial role in equity valuation models, determining the intrinsic or fair value of dividend-paying stocks is generally more straightforward than valuing growth stocks.
The Dividend Aristocrat Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has surged by over 3% in 2025, so far, compared with a nearly 3% decline of the broader market, as of the close of March 17.
Given this, we will take a look at some of the best low priced stocks that pay dividends.
Photo by Karolina Grabowska from Pexels
Our Methodology
For this list, we screened for dividend stocks with forward P/E ratios of less than 21 and share prices below $50, as of March 17. From the group, we picked 15 companies for their robust financial health, consistent dividend track records, and stable balance sheets, making them attractive options for income-focused investors. The stocks are ranked according to their share prices, as of the close of March 17.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. General Motors Company (NYSE:GM)
Share Price as of the Close of March 17: $49
Forward P/E Ratio as of March 17: 4.20
General Motors Company (NYSE:GM) is a Michigan-based multinational automotive company that sells trucks, cars, and auto parts, and offers software-based services and subscriptions. Analysts maintain a positive outlook on the company, as the automaker reported a gain in equity income for the fourth quarter in China, excluding restructuring costs. This marks a significant achievement in an intensely competitive market, where a fierce price war and the rapid expansion of domestic brands have put pressure on international automakers.
A key factor driving interest in General Motors Company (NYSE:GM) is its substantial share buyback program, which returns value to investors while the stock continues to trade at a low price-to-earnings ratio. Notably, this new repurchase authorization was announced despite the prospect of looming tariffs, signaling the company’s confidence in its ability to navigate potential challenges—a reassuring sign for some investors.
In the fourth quarter of 2024, General Motors Company (NYSE:GM) reported revenue of $47.7 billion, reflecting an 11% increase compared to the previous year. However, net income dropped by over $5 billion, primarily due to one-time charges. These included $4 billion in non-cash restructuring costs and write-downs related to specific joint ventures in China. The company also recorded $0.5 billion in expenses after deciding to halt funding for its Cruise robotaxi business.
On February 26, General Motors Company (NYSE:GM) announced a 25% increase in its quarterly dividend, bringing it to $0.15 per share. The company has maintained regular dividend payments since 2014, backed by its solid cash flow. In fiscal year 2024, GM reported $24 billion in both operating cash flow and free cash flow. The stock has a dividend yield of 0.98%, as of March 17.
14. Archer-Daniels-Midland Company (NYSE:ADM)
Share Price as of the Close of March 17: $48.05
Forward P/E Ratio as of March 17: 9.56
Archer-Daniels-Midland Company (NYSE:ADM) is an American food processing and commodities trading company. The company is implementing a strategic plan to boost profitability, aiming to achieve $200–$300 million in cost savings over the next few years through improved operational efficiencies and workforce reductions. These measures are designed to enhance margins and strengthen the company’s financial stability amid economic uncertainties. In addition, ADM is integrating AI, data analytics, and SAP S/4HANA to optimize its supply chain, refine demand forecasting, and improve pricing strategies, helping it maintain a competitive advantage.
A key growth driver for ADM is its expansion into plant-based and nutritional products within the Nutrition segment, a high-margin business that reduces reliance on the volatile commodity market. This strategic transition positions the company for sustained long-term growth while ensuring steady cash flow generation.
However, Archer-Daniels-Midland Company (NYSE:ADM) fell short of investor expectations in the fourth quarter of 2024. As a commodity-driven business, its performance remains highly dependent on market prices, leading to fluctuations beyond its control. Given the industry’s nature, the company operates with narrow gross margins, which contributed to a 22% decline in gross profit to $1.36 billion. Its gross margin also fell from 7.6% to 6.3%. Despite these challenges, revenue reached $21.5 billion, marking a 6.4% increase from the same period the previous year. GAAP earnings per share stood at $1.17, reflecting a 10% year-over-year increase.
Archer-Daniels-Midland Company’s (NYSE:ADM) cash position offered some reassurance to investors. By the end of 2024, the company held $611 million in cash and cash equivalents. Over the year, it generated $2.8 billion in operating cash flow, with operating cash flow before working capital adjustments totaling $3.3 billion. On February 4, ADM announced a 2% increase in its quarterly dividend to $0.51 per share, marking its 52nd consecutive year of dividend growth. With an uninterrupted dividend history spanning 93 years, ADM is one of the best low-priced stocks that pay dividends. As of March 17, the stock has a dividend yield of 4.25%.
13. California Water Service Group (NYSE:CWT)
Share Price as of the Close of March 17: $47.27
Forward P/E Ratio as of March 17: 19.58
California Water Service Group (NYSE:CWT) is an American public utility company that offers drinking water and wastewater services. In the fourth quarter of 2024, the company posted revenue of over $222 million, which showed a 4% growth from the same period last year. Higher rates contributed an additional $24.2 million in revenue. A significant development during the period was the filing of the 2024 California General Rate Case (GRC), which outlines investments aimed at ensuring a safe and sustainable water supply for customers.
Operating expenses for the fourth quarter of 2024 reached $189.9 million, reflecting a $10.6 million increase from $179.3 million in the same quarter of the previous year. Water production costs rose by $3.4 million to $73.7 million, primarily driven by higher wholesale rates and increased consumption.
California Water Service Group (NYSE:CWT) is a solid dividend payer with a strong cash position. On January 29, the company declared a 7.1% hike to its quarterly dividend at $0.30 per share. This marked the company’s 58th consecutive year of dividend growth. The stock has a dividend yield of 2.53%, as of March 17.
12. Enbridge Inc. (NYSE:ENB)
Share Price as of the Close of March 17: $43.47
Forward P/E Ratio as of March 17: 20.33
Enbridge Inc. (NYSE:ENB) is a Canadian multinational pipeline and energy company. The company reported adjusted earnings of $6.04 billion in 2024, an increase from $5.74 billion the previous year. It also completed a $14 billion acquisition of three US-based natural gas utilities, strengthening its market presence and creating new growth opportunities for 2025 and beyond. With this acquisition, Enbridge has become the largest natural gas utility operator in North America. Its transmission network now delivers approximately 20% of the natural gas consumed in the US, positioning the company to benefit from growing demand, particularly as tech firms invest in gas-powered facilities to meet the electricity needs of AI-driven data centers.
In the past 12 months, Enbridge Inc. (NYSE:ENB) has surged by nearly 22.5%. The company maintains a strong level of reliability, as its revenue primarily comes from fees charged for access to its essential infrastructure. Unlike commodity prices, which can experience significant fluctuations, the company’s financial performance is more closely tied to the demand for oil and natural gas—markets that generally remain stable even when prices decline. Enbridge’s midstream operations account for approximately 75% of its earnings before interest, taxes, depreciation, and amortization (EBITDA).
Enbridge Inc. (NYSE:ENB) maintained a healthy cash position throughout the year, generating $12.6 billion in operating cash flow, compared to $14.2 billion in 2023. Its distributable cash flow (DCF) increased by 6% year-over-year, reaching $12.0 billion, up from $11.3 billion the previous year. It offers a quarterly dividend of C$0.9425 per share, with a dividend yield of 6.11%, as recorded on March 17. The company has been rewarding shareholders with growing dividends for the past 30 years. With a share price of $43.47, ENB is one of the best low-priced stocks that pay dividends.
11. Bank of America Corporation (NYSE:BAC)
Share Price as of the Close of March 17: $41.65
Forward P/E Ratio as of March 17: 11.05
Bank of America Corporation (NYSE:BAC) is a North Carolina-based financial services company. As of March 17, the stock closed at $41.65 per share, which makes it one of the best low-priced stocks that pay dividends. The company has consistently maintained profitability, a trait that remains a significant strength. Over the past five years, the bank has achieved an average net profit margin of 27.9%, highlighting its ability to generate positive earnings in various economic conditions. In the fourth quarter of 2024, net income more than doubled to $6.7 billion, rising from $3.1 billion in the same period the previous year. The bank also expanded its customer base, adding 213,000 new consumer checking accounts, marking six consecutive years of quarterly growth. In addition, it returned $2 billion to shareholders through dividend payments.
Operating across multiple segments—including consumer and commercial banking, capital markets and investment banking, and wealth management—Bank of America Corporation (NYSE:BAC) has demonstrated long-term resilience with a history spanning over a century. Its scale remains a key competitive advantage, generating $102 billion in revenue in 2024 and closing the year with $3.3 trillion in assets. This extensive reach enables the bank to manage operating costs more efficiently than smaller competitors while maximizing the impact of its marketing and digital initiatives. In the past 12 months, the stock has surged by over 15%.
Bank of America Corporation (NYSE:BAC) has been paying regular dividends to shareholders for the past 27 years and also maintains an 11-year streak of dividend growth. The company’s quarterly dividend comes in at $0.26 per share and has a dividend yield of 2.51%, as of March 17.
10. Dow Inc. (NYSE:DOW)
Share Price as of the Close of March 17: $37.54
Forward P/E Ratio as of March 17: 18.48
Dow Inc. (NYSE:DOW) is a Michigan-based multinational chemicals company. It ranks tenth on our list of the best low priced stock. The company specializes in materials science, with operations spanning the production and distribution of chemicals, plastics, and agricultural products. It is organized into three primary segments: packaging and specialty plastics, industrial intermediates and infrastructure, and performance materials and coatings. Like other businesses in commodity-driven industries such as oil, gas, and gold mining, Dow does not control the market prices of raw materials. Instead, its strategy centers on cost management and enhancing production efficiency to maintain its competitive edge.
In its fourth-quarter 2024 earnings report, Dow Inc. (NYSE:DOW) posted revenue of $10.4 billion, reflecting a 2% decline from the previous year. Despite broader economic headwinds, Dow achieved a 1% increase in sales volume, marking its fifth consecutive quarter of year-over-year volume growth. This momentum was fueled by robust demand for high-value applications and the company’s cost-efficient operations across different regions. In addition, in December, Dow completed an agreement to sell a minority stake in select US Gulf Coast infrastructure assets, a transaction expected to generate approximately $3 billion in cash proceeds.
Dow Inc. (NYSE:DOW) has also established itself as a reliable dividend stock with a strong financial position. In the most recent quarter, the company generated $811 million in operating cash flow and returned $492 million to shareholders through dividend payments. With a history of consistent dividend distributions dating back to 1912, Dow remains a solid choice for income-focused investors. Currently, it offers a quarterly dividend of $0.70 per share and has a dividend yield of 7.46%, as recorded on March 17.
9. Comcast Corporation (NASDAQ:CMCSA)
Share Price as of the Close of March 17: $35.84
Forward P/E Ratio as of March 17: 8.35
Comcast Corporation (NASDAQ:CMCSA) is an American multinational mass media company that offers a wide range of mobile phone and cable TV services. The company operates through multiple divisions, including Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks. On March 11, the company announced a complimentary internet speed upgrade for over 20 million Xfinity customers, increasing upload speeds by 50% to 100%. This enhancement aims to improve file sharing, remote work, and video uploads on social media platforms.
In the fourth quarter of 2024, Comcast Corporation (NASDAQ:CMCSA) generated nearly $32 billion in revenue, reflecting a 2.1% increase from the previous year. Growth was driven by strong performance across its six core business segments. Connectivity revenue rose by 5%, while mobile services expanded with the addition of 1.2 million new lines. Business Services also posted a 5% revenue increase despite a highly competitive market.
Comcast Corporation (NASDAQ:CMCSA) offers a quarterly dividend of $0.33 per share and has a dividend yield of 3.69%, as recorded on March 17. The company maintained a solid cash position, with operating cash flow surpassing $8 billion, up from $6 billion the year before. Free cash flow more than doubled, reaching $3.26 billion compared to $1.7 billion in the prior year. In addition, it distributed $1.2 billion to shareholders through dividends. With 17 consecutive years of dividend growth, CMCSA is one of the best low priced stocks that pay dividends.
8. Ally Financial Inc. (NYSE:ALLY)
Share Price as of the Close of March 17: $34.53
Forward P/E Ratio as of March 17: 8.52
Ally Financial Inc. (NYSE:ALLY) is an American bank holding company that primarily focuses on auto lending. Originally part of General Motors, it became an independent entity following the financial crisis. Now operating as an online-based bank, it manages $143 billion in retail deposits and offers an investment platform, among other financial services. It is the largest independent auto lender in the United States, meaning it operates separately from automakers like Toyota Financial Services. In 2024, the company issued $39.2 billion in auto loans, with an average yield of 10.4%. In addition, it has a significant insurance division, generating nearly $1.5 billion in auto insurance premiums over the year.
Ally Financial Inc. (NYSE:ALLY) has recently chosen to streamline its operations by exiting certain non-core business segments to concentrate on its primary areas of focus. As part of this strategy, the company sold its credit card business and discontinued new mortgage loan applications after January. Moreover, it anticipates saving over $60 million annually through recent efficiency enhancements.
Ally Financial Inc. (NYSE:ALLY)’s cash position remained strong at the end of Q4 2024. The company ended the quarter with $9.4 billion available in cash and cash equivalents, up $1.6 billion QoQ. Currently, it offers a quarterly dividend of $0.30 per share and has a dividend yield of 3.48%, as of March 17. The company has never missed a dividend since 2016.
7. Enterprise Products Partners L.P. (NYSE:EPD)
Share Price as of the Close of March 17: $33.89
Forward P/E Ratio as of March 17: 11.35
Enterprise Products Partners L.P. (NYSE:EPD) ranks seventh on our list of the best low priced stocks that pay dividends. The midstream natural gas and crude oil pipeline company stands out in the midstream sector as one of the few companies with an investment-grade credit rating, while also maintaining one of the lowest debt ratios among its peers. This financial stability results in minimal investment risk, especially given the midstream industry’s reliable nature, often likened to utilities. The company’s prudent management approach further enhances its stability, making it a secure investment choice. Its strong fourth-quarter performance has reinforced analysts’ positive growth outlook.
In the fourth quarter of 2024, Enterprise Products Partners L.P. (NYSE:EPD) reported revenue of $14.2 billion, exceeding analysts’ expectations by $74.5 million. Its operating income reached $1.9 billion, while net income stood at $1.63 billion.
The company continued to generate strong cash flow, with operating cash flow surpassing $2.3 billion during the quarter and adjusted free cash flow amounting to $336 million. This financial strength enabled EPD to announce its 27th consecutive annual dividend increase in January 2025. It currently pays a quarterly dividend of $0.535 per share and has a dividend yield of 6.31%, as of March 17.
Over the past year, Enterprise Products Partners L.P. (NYSE:EPD) has gained nearly 18%, entering a growth phase fueled by rising demand for natural gas liquids (NGL) exports and increasing electricity consumption linked to AI. The company currently has $6.9 billion in expansion projects underway and expects AI-driven energy needs to drive further demand for natural gas. With an extensive pipeline and storage network, Enterprise is well-positioned to capitalize on these trends. It has also highlighted its strong presence in the Dallas-Fort Worth and San Antonio regions, which are emerging as key data center hubs.
6. The Kraft Heinz Company (NASDAQ:KHC)
Share Price as of the Close of March 17: $30.66
Forward P/E Ratio as of March 17: 11.10
An American multinational food company, The Kraft Heinz Company (NASDAQ:KHC) is well known for its diverse lineup of iconic food and beverage brands. Its popular brands include Kraft, Heinz, Philadelphia, Ore-Ida, Maxwell House, and Jell-O. With a strong reputation for quality, its products remain household essentials and are also widely used in the food service industry.
However, The Kraft Heinz Company (NASDAQ:KHC) has faced ongoing challenges, with its stock price declining by more than 12% over the past year. Its fourth-quarter 2024 results were mixed, as weaker sales were counterbalanced by profitability efforts. Adjusted earnings per share reached $0.84, exceeding market expectations by $0.06, largely due to unexpected tax benefits and a reduced share count. At the same time, revenue declined 5% year-over-year to $6.58 billion, falling short of the anticipated $6.66 billion amid continued weakness in organic sales. In its core US market, net sales dropped 3.9% compared to the previous year, with price hikes only partially offsetting lower sales volumes.
Despite these challenges, The Kraft Heinz Company (NASDAQ:KHC) maintained a solid financial position in fiscal 2024, generating $3.2 billion in free cash flow, a 6% increase from the prior year. Operating cash flow also improved, rising 5.2% year-over-year to $4.2 billion. The company returned $2.7 billion to shareholders through dividends and share buybacks, reinforcing its standing as one of the top dividend stocks. Its quarterly dividend comes in at $0.40 per share for a dividend yield of 5.22%, as of March 17.
5. Canadian Natural Resources Limited (NYSE:CNQ)
Share Price as of the Close of March 17: $29.86
Forward P/E Ratio as of March 17: 13.02
Canadian Natural Resources Limited (NYSE:CNQ) is a Canadian oil and natural gas company with operations in Western Canada, the UK portion of the North Sea, and Offshore Africa. The company has been actively expanding through strategic acquisitions, capitalizing on opportunities to enhance its future cash flow. The company finalized its purchase of Chevron’s Alberta assets at the end of 2024, which included a 20% stake in the Athabasca Oil Sands Project (AOSP) and a 70% operated interest in light crude oil and liquids-rich natural gas assets within the Duvernay play.
The year 2024 was a milestone for Canadian Natural Resources Limited (NYSE:CNQ), as it achieved record-breaking annual average production of over 1.36 million barrels of oil equivalent per day (boed), including an all-time high in annual liquids production, exceeding one million barrels per day. Financially, the company delivered strong results, reporting an adjusted earnings per share of C$2.34 in the fourth quarter, surpassing analysts’ expectations of C$2.15.
Canadian Natural Resources Limited (NYSE:CNQ)’s cash position also remained stable. In the most recent quarter, the company generated over $3.4 billion in operating cash flow, up from $3 billion in the previous quarter. Its free cash flow at the end of FY24 came in at $4.5 billion. This cash generation allowed the company to return $1.7 billion to shareholders through dividends and share repurchases.
On March 6, Canadian Natural Resources Limited (NYSE:CNQ) declared a 4.4% hike in its quarterly dividend to C$0.5875 per share. This marked the company’s 25th consecutive year of dividend growth. During this period, it has raised its payouts at a CAGR of 21%. The stock supports a dividend yield of 5.51%, as of March 17.
4. Franklin Resources, Inc. (NYSE:BEN)
Share Price as of the Close of March 17: $19.86
Forward P/E Ratio as of March 17: 9.44
Franklin Resources, Inc. (NYSE:BEN) operates as a global investment management firm through its subsidiaries under the Franklin Templeton brand, serving clients in over 150 countries. The company focuses on delivering strong investment outcomes through its expertise in asset management, wealth advisory, and technology-driven solutions. With a diverse group of specialist investment managers, Franklin Templeton offers a broad range of capabilities across equities, fixed income, alternative investments, and multi-asset strategies. Headquartered in California, the firm has a presence in key financial markets worldwide, employing more than 1,500 investment professionals. With over 75 years of experience, it managed approximately $1.6 trillion in assets under management (AUM) as of December 31, 2024.
In the first quarter of fiscal 2025, Franklin Resources, Inc. (NYSE:BEN) reported a 34% year-over-year increase in long-term inflows, excluding reinvested distributions. The firm recorded $17 billion in net inflows across equity, multi-asset, and alternative investment segments. However, long-term net outflows totaled $50 billion, excluding Western Asset Management. Despite this, the company still generated $18 billion in long-term net inflows across all asset classes.
Franklin Resources, Inc. (NYSE:BEN) is one of the best low priced stocks that pay dividends as the company has a strong dividend history. Its dividend growth streak spans 49 years. In addition, it offers an attractive dividend yield of 6.46%, as of March 17 and pays a quarterly dividend of $0.32 per share.
3. ARMOUR Residential REIT, Inc. (NYSE:ARR)
Share Price as of the Close of March 17: $18.70
Forward P/E Ratio as of March 17: 6.06
ARMOUR Residential REIT, Inc. (NYSE:ARR) is a Florida-based real estate investment trust company that mainly invests in mortgage-backed securities (MBS). In the fourth quarter of 2024, the company reported a net interest income of $12.7 million, which showed a staggering 119% growth from the same period last year. It reported distributable earnings of $46.5 million available to common stockholders, equating to $0.78 per common share. Additionally, it secured $136.2 million in capital through the issuance of 7,205,653 common shares as part of an at-the-market offering program.
ARMOUR Residential REIT, Inc. (NYSE:ARR) is dedicated to expanding homeownership opportunities for a broad segment of the population. Its strategy for delivering value to shareholders revolves around carefully investing in and managing a diverse, leveraged portfolio of MBS. In addition, the company emphasizes maintaining consistent dividend payouts for common shareholders, focusing on long-term goals rather than reacting to short-term market volatility.
ARMOUR Residential REIT, Inc. (NYSE:ARR) is popular among income investors because of its monthly dividend policy. It currently offers a monthly dividend of $0.24 per share. Despite a very high dividend yield of 15.38%, as of March 17, the company has never missed a dividend in the past 14 years. ARR is one of the best low priced stocks that pay dividends.
2. Amcor plc (NYSE:AMCR)
Share Price as of the Close of March 17: $9.85
Forward P/E Ratio as of March 17: 11.21
Amcor plc (NYSE:AMCR) is an Australian packaging company that offers a wide range of related products for different industries. The company is making steady progress on three key priorities: strengthening its core business, completing the necessary steps for its planned merger with Berry Global, and preparing for the integration process. The merger is expected to drive significant financial benefits, with cash earnings per share projected to rise by more than 35% and annual cash flow surpassing $3 billion. The company has also identified $650 million in total cost savings and financial synergies.
Looking ahead, management reaffirmed its full-year outlook, anticipating comparable constant currency growth between 3% and 8%. In addition, Amcor plc (NYSE:AMCR) remains confident in maintaining a leverage ratio of 3x or lower by the end of fiscal 2025 while generating adjusted free cash flow between $900 million and $1 billion. Strong insider buying over the past six months reflects confidence in the company’s growth trajectory.
In fiscal Q2 2025, Amcor plc (NYSE:AMCR) reported revenue of $3.24 billion, representing a slight 0.3% decline from the previous year. However, volumes increased by 2.3% year-over-year, building on the 1.6% growth recorded in the first quarter and marking four consecutive quarters of sequential volume gains. On a comparable constant currency basis, adjusted EBIT grew approximately 5% year-over-year to reach $363 million.
For the first half of fiscal 2025, Amcor plc (NYSE:AMCR) generated an operating cash flow of $228 million, up from $159 million in the same period the previous year. The company currently pays a quarterly dividend of $0.1275 per share, offering a dividend yield of 5.19% as of March 17. With 41 consecutive years of dividend increases, it remains one of the best low priced stocks that pay dividends.
1. Barings BDC, Inc. (NYSE:BBDC)
Share Price as of the Close of March 17: $9.43
Forward P/E Ratio as of March 17: 8.44
Barings BDC, Inc. (NYSE:BBDC) is a North Carolina-based business development company that specializes in debt investments in middle-market companies. In the fourth quarter of 2024, the company generated total investment income of $70.6 million, reflecting a 6.9% decline compared to the same period the previous year. The company reported net investment income of $29.5 million, or $0.28 per share, while net assets increased by $24.8 million, or $0.24 per share. Expanding its portfolio, it added 15 new investments worth $137.9 million and committed an additional $156.5 million to existing portfolio companies. Furthermore, the company participated in a $3.5 million equity co-investment alongside affiliated entities in a portfolio company that provides financing to plaintiff law firms engaged in mass tort and other civil litigation cases.
Barings BDC, Inc. (NYSE:BBDC) has positioned itself as a leading business development firm by seizing growth opportunities and generating strong shareholder returns. Over the past year, its stock has risen over 2.5%, an impressive feat given its relatively lower-risk profile. Unlike high-volatility stocks that may offer greater returns but come with heightened uncertainty, Barings BDC presents a more stable investment choice. Its consistent market performance, reliable dividend distributions, and increasing net asset value contribute to its reputation as a lower-risk option for investors.
Barings BDC, Inc. (NYSE:BBDC)’s quarterly dividend comes in at $0.26 per share and has a dividend yield of 11.06%, as recorded on March 17. With confidence in its portfolio and sustained positive momentum in early 2025, the company has also announced a special dividend totaling $0.15 per share, to be distributed in three equal quarterly payments starting in March. The company has been making regular dividend payments to shareholders since 2007.
Overall, Barings BDC, Inc. (NYSE:BBDC) ranks first on our list of the best low priced stocks that pay dividends. While we acknowledge the potential of BBDC as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than BBDC but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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