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Highest-Yielding Dividend Stocks Under $5

Investors who suffered through the worst August performance for stocks in nine years have turned to dividend-paying shares. Several under-$5 stocks still offer outsized dividend yields to those willing to take on additional risk.

U.S. stocks dove last month on concern of a double-dip recession. The S&P 500 slumped almost 5%. Large-cap companies, such as Dow members Coca-Cola , United Technologies and AT&T , offered steadier returns, buoyed by big dividends.

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A handful of stocks trading at less than $5 have even higher dividend yields than those Dow members.

That may prove necessary for investors who are looking on the cheap end, as September is typically the worst month of the year in terms of share-price performance.

TheStreet narrowed the vast number of dividend-paying, under-$5 stocks by including only those that trade on the New York Stock Exchange, Amex and Nasdaq, and excluding real estate investment trusts (REITs), royalty trusts and master limited partnerships (MLPs).

The list is ranked from lowest yielding to highest.

7. Advance America, Cash Advance Centers

Company Profile: Advance America, Cash Advance Centers is a provider of cash advance services in the U.S.

Dividend Yield: 7% (forward annual)

Closing price: $3.57 (Sept. 17)

Financial Metrics: Advance America has a price-to-book ratio of 0.99, which indicates the stock trades evenly with its book value.

Analyst Consensus: Of the four analysts covering Advance America, three, or 75%, say investors should hold the stock. One research firm, Stephens Inc., has a "buy" rating on the stock.

6. General Maritime

Company Profile: General Maritime is a provider of international seaborne crude oil transportation services.

Dividend Yield: 7% (forward annual)

Closing price: $4.57 (Sept. 17)

Financial Metrics: General Maritime has a price-to-book ratio of 0.78, which suggests the stock may be undervalued based on book value. General Maritime's quick ratio, which measures the ability to meet short-term obligations with its most liquid assets, is 3.5, indicating the transportation company would be able to meet its current liabilities.

Analyst Consensus: General Maritime is among the most widely covered stocks on this list. The company is rated "buy" by nine analysts, while another five recommend investors hold the stock. Two research firms rate it "sell." The average of 10 recent stock-price targets is $8.62, which is nearly double where the stock currently trades.

5. Primedia

Company Profile: Primedia is an integrated media company that publishes and distributes advertising-supported print and online consumer guides, mainly for the apartment and other rental property sectors of the residential real estate industry in the U.S.

Dividend Yield: 8.2% (forward annual)

Closing price: $3.43 (Sept. 17)

Financial Metrics: Primedia has a negative book value as of its last quarterly report in August. Primedia's quick ratio, which measures the ability to meet short-term obligations with its most liquid assets, is 0.7, indicating the media company may have difficulty meeting its current liabilities.

Analyst Consensus: JPMorgan, the only research firm that covers Primedia, has a "neutral" rating on the stock.

4. China Nepstar Chain Drugstore

Company Profile: China Nepstar Chain Drugstore and its subsidiaries operate retail drugstores in China.

Dividend Yield: 8.7% (forward annual)

Closing price: $3.02 (Sept. 17)

Financial Metrics: China Nepstar has a price-to-book ratio of 1.46, which indicates the stock may be slightly overvalued based on book value. China Nepstar's quick ratio, which measures the ability to meet short-term obligations with its most liquid assets, is 2.4, indicating the drugstore company would be able to meet its current liabilities.

Analyst Consensus: Five analysts follow China Nepstar, although only one firm (Roth Capital Partners) says investors should buy the stock. Another two firms, including Goldman Sachs, have a "hold" or "neutral" rating on the stock, while two analysts rate China Nepstar a "sell."

3. Universal Insurance Holdings

Company Profile: Universal Insurance Holdings is an insurance holding company, which, through its various subsidiaries, covers substantially all aspects of insurance underwriting, distribution, claims processing and exposure management.

Dividend Yield: 8.7% (forward annual)

Closing price: $4.61 (Sept. 17)

Financial Metrics: Universal Insurance has a price-to-book ratio of 1.41, which indicates the stock may be slightly overvalued based on book value.

Analyst Consensus: Only one research firm, EVA Dimensions, has coverage on Universal Insurance and recommends that investors hold the shares.

2. Himax Technologies

Company Profile: Himax Technologies designs, develops and markets semiconductors that are components of flat-panel displays. Its main products are display drivers for large thin-film transistor liquid crystal display (TFT-LCD) panels.

Dividend Yield: 10.1% (forward annual)

Closing price: $2.38 (Sept. 17)

Financial Metrics: Himax has a price-to-book ratio of 2.14, which indicates the stock may be overvalued based on book value. Himax's quick ratio, which measures the ability to meet short-term obligations with its most liquid assets, is 1.8, indicating the components company would be able to meet its current liabilities.

Analyst Consensus: Four analysts cover Himax, and only one recommends investors hold the stock. Three research firms, including Chardan Capital, have a "sell" rating. No research firm rates Himax a "buy."

1. DHT Holdings

Company Profile: DHT Holdings operates a fleet of double-hull tankers.

Dividend Yield: 10.1% (forward annual)

Closing price: $3.98 (Sept. 17)

Financial Metrics: DHT has a price-to-book ratio of 1.01, which indicates the stock trades evenly with book value. DHT's quick ratio, which measures the ability to meet short-term obligations with its most liquid assets, is 2.4, indicating the tanker company would be able to meet its current liabilities.

Analyst Consensus: Seven research firms currently cover DHT, but only one (Jefferies) recommends the stock as a "buy." Another five recommend that investors hold shares of DHT, while another has a "sell" rating.

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Disclosures:

TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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