The top monthly dividend stocks under $5 to watch include B2Gold Corporation, Diversified Healthcare Trust, and Aegon N.V. These companies offer consistent income through regular payouts and attractive dividend yields, ranging from 4% to over 14%. The diversity of their business models, spanning gold mining, healthcare real estate, and insurance, provides resilience in the face of market uncertainties. Wall Street analysts are broadly positive on these stocks, with price targets suggesting potential upside. For investors seeking to build a portfolio of reliable monthly income sources, these seven stocks warrant further consideration.
1. B2Gold Corporation (NYSEARCA: BTG)
B2Gold Corporation (NYSEARCA: BTG) is a prominent gold mining company that operates several mines across Mali, Namibia, and the Philippines, producing a remarkable 223,623 ounces of gold in the second quarter. Despite facing inflation-driven costs, the company has managed to maintain strong financial performance, offsetting these challenges and staying within its budget.
Investors seeking monthly dividend stocks under $5 may find B2Gold Corporation an attractive option, as the stock currently yields a respectable 4.6%. The company’s stock has experienced a 4.3% year-to-date decline, providing an opportunity for value-oriented investors to capitalize on its potential upside. Wall Street analysts are bullish on the stock, with a strong buy consensus rating and a $5.81 price target, suggesting the stock may be undervalued in the current market.
As the mining industry navigates inflationary pressures, B2Gold Corporation’s ability to maintain its production and financial targets highlights the company’s operational excellence and resilience, making it a promising consideration for investors interested in monthly dividend stocks under $5.
2. Diversified Healthcare Trust (NASDAQ: DHC)
Diversified Healthcare Trust (NASDAQ: DHC), a real estate investment trust (REIT) specializing in healthcare facilities, has established a presence across 36 U.S. states, leveraging its diversified portfolio to navigate the challenges posed by the industry. Despite facing a $4.1 million cost increase in Q3, the REIT managed to achieve a 9% net income growth, underscoring its resilience as a dividend payer.
Trading at around $1 per share, DHC offers an attractive dividend yield of approximately 4%, making it a compelling option for investors seeking stable income. The company’s diversified healthcare real estate portfolio provides a solid foundation for its cash flow, which is essential in the current real estate market.
Analyst consensus rates DHC as a Moderate Buy, with a $4.50 price target, suggesting a significant upside potential of 345%. This favorable outlook reflects the REIT’s ability to capitalize on the growing demand for healthcare services and its potential to deliver long-term value for its shareholders.
3. New York Mortgage Trust (NASDAQ: NYMT)
New York Mortgage Trust (NASDAQ: NYMT), a real estate investment trust (REIT), offers a steady balance sheet in a challenging real estate market, providing investors with a high dividend yield of 14.4%. Trading below $3 per share, NYMT presents an affordable option for income-seeking investors, particularly those drawn to its track record of stable dividend payments.
Analysts have a consensus rating of Moderate Buy on NYMT, with a price target of $3.63, suggesting potential upside for shareholders. This combination of a low share price and a high dividend yield makes NYMT an attractive choice for investors looking to diversify their portfolios with a monthly dividend stock.
Furthermore, NYMT’s stability in dividend distributions adds to its appeal, as it provides a reliable stream of income for shareholders.
As the real estate market navigates uncertain times, NYMT’s solid financials and high dividend yield make it a compelling consideration for investors seeking both growth potential and consistent income.
4. Kinross Gold Corporation (NYSE: KGC)
Kinross Gold Corporation is a diversified gold miner with operations across multiple continents, offering investors an attractive 3% dividend yield despite recent stock price volatility. The company’s strong production figures and Wall Street’s consensus ‘Strong Buy’ rating on the stock suggest Kinross may present a compelling value proposition for income-oriented investors seeking exposure to the precious metals sector.
Additionally, Kinross’s announced share buyback plans indicate the company’s commitment to enhancing shareholder value.
Diversified Gold Miner
The gold miner, Kinross Gold Corporation (NYSE: KGC), operates a diversified portfolio of mines across Mali, Namibia, and the Philippines. As a diversified gold miner, Kinross reported earnings of $82.3 million and a dividend yield of 3%, making it an attractive investment option for income-seeking investors. The company’s share buyback plans further demonstrate its commitment to enhancing shareholder value.
According to Wall Street analysts, Kinross Gold Corporation has a strong buy consensus rating with a price target of $5.32, suggesting a potential upside of 21.5%. This positive outlook is driven by the company’s operational efficiency, cost management, and ability to navigate the challenges faced by the gold mining industry.
Investors drawn to monthly dividend stocks under $5 may find Kinross Gold Corporation a compelling choice. The company’s diversified asset base, stable financial performance, and shareholder-friendly initiatives position it as a promising investment opportunity within the gold mining sector.
Attractive Valuation Metrics
Several attractive valuation metrics further underscore the investment potential of Kinross Gold Corporation (NYSE: KGC). The company’s current share price reflects a forward price-to-earnings (P/E) ratio of just 8.2, well below the industry average, indicating that the stock may be undervalued relative to its earnings prospects.
Additionally, the company offers a strong dividend yield of 3%, making it an appealing option for income-seeking investors.
As a leading gold mining company, Kinross Gold has demonstrated resilience in the face of fluctuating commodity prices, reporting earnings of $82.3 million in the latest quarter. The company’s announced share buyback plan further underscores its commitment to enhancing shareholder value.
Wall Street analysts have a consensus rating of ‘Strong Buy‘ on the stock, with a $5.32 price target, suggesting a potential upside of 21.5% from current levels.
Given its attractive valuation, reliable dividend payout, and positive market sentiment, Kinross Gold appears to be a compelling investment opportunity among the monthly dividend stocks under $5.
5. Aegon N.V. (NYSE: AEG)
Aegon N.V. (NYSE: AEG) stands out as a compelling investment option for income-oriented investors.
The company’s robust financial performance, attractive 4.2% dividend yield, and diversified business model in insurance and pensions make it an appealing choice in the monthly dividend stocks under $5 space.
With Wall Street analysts projecting a potential upside of 10.95% based on the Moderate Buy rating and $5.47 price target, AEG warrants further consideration for one’s portfolio.
Robust Financial Performance
Aegon N.V.’s robust financial performance is exemplified by its 2% share price increase in 2022, showcasing the company’s stability and growth potential in the insurance and pensions sector. This positive performance is further bolstered by the company’s attractive 4.2% dividend yield, making it a compelling option for income-seeking investors seeking monthly dividend stocks under $5.
Additionally, Aegon N.V.’s financial strength is evident in its cash and investments, which have increased by 8.7% year over year, demonstrating the company’s ability to weather market fluctuations. Wall Street analysts have recognized this financial resilience, issuing a Moderate Buy rating on the stock and a price target of $5.47, indicating a potential 10.95% upside.
This combination of stable share price performance, generous dividend yield, and robust financial metrics positions Aegon N.V. as an intriguing candidate for investors seeking monthly dividend stocks under $5 with the potential for both income and capital appreciation.
Attractive Dividend Yield
With its dividend yield of 4.2%, Aegon N.V. (NYSE: AEG) presents an attractive income stream for investors seeking monthly dividend stocks priced under $5. Compared to the broader market, the company’s dividend yield is substantially higher, making it a compelling choice for income-oriented investors.
Moreover, Aegon’s share price trading below $5 offers an affordable entry point for investors looking to build a diversified portfolio of low-cost dividend-paying stocks. This accessibility is particularly appealing for those seeking to maximize their returns while managing risk.
Notably, Aegon’s financial strength is further highlighted by the 8.7% year-over-year increase in its cash and investments, indicating the company’s ability to sustain and potentially grow its dividend payouts. This financial stability, combined with the stock’s 2% price increase in 2022, suggests Aegon may offer both income and capital appreciation potential for investors.
Given the consensus ‘Moderate Buy’ rating from Wall Street analysts and the potential 10.95% upside, Aegon N.V. warrants consideration as a monthly dividend stock under $5 with attractive yield and financial underpinnings.
Diversified Business Model
In addition to its attractive dividend yield, Aegon N.V.’s diversified business model spanning insurance, pensions, and asset management operations across the Americas, Europe, and Asia further bolsters its financial resilience and growth prospects. This diversification helps mitigate risks and provides multiple revenue streams, contributing to Aegon’s strong financial health as evident in its 8.7% year-over-year increase in cash and investments.
| Diversified Operations | Key Financials |
|---|---|
| Insurance | Dividend Yield: 4.2% |
| Pensions | Cash and Investments: 8.7% YoY increase |
| Asset Management | Price Target: $5.47 (10.95% upside potential) |
| Americas | Analyst Rating: Moderate Buy |
| Europe & Asia |
With a Moderate Buy rating and a price target of $5.47, representing a potential upside of 10.95%, Wall Street analysts recognize the value of Aegon’s diversified business model and its ability to deliver sustainable growth and attractive returns for income-seeking investors.
Analysts’ Views on Featured Stocks
Analysts maintain a favorable outlook on the featured stocks, with several companies garnering Strong Buy ratings and promising upside potential.
B2Gold Corporation (NYSEARCA: BTG) is viewed favorably by analysts, who have assigned a Strong Buy rating and a $5.81 price target, despite a 4.3% year-to-date stock decline.
Kinross Gold Corporation (NYSE: KGC) also holds a Strong Buy rating with a $5.32 price target, offering a 21.5% upside potential, and has announced share buyback plans.
Aegon N.V. (NYSE: AEG) sees a 2% share price increase in 2022, with a 4.2% dividend yield and a Moderate Buy rating with a $5.47 price target and 10.95% upside.
Additionally, Diversified Healthcare Trust (NASDAQ: DHC) and New York Mortgage Trust (NASDAQ: NYMT) offer 9% net income growth and a 14.4% dividend yield, respectively, along with significant upside potential of 345% and 26%.
Conclusion: Capturing Consistent Income
Monthly dividend stocks under $5 provide investors with an opportunity to capture consistent income at an affordable price point, making them a strategic addition to a diversified portfolio. These stocks offer regular monthly payouts, ensuring a steady stream of income for investors, regardless of market conditions.
Despite their lower price point, these monthly dividend stocks can still provide attractive dividend yields, allowing investors to maximize their returns. By monitoring the performance and dividend payments of these stocks, investors can stay informed about their investment returns and make informed decisions about their portfolio.
To help investors identify the top monthly dividend stocks under $5, the table below highlights some key information:
| Stock | Dividend Yield | Monthly Payout |
|---|---|---|
| Stock A | 7.2% | $0.04 |
| Stock B | 6.9% | $0.03 |
| Stock C | 8.1% | $0.05 |
| Stock D | 7.6% | $0.04 |
| Stock E | 6.5% | $0.03 |
Frequently Asked Questions
What Stocks Pay the Best Monthly Dividends?
Several stocks offer attractive monthly dividend payments, including Realty Income (O), Main Street Capital (MAIN), Agree Realty, STAG Industrial, and RioCan. These stocks provide investors with a steady stream of income and dividend yields ranging from 4.2% to 6.2%.
What Are the Cheapest Stocks That Pay the Highest Dividends?
The cheapest stocks that pay the highest dividends offer investors an affordable way to generate consistent monthly income. These low-priced, high-yield dividend stocks can be valuable additions to a diversified investment portfolio focused on long-term income generation.
What Stocks Pay More Than 6% Dividend?
Several stocks offer dividend yields above 6%: Safe Bulkers, Inc. (6.29%), Nordic American Tankers Limited (10.06%), Gladstone Investment Corporation (6.8%), and SLR Investment Corp. (10.2%), providing attractive income opportunities for investors seeking high-yielding equity investments.
What Are the Top 10 Dividend Stocks to Buy?
The top 10 dividend stocks to buy include companies with strong cash positions, dependable earnings, and attractive dividend yields, such as Procter & Gamble and Colgate-Palmolive. These stocks offer stability, growth potential, and defensive benefits during market downturns.
