Investing

5 Sizzling Stocks Under $20 That Pay Huge Ultra Yield Dividends

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While Most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Some of the most significant public companies, especially the technology giants, trade in the low to mid-hundreds to close to $1000. It’s hard to get decent share count leverage at those steep prices.

Many investors, especially more aggressive traders, look at lower-priced stocks to make good money and get a higher share count. That can help the decision-making process, especially when you are on to a winner, as you can always sell half of the position and keep half.

We screened our 24/7 Wall St. research database, looking for companies that could offer patient investors enormous returns for the rest of 2024 and beyond, and found five under $20 that look like big winners. For low-price stock skeptics, many of the biggest companies in the world, including Apple, Amazon, and NetFlix, all traded in single digits at once.

Energy Transfer

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The top master limited partnership is a safe way for investors looking for energy exposure and income as the company pays a massive 9.40% distribution. Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.

The company is a publicly traded limited partnership with core operations that include:

  • complementary natural gas midstream
  • Intrastate, and interstate transportation and storage assets;
  • crude oil, natural gas liquids (NGL) and r
  • efined product transportation and terminalling assets;
  • NGL fractionation; and various acquisition and marketing assets.

After the purchase of Enable Partners in December of 2021, Energy Transfer owns and operates more than 114,000 miles of pipelines and related assets in all of the major U.S. producing regions and markets across 41 states, further solidifying its leadership position in the midstream sector.

Through its ownership of Energy Transfer Operating, L.P., formerly known as Energy Transfer Partners, L.P., the company also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco LP (NYSE: SUN), and the general partner interests and 39.7 million standard units of USA Compression Partners, LP (NYSE: USAC).

TFS Finacial

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This off-the-radar financial stock has huge total return potential and pays a strong 8.48% dividend. Through its subsidiaries, TFS Financial Corporation (NASDAQ: TSFL) provides retail consumer banking services in the United States.

Its deposit products include:

  • Savings
  • Money market
  • Checking
  • Individual retirement, and other qualified plan accounts
  • Certificates of deposit

The company also provides:

  • Residential real estate mortgage loans
  • Residential construction loans
  • Home equity loans and lines of credit
  • Purchase mortgages
  • First mortgage refinance loans

In addition, it offers escrow and settlement services.

The company provides its products and services through its main office in Cleveland, Ohio, and multiple full-service branches and loan production offices throughout Ohio and Florida.

Petróleo Brasileiro S.A.

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This top energy company in Brazil pays a gigantic 17.24% dividend. Petróleo Brasileiro S.A. (NYSE: PBR) explores, produces, and sells oil and gas in Brazil and internationally.

The company operates through:

  • Exploration and Production
  • Refining
  • Transportation and Marketing
  • Gas and Power

It also engages in:

  • Prospecting
  • Drilling
  • Refining
  • Processing
  • Trading
  • Transporting crude oil from producing onshore and offshore oil fields shale or other rocks
  • Oil products, natural gas, and other liquid hydrocarbons

The Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to domestic refineries.

The Refining, Transportation, and Marketing segment engages in refining, logistics, transport, marketing, and trading of crude oil and oil products, exporting ethanol, and extracting and processing shale and holding interests in petrochemical companies.

The Gas and Power segment is involved in the:

  • Logistics and trading of natural gas and electricity
  • Transportation and trading of LNG
  • Generation of electricity through thermoelectric power plants
  • Holding interests in natural gas transportation and distribution
  • Fertilizer production and natural gas processing business

In addition, the company produces biodiesel and its co-products and ethanol and distributes oil products.

Trinity Capital

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Based in Phoenix, this business development company pays a massive 14.36% dividend. Trinity Capital, Inc. (NASDAQ: TRIN) is a venture capital firm specializing in venture debt to growth-stage companies looking for loans and equipment financing.

The company is an internally managed business development company leading provider of diversified financial solutions to growth-stage companies with institutional equity investors.

Trinity Capital’s investment objective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans, equipment financings, and equity-related investments.

The firm believes it is one of only a select group of specialty lenders with a depth of knowledge, experience, and track record in lending to growth-stage companies.

Vale

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This excellent commodity play pays investors a stellar 9.52% dividend. Vale S.A. (NYSE: VALE) and its subsidiaries produce and sell iron ore and pellets as raw materials in steelmaking in Brazil and internationally.

The company operates through the:

  • Iron Solutions
  • Energy Transition Materials segments.

The Iron Solutions segment produces and extracts iron ore, pellets, manganese, and other ferrous products and provides related logistic services.

The Energy Transition Materials segment:

  • Produces and extracts nickel used to make stainless steel, electric vehicles, and metal alloys
  • Gold
  • Silver
  • Cobalt
  • Precious metals
  • Platinum
  • Copper used in the construction sector to produce pipes and electrical wires

 

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