Investing

6 Dividend Stocks To Buy Under $25 With Incredible Upside Potential

Lee Jackson

Published: February 20, 2024 11:00 am

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 $25 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.

Flowers Foods

This company looks like a strong buy after paying a solid 4.10% dividend and posting solid earnings. Flowers Foods, Inc. (NYSE: FLO) produces and markets packaged bakery food products in the United States.

Its principal products include fresh breads, buns, rolls, snack cakes, and tortillas, as well as frozen breads and rolls under theses well-know brands.:

• Nature’s Own
• Dave’s Killer Bread
• Wonder
• Canyon Bakehouse
• Mrs. Freshley’s
• Tastykake

The company distributes its products through a direct-store-delivery distribution and a warehouse delivery system and operates bakeries.

Its customers include:

• National and regional restaurants
• Institutions and foodservice distributors, and retail in-store bakeries
• Wholesale distributors
• Mass merchandisers, supermarkets and other retailers
• Vending outlets, and convenience stores
• Quick-serve chains, food wholesalers, dollar stores, and vending companies
• Public health care, military commissaries, and prisons, and other governmental institutions.

Kennedy-Wilson

This off-the-radar company offers a fat 9.48% dividend and enormous upside possibilities; Kennedy-Wilson Holdings, Inc. (NYSE: KW) and its subsidiaries operate as a real estate investment company.

The company owns, operates, and invests in real estate on its own and through its investment management platform.

It focuses on multifamily and office properties in the:

• Western United States
• The United Kingdom
• Ireland
• Spain
• Italy
• Japan

The company had ownership interests in multifamily units, office space, retail and industrial space, and a hotel. It is also involved in developing, redeveloping, and entitling real estate properties.

KeyCorp

This top regional bank is very cheap at current levels for investors looking at financials and pays a hefty 5.83% dividend. KeyCorp. (NYSE: KEY) operates as the bank holding company for KeyBank National Association and provides deposit, lending, cash management, and investment services to individuals and small and medium-sized businesses under KeyBank National Association.

KeyCorp also provides a broad range of sophisticated corporate and investment banking products, such as:

• Merger and acquisition advice
• Public and private debt and equity
• Syndications
• Derivatives to middle market companies in selected industries throughout the United States under KeyBanc Capital Markets.

Manulife Financial

This stock pays a solid 4.78% dividend and looks poised to break out to new highs. Manulife Finacial Corporation (NYSE: MFC) provides financial products and services in the United States, Canada, Asia, and Europe.

The company operates through:

• Wealth and Asset Management Businesses
• Insurance and Annuity Products
• Corporate and Other segments

The Wealth and Asset Management Businesses segment offers investment advice and solutions to:

• Retirement, retail, and institutional clients through multiple distribution channels, including agents and brokers affiliated with the company
• Independent securities brokerage firms
• Financial advisors, pension plan consultants, and banks

The Insurance and Annuity Products segment provides:

• Deposit and credit products
• Individual life insurance
• Individual and group long-term care insurance
• Guaranteed and partially guaranteed annuity products through multiple distribution channels, including insurance agents, brokers, banks, financial planners, and direct marketing

The Corporate and Other segment involves property and casualty reinsurance businesses, run-off reinsurance operations, variable annuities, and accident and health.

The company also manages timberland and agricultural portfolios.

It also engages in insurance agencies, investment counseling and dealers, portfolio and mutual fund management, property and casualty insurance, and mutual fund dealer businesses.

Midland States Bancorp

This off-the-radar bank could be a steal at current trading levels and pays a stellar 4.97% dividend. Midland States Bancorp, Inc. (NASDAQ: MSBI) operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities.

It operates through:

• Banking
• Wealth Management
• Other segments

The company provides a range of financial products and services to consumers and businesses, including:

• Commercial loans to finance agricultural equipment and production
• Commercial real estate loans for owner-occupied offices, warehouses and production facilities, office buildings, hotels, mixed-use residential and commercial facilities, retail centers, multifamily properties, and assisted living facilities.

In addition, it offers construction and land development loans, such as:

• Real estate investment properties and residential developments, and lesser extent loans; and residential real estate loans, which include first and second mortgage loans and home equity lines of credit consisting of loans secured by first or second mortgages on primary owner-occupied primary residences.
• The company also provides consumer installment loans for purchasing cars, boats, and other recreational vehicles, as well as for purchasing major appliances and other home improvement projects and commercial equipment leasing programs for manufacturing, construction, transportation, and healthcare industries.

Trinity Capital

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.