24/7 Insights

• Dividend stocks offer investors the opportunity to increase investment total return.
• Lower-priced dividend shares allow investors to build a larger position.
• Check out this free report: Access 2 legendary, high-yield dividend stocks Wall Street loves.

Dividend stocks are trusted among investors. They offer a secure income stream and a promising path for total return. Total return, a comprehensive measure of investment performance, includes interest, capital gains, dividends, and distributions realized over time.

Let's take a closer look at the concept of total return. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.

As mentioned, lower-priced dividend stocks help investors acquire more shares, which in turn helps increase the passive income stream those stocks can produce.

We screened our 24/7 Wall St. dividend stock database for solid stocks priced under $20 that offer solid and dependable dividends and have outstanding upside potential. Five companies are outstanding to add to portfolios now; all are rated Buy at top firms on Wall Street.

Why do we cover dividend stocks?

Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner's continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Amcor

This top company is a Dividend Aristocrat, and it makes sense now as it produces products that are always needed and pays a robust 5% dividend. Amcor PLC (NYSE: AMCR) manufactures and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions.The company operates through two segments:

• Flexibles
• Rigid Packaging

The Flexibles segment provides flexible and film packaging products in food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries.The Rigid Packaging segment offers rigid containers for a range of beverage and food products, including:

• Carbonated soft drinks
• Water
• Juices
• Sports drinks
• Milk-based beverages
• Spirits
• Beer
• Sauces
• Dressings
• Spreads
• Personal care items
• Plastic caps for various applications.

The company sells its products primarily through its direct sales force.

Columbia Banking System

While off-the-radar,this stock pays a rich 7% dividend and has strong total return potential. Columbia Banking System Inc. (NASDAQ: COLB) operates as the holding company of Umpqua Bank, which provides banking, private banking, mortgage, and other financial services in the United States.The company offers deposit products, including:

• Business, non-interest-bearing checking
• Interest-bearing checking and savings
• Money market
• Certificate of deposit accounts
• Insured cash sweep and other investment sweep solutions

It also providescommercial lending products, such as:

• Commercial lines of credit and term loans
• Accounts receivable and inventory financing
• International trade finance
• Commercial property loans
• Multifamily loans
• Equipment loans
• Commercial equipment leases
• Real estate construction loans
• Permanent financing, and small business administration program financing, as well as capital markets

In addition, the company offers:

• Wealth management comprising financial planning, investment, trust, and insurance
• Treasury management, which includes digital and mobile banking solutions,
• ACH, wires, positive pay, remote deposit capture, integrated payments,
• Integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking-related products
• Merchant services; and brokerage services
• Residential real estate loans and consumer loans

Energy Transfer

The top master limited partnershipis a safe way for investors looking for energy exposure and income, as the company pays a massive 8.26% distribution. Energy Transfer L.P. (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 refined product transportation and terminalling assets
• NGL fractionation and various acquisition and marketing assets

Energy Transfer owns and operates more than 114,000 miles of pipelines and related assets in all significant 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., 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 L.P. (NYSE: SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners L.P. (NYSE: USAC).

Ford

This legacy carmakerpays shareholders a rich 4.71 dividend. Ford Motor Co. (NYSE: F) develops, delivers, and services a range of Ford trucks, commercial cars, and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. It operates through five segments:

• Ford Blue
• Ford Model e
• Ford Pro
• Ford Next
• Ford Credit

The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers and dealerships to commercial fleet customers, daily rental car companies, and governments. It also engages invehicle-related financing and leasing activities to and through automotive dealers.In addition,the company provides retail installment sale contracts for:

• New and used vehicles
• Direct financing leases for new cars to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers.

Further, it offers wholesale loans to dealers to finance the purchase of vehicle inventory, loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs. 

Vale

This excellent commodity play pays investors a stellar 15.38% dividend. Vale S.A. (NYSE: VALE) and its subsidiaries produce and sell iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally.

The company operates through two segments:

•  Iron Solutions and
• Energy Transition Materials

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, which is used to produce stainless steel, electric vehicles, and metal alloys, and its by-products, such as:

• Gold
• Silver
• Cobalt
• Precious metals
• Platinum

It also produces and extracts copper, which is used in the construction sector to produce pipes and electrical wires.

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