Investors Can Grab Incredible Passive Income From 5 Stocks Trading at $5 or Less

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By Lee Jackson Published

Quick Read

  • The lower a stock’s price, the more shares investors can acquire.

  • Buying more shares of passive income dividend stocks can boost income dramatically.

  • Our huge 24/7 Wall St. dividend stock database includes five under $5.

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Investors Can Grab Incredible Passive Income From 5 Stocks Trading at $5 or Less

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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. Many of the most significant public companies, especially the technology giants, trade at prices up to $1,000 per share, while many are in the low to mid-hundreds. It is hard to get decent share count leverage at those steep prices.

Low-price stock skeptics should note that many of the world’s biggest companies, including Apple, Amazon, Netflix, and Nvidia, once traded in the single digits. We screened our 24/7 Wall St. research database, looking for smaller-cap companies that could offer patient investors enormous returns for the rest of 2025 and beyond. Five companies that hit our screens also pay huge dividends, making the total return potential even more intriguing.

Braemar Hotels & Resorts

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Ashford Trust and Braemar Hotels & Resorts own 83 hotels with more than 20,000 rooms.

Trading below $3, with a sweet 7.84% dividend, growth, and income, investors can load the boat on this stock. Braemar Hotels & Resorts Inc. (NYSE: BHR) is a real estate investment trust focused on luxury hotels and resorts. Its business objectives are to generate attractive returns on its invested capital and long-term growth in cash flow to maximize total returns to its stockholders.

The company operates in the direct hotel investment segment of the hotel lodging industry.

It owns interests in 16 hotel properties in seven states, the District of Columbia, Puerto Rico, and St. Thomas, U.S. Virgin Islands, with 4,192 total rooms, or 3,957 net rooms.

The hotel properties in its portfolio are predominantly located in urban and resort locations in the United States. It also directly owns 14 hotel properties and the remaining two through an investment in a majority-owned consolidated joint venture entity. All of the hotel properties in its portfolio are asset-managed by Ashford.

The company’s hotel properties include:

  • Capital Hilton
  • The Clancy
  • The Notary Hotel

Medical Properties Trust

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Medical Properties Trust is a REIT formed in 2003 to acquire and develop net-leased hospital facilities.

This company has lowered the dividend and sold off properties to improve and strengthen its balance sheet. Medical Properties Trust (NYSE: MPW) is a self-advised real estate investment trust (REIT) paying a strong 7.82% dividend.

The company conducts all its operations through its subsidiary, MPT Operating Partnership L.P. (the Operating Partnership).

It acquires and develops healthcare facilities and leases them to healthcare operating companies under long-term net leases.

It also makes mortgage loans to healthcare operators collateralized by their real estate assets. The company selectively loans some operators through its taxable REIT subsidiaries.

Medical Properties Trust has healthcare investments in the United States, Europe, and South America. It also owns hospital real estate with over 415 facilities in nine countries and three continents. The company’s financing model facilitates acquisitions and recapitalizations and allows hospital operators to unlock the value of their real estate assets to fund facility improvements, technology upgrades, and other operations investments.

Nordic American Tankers

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Nordic American Tankers has declared dividends to shareholders each quarter since 1997.

With a massive 14.60% dividend and trading below $3, Nordic American Tankers Ltd. (NYSE: NAT) is another stock investors can take a prominent position. It is an international tanker company focusing solely on owning, operating, and chartering Suezmax tankers.

The company has a fleet of approximately 20 Suezmax crude oil tankers, each with a carrying capacity of one million barrels of oil.

The company’s tankers operating in the spot market are chartered for a single voyage. The vessels in the Company’s fleet are homogenous and interchangeable, as they have the same freight capacity and can transport the same type of cargo.

Its vessels include:

  • Nordic Pollux
  • Nordic Apollo
  • Nordic Luna
  • Nordic Castor
  • Nordic Freedom
  • Nordic Sprinter
  • Nordic Skier
  • Nordic Vega
  • Nordic Light
  • Nordic Cross
  • Nordic Breeze
  • Nordic Zenith
  • Nordic Star
  • Nordic Space
  • Nordic Aquarius
  • Nordic Cygnus
  • Nordic Tellus
  • Nordic Hunter
  • Nordic Harrier

Orion Office REIT

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Orion Office REIT specializes in the ownership, acquisition, and management of a diversified portfolio of high-quality office buildings.

Trading under $4 with a massive 10.18% dividend, this company could double in price from its current trading levels. Orion Office REIT Inc. (NYSE: ONL)  is an internally managed REIT. The company is engaged in the ownership, acquisition, and management of a diversified portfolio of office buildings located in suburban markets across the United States and leased primarily to a single tenant.

Its portfolio comprises:

  • Traditional office buildings
  • Governmental offices
  • Medical offices
  • Offices/laboratories
  • Offices/Research
  • Office/flex properties

The company owns and operates 75 office properties with an aggregate of 8.7 million leasable square feet in 29 states. It leases its corporate office space, including its corporate headquarters, which is located in Phoenix, Arizona.

Its tenants operate in various industries:

  • Healthcare equipment and services
  • Government and public services
  • Financial institutions
  • Insurance
  • Capital goods
  • Software and services
  • Consumer durables and apparel
  • Telecommunication services
  • Materials
  • Energy

Prospect Capital

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Prospect Capital is a leading flexible private debt and equity capital provider.

This top business development company and the gigantic 12.47% dividend make it a potential total return home run. Prospect Capital Corp. (NASDAQ: PSEC) specializes in the middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending, and bridge transactions.

It also invests in the multi-family residential real estate asset class. The fund makes secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second-lien, private debt, private equity, mezzanine debt, and equity investments in private and microcap public businesses.

Prospect Capital focuses on both primary origination and secondary loans/portfolios. It invests in debt financing for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, and real estate financings/investments.

The company invests in the following sectors and business silos:

  • Aerospace and defense
  • Chemicals
  • Conglomerate and consumer services
  • Ecological
  • Electronics
  • Financial services
  • Machinery and Manufacturing
  • Media
  • Pharmaceuticals
  • Retail
  • Software
  • Specialty Minerals
  • Textiles and leather
  • Transportation
  • Oil gas and coal production

In addition to favoring materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors.

Four High-Yield Stocks With 7% and Higher Dividends Are 2025 Home Runs

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About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.

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