5 of the Best Dividend Stocks Under $20

Jason Williams

Posted May 23, 2024

Dear Reader,

In the pages of Wealth Daily, you’ll often catch me singing the praises of dividend stocks. And I’ve got good reason. Time and time again, dividend stocks outperform the rest of the market. And the income they spin off can add exponential gains to your portfolio. Also, despite their outperformance over time, they often cost far less than stocks that don’t pay dividends. So today, to help make that point inescapably clear, I want to share some of the best dividend stocks under $20…

best dividend stocks under $20

Because with the best dividend stocks under $20, it’s like the old Shoe Carnival commercials: You won’t pay a lot, but you’ll get a lot. And that’s because when you buy the best dividend stocks under $20, you can set yourself up for a literal lifetime of income. And you can use the power of compound returns to add exponential gains to your profits, too! So, without further ado from me, let’s get into my list of the best dividend stocks under $20 and then I’ll give you a special treat at the very end…

Best Dividend Stocks Under $20 — Arbor Realty Trust (NYSE: ABR)

I’m going to run through these alphabetically, and that means the first on my list of the best dividend stocks under $20 is none other than Arbor Realty Trust Inc. Arbor invests in and makes the loans people use to build single-family homes, multifamily homes, and even commercial real estate all over the United States. And it pays out a tidy share of its profits to investors in the form of a quarterly dividend.

best dividend stocks under $20 arbor

Arbor is what’s known as a real estate investment trust, or REIT. And that’s part of what makes it one of the best dividend stocks under $20. You see, REITs get special tax incentives from the government. But they only get those when they share at least 90% of their pretax profits with investors. So REITs typically pay BIG dividends. And Arbor is no exception. It’s currently paying almost 13% per year in dividends. That can add up to a whole lot of money if you hold onto it long enough. And that high yield and the imperative to keep paying it to keep that tax status helps make Arbor one of the best dividend stocks under $20.

Best Dividend Stocks Under $20 — Angel Oak Mortgage REIT Inc. (NYSE: AOMR)

Next up on my alphabetical list of the best dividend stocks under $20 is another company that’s involved in the financial side of real estate transactions. Angel Oak Mortgage REIT, as its name suggests, is another REIT that’s paying our at least 90% of its pretax profits to investors. But that’s not the only thing that makes this one of the best dividend stocks under $20…

best dividend stocks under $20 angel oak

Angel Oak, like Arbor, focuses on the financing side of real estate transactions. It does this by acquiring and originating mortgage loans and other mortgage-related assets like liens. It also offers residential mortgage loans and commercial mortgage loans to consumers and businesses. And it only operates in the U.S. markets. The company is currently spinning off cash to the tune of 11% per share per year. And it’s that direct focus and high dividend payout that make this one of the best dividend stocks under $20.

Best Dividend Stocks Under $20 — Ready Capital Corp. (NYSE: RC)

Coming in third — because that’s how the alphabet works — we’ve got another REIT. Because REITs pay the best dividends. And our third best dividend stock under $20 is a company called Ready Capital that’s also obligated to share the majority of its profits with investors. But Ready Capital is slightly different from the first two names on our list. And it’s that difference that helps make it one of the best dividend stocks under $20…

best dividend stocks under $20 ready cap

Ready Capital also operates as a real estate financing company. But instead of looking at the residential market, its entire focus is on the business side of the equation. Ready focuses on investing in and helping to finance the construction of commercial real estate. But it also has a segment that helps small businesses get SBA loans when they need to expand as well. Currently, it’s boosting shareholder returns of a good 12.5% each year with its payouts. And that’s why Ready Capital is one of the best dividend stocks under $20.

Best Dividend Stocks Under $20 — Two Harbors Investment Corp. (NYSE: TWO)

Next up on our list of the best dividend stocks under $20, we’ve got yet another REIT, because these are almost always the top dividend payers in any price range. And this one is also on the mortgage side of the real estate market. But Two Harbors specifically targets what are known as agency-backed assets. These are residential mortgage-backed securities that have been insured by one of the federal agencies that guarantees mortgages and loans. Think Fannie Mae, Freddie Mac, Ginnie Mae, etc. And this diversification is part of what makes Two Harbors one of the best dividend stocks under $20.

best dividend stocks under $20 two harbors

As a REIT, Two Harbors is obligated to share at least 90% of its pretax income with shareholders. And right now, that adds up to a massive 14% per share per year. That kind of payout can add up very quickly. And this kind of stock can also run up the charts fast as well. That potential for major movement and the juicy dividend while you wait are two more aspects that make this company one of the best dividend stocks under $20.

Best Dividend Stocks Under $20 — Urban Edge Properties (NYSE: UE)

And last on our list of the best dividend stocks under $20 is, you guessed it, another REIT. I’m telling you, when it comes to income, there’s nothing that beats these stocks. But when it comes to the kind of real estate investing Urban Edge Properties does, it’ll seem like a completely different beast. And that difference setting it apart from the field helps make it one of the best dividend stocks under $20.

best dividend stocks under $20 urban edge

You see, Urban Edge Properties actually invests in the physical real estate itself. It’s not just originating and buying loans. It’s collecting hard assets as well. This company’s focus is on owning, managing, acquiring, developing, and even redeveloping retail real estate in urban communities. It’s concentrated in the Washington, D.C., to Boston corridor, but has all the right tools to expand. And that expansion should help the company grow its 4% dividend to something more like the double-digit payouts our other best dividend stocks under $20 are handing out.

Best Dividend Stocks Under $20 — Special Offer

Now that we’ve covered the five best dividend stocks under $20 I promised you at the start, it’s time to fulfill another promise and get you that special opportunity I also mentioned… You see, when it comes to the best dividend stocks under $20 (or at any price, for that matter), the absolute best can always be found in the model portfolio of my flagship income-investing focused newsletter, The Wealth Advisory.

And when you become a member of The Wealth Advisory, you’re not just getting access to the best dividend stocks around. You’re also getting access to me, a former investment banking analyst with decades of experience leading folks just like you to profits they never thought imaginable. All these stocks I listed today have truly great potential. But I’m not sure if any compare to the best dividend stock under $20 I ever found.

That was back in late 2017 when the legalization of cannabis in Canada was igniting a profit explosion across every single pot stock. As I was doing my research and due diligence on the market, I found a company called Innovative Industrial Properties (NYSE: IIPR). At the time, it was a dividend stock under $20. It cost about $19 a share and paid a few cents per year.

But it quickly became the best dividend stock under $20 I ever uncovered, as its dividends just kept growing. The stock went from $0.60 a share to over $7 a share. And the share price followed suit, rising from under $20 to nearly $300 at the peak. My investors had the chance to pocket over 1,000% gains. And that’s not even counting all the income they got along the way. Add that in and you’re talking about over 1,200% overall gains from one dividend stock that cost less than $20.

best dividend stocks under $20 iipr

Now, I already gave you a good handful of the best dividend stocks under $20 today. But I’d like to help you get access to the best dividend stocks at every price range any time you want. So I want to offer you a special, discounted membership to The Wealth Advisory. And along with it, I want to share a special presentation about another company paying out big dividends to investors as it spins out growing AI-backed profits.

The presentation is free and there’s no commitment required from you. The membership costs a little more than nothing, but not much. And it’ll get you access not only to the best dividend stocks under $20, but also to myself, my team, and all the resources we have at our disposal. So take a few minutes out of your day today and get yourself set up for a lifetime of profits and steady income. And make sure to keep coming back to Wealth Daily to stay ahead of the rank-and-file investing world.

To your wealth,


Jason Williams

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After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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