You don't need thousands of dollars to start earning dividends. These stocks trade under $20 per share and pay yields up to 14%. Plus, most brokers now offer fractional shares, so even $5 gets you started.
With fractional share investing at Fidelity, Schwab, and Robinhood, you can buy any stock for as little as $1 regardless of share price. This means a $500 stock like Broadcom is just as accessible as a $10 stock.
That said, many investors prefer owning whole shares for psychological and practical reasons. If you want to build positions with whole shares on a tight budget, these under-$20 stocks let you diversify without needing a large account.
| Stock | Price | Yield | Annual Div | Payout Ratio | Sector |
|---|---|---|---|---|---|
| T | $17.50 | 6.5% | $1.11 | 50% | Telecom |
| F | $11.20 | 5.4% | $0.60 | 45% | Auto |
| VALE | $10.50 | 8.2% | $0.86 | 55% | Mining |
| KGC | $8.90 | 2.2% | $0.20 | 35% | Gold Mining |
| AGNC | $10.20 | 14.0% | $1.44 | 95% | Mortgage REIT |
| NLY | $19.80 | 13.2% | $2.60 | 92% | Mortgage REIT |
| CLF | $14.50 | 1.4% | $0.20 | 15% | Steel |
| USB | $18.90 | 4.2% | $1.96 | 45% | Banking |
| STAG | $18.50 | 4.8% | $1.47 | 70% | Industrial REIT |
| MPW | $4.50 | 4.4% | $0.20 | 40% | Healthcare REIT |
| M | $16.80 | 4.2% | $0.67 | 35% | Retail |
Highest yield on this list
Share Price
$17.50
Dividend Yield
6.5%
Annual Dividend
$1.11
Payout Ratio
50%
After spinning off WarnerMedia and cutting its dividend in 2022, AT&T now has a sustainable payout with room to grow. Free cash flow covers the dividend 2x over. The 5G rollout and fiber expansion drive subscriber growth, and the stock price reflects years of pessimism that may be overdone.
EV transition play
Share Price
$11.20
Dividend Yield
5.4%
Annual Dividend
$0.60
Payout Ratio
45%
Ford offers one of the highest yields in the auto industry. The F-150 Lightning and strong truck sales generate massive cash flow. Management has committed to the regular dividend plus special dividends when cash permits. A turnaround story with real income potential.
Potential future dividend
Share Price
$12.80
Dividend Yield
0%
Annual Dividend
None
Payout Ratio
0%
While WBD does not currently pay a dividend, it is included as a watchlist candidate. As debt paydown accelerates and Max streaming achieves profitability, a dividend initiation could come in 2026-2027. At under $15, this is a speculative name to monitor for future income.
Highest yield mining stock
Share Price
$10.50
Dividend Yield
8.2%
Annual Dividend
$0.86
Payout Ratio
55%
Brazilian mining giant Vale is the world's largest iron ore producer. Its variable dividend policy pays out a minimum of $1 billion per year, with additional payouts tied to iron ore prices. At current prices, the yield exceeds 8%, though it fluctuates with commodity markets.
Gold price hedge
Share Price
$8.90
Dividend Yield
2.2%
Annual Dividend
$0.20
Payout Ratio
35%
Kinross Gold benefits from elevated gold prices and has steadily increased its dividend. Gold miners serve as an inflation hedge and portfolio diversifier. With a low payout ratio of 35%, there is significant room for dividend growth as gold remains above $2,000 per ounce.
Ultra-high yield
Share Price
$10.20
Dividend Yield
14.0%
Annual Dividend
$1.44
Payout Ratio
95%
AGNC Investment is a mortgage REIT that invests in agency mortgage-backed securities guaranteed by the US government. The 14% yield is among the highest of any stock, but understand the risk: mortgage REITs use leverage and the dividend can fluctuate with interest rates. Best as a small portfolio position.
Largest mortgage REIT
Share Price
$19.80
Dividend Yield
13.2%
Annual Dividend
$2.60
Payout Ratio
92%
Annaly is the largest publicly traded mortgage REIT with over $70 billion in assets. Like AGNC, it offers an extraordinary yield but with elevated risk. The dividend has been reduced multiple times over the past decade. Suitable only for investors who understand interest rate risk and want high current income.
Growth + value combo
Share Price
$14.50
Dividend Yield
1.4%
Annual Dividend
$0.20
Payout Ratio
15%
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. The dividend was recently reinstated, signaling management confidence. With a tiny 15% payout ratio, there is enormous room for dividend growth. Infrastructure spending in 2026 provides a demand catalyst.
Best-in-class regional bank
Share Price
$18.90
Dividend Yield
4.2%
Annual Dividend
$1.96
Payout Ratio
45%
U.S. Bancorp consistently earns the highest return on equity among large regional banks. The dividend has grown at 5.5% annually for 13 consecutive years. Conservative management navigated the 2023 regional banking crisis without cutting the dividend. At under $20, this is a quality bank at a value price.
Monthly dividend
Share Price
$18.50
Dividend Yield
4.8%
Annual Dividend
$1.47
Payout Ratio
70%
STAG Industrial is a monthly-paying REIT that owns single-tenant industrial warehouses. E-commerce growth drives demand for warehouse space. The company has raised its dividend annually since its IPO and pays investors every month, making it ideal for income investors who want regular cash flow.
Deeply discounted
Share Price
$4.50
Dividend Yield
4.4%
Annual Dividend
$0.20
Payout Ratio
40%
Medical Properties Trust owns hospital real estate leased to healthcare operators. The stock has fallen significantly due to tenant issues, but the dividend has been adjusted to a sustainable level. For contrarian investors, this deeply discounted REIT offers recovery potential with income.
Real estate value
Share Price
$16.80
Dividend Yield
4.2%
Annual Dividend
$0.67
Payout Ratio
35%
Macy's pays an attractive dividend backed by strong free cash flow and valuable real estate holdings. The company owns its flagship Herald Square and Union Square locations. While traditional retail faces challenges, the combination of income, real estate value, and a 35% payout ratio provides a margin of safety.
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Here is how you could invest $1,000 across these affordable dividend payers, balancing yield with safety.
Total Invested: $997 | Annual Income: $73.06
Blended Yield: 7.3% | 8 stocks across 7 sectors
AGNC and NLY yield 13-14%, but mortgage REITs have historically reduced their dividends over time. Their yields look sustainable in the short term but the underlying book value can erode. Limit mortgage REIT exposure to 5-10% of your portfolio.
Some stocks are under $20 because the business is struggling. Always check the payout ratio, free cash flow, and debt levels before buying a cheap stock for its dividend. A $5 stock that cuts its dividend will lose far more than the income it pays.
Quality matters more than price. A $500 stock like Broadcom with an 18% dividend growth rate will outperform a $5 stock with a declining dividend every time. Use fractional shares to buy the best companies regardless of price. The stocks on this list are under $20 AND quality picks, giving you the best of both worlds.
With a 5% average yield from these stocks, $500 generates about $25 per year in dividends. That's about $2 per month. With DRIP reinvesting and $100 monthly additions, your annual dividend income grows to roughly $200 after just 3 years. Small amounts compound into meaningful income streams over time.
Generally, yes. Lower-priced stocks tend to be smaller companies, turnaround stories, or companies facing challenges. AT&T and U.S. Bancorp are exceptions as large-cap quality names that happen to trade at lower prices. Diversify across at least 5-8 positions to reduce the impact of any single stock underperforming.
If you are building wealth, always reinvest. DRIP (Dividend Reinvestment Plans) automatically buy more shares with each dividend payment, compounding your returns. On a $1,000 portfolio yielding 7%, reinvesting for 20 years grows your position to roughly $3,870 versus $2,400 without reinvestment.
With fractional shares, you can start with as little as $1. To build a meaningful diversified portfolio of whole shares at these under-$20 prices, $200-$500 is enough to buy 3-5 different stocks. The key is to start investing consistently, even if amounts are small. Time in the market is the single biggest factor in dividend investing success.