Financial services company B. Riley Financial topped the list of dividend-paying stocks under $25 per share this month, as its share price fell and the forward dividend yield hit 18.8%.

Dividend stocks provide investors with passive income, which helps to offset losses during an economic downturn. Below, we look at the top four dividend stocks under $25 listed on either the New York Stock Exchange (NYSE) or Nasdaq as measured by forward dividend yield, excluding companies with payout ratios that are either negative or over 100%. The stat🦹istics below were current as of Dec. 6, 2023.

澳洲幸运5官方开奖结果体彩网:B. Riley Financial Inc. (RILY)

• Forward Dividend Yield: 18.8%
• Sector/Industry: Finance
• Price: $22.30
  
• Market Cap: $0.7 billion
• 1-Year Total Return: -49%

B. Riley Financial is a financial services company with a customer base that includes corporations and i🃏ndividual clients located throughout Europe, Australia, and the U.S. The company operates through multiple segments, including wealth management, consulting, liquidation, consumer services, and investment banking.

B. Riley Financial reported third-quarter earnings for 2023 and declared a quarterly dividend payout on Nov. 8. The company's net loss for the quarter was $76 million, and their total revenue grew 48% year-over-year. A quarterly dividend of $1.00 per share was paid to investors on Nov. 30.

澳洲幸运5官方开奖结果体彩网:Frontline PLC (FRO)

• Forward Dividend Yield: 17.8%
• Sector/Industry: Energy
• Price: $19.19
• Market Cap: $4.3 billion
• 1-Year Total Return: 39%

Frontline PLC is based in Cyprus and operates as an ene𓆏rgy company that engages in the marine transport of crude oil products globally with a fleet of roughly 70 oil tankers.

In September, Frontline announced the acquisition of 24 VLCCs (Very Large Crude Carriers) from European oil transport company Euronav N.V. (EURN). The deal was valued at $2.4 billion. The company declared a third-quarter dividend of $0.30 per share payable to shareholders on Dec. 29, which is a 63% decrease compared to their second-quarter dividend payment because the energy market has experienced a fairly steep downturn this year.

澳洲幸运5官方开奖结果体彩网:Alliance Resource Pꦿartners L.P. (ARLP)

• Forward Dividend Yield: 13.7%
• Sector/Industry: Energy
• Price: $19.80
• Market Cap: $2.5 billion
• 1-Year Total Return: -11%

Alliance Resources Partners primar💖ily produces coal for use in the utilities and industrial sectors. The company also has royalty interests in oil, gas, and coal properties. Their energy operations are located in the Delaware, Utica, Williston, Marcellus, Illinois, and Appalachian basins.

On Oct. 27, third-quarter earnings were released, which showed an 8% decline in net income. The company's total revenue increased by 1% compared to the previous year. Alliance Resources Partners announced a dividend payment of $0.70 per share for the third quarter, payable on Nov. 14.

澳洲幸运5官方开奖结果体彩网:FS KKR Capital Corp. (FSK)

• Forward Dividend Yield: 12.8%
• Sector/Industry: Finance
• Price: $19.99
• Market Cap: $5.6 billion
• 1-Year Total Return: 3%

FS KKR Capital is a company that invests in debt securities, such as senior secured debt, subordinated loans, and mezzanine loans. They🍸 provide U.S. companies with financing options🔯. Their portfolio includes roughly 200 companies, primarily within the healthcare, software, and insurance industries.

On Nov. 6, FS KKR Capital announced their third-quarter results, which stated that net income rose by 25%, and their total revenue grew by 14% year-over-year. The company also declared a quarterly dividend of $0.70 per share for the third quarter, payable to investors on Jan. 3. The board of directors has authorized a 澳洲幸运5官方开奖结果体彩网:special dividend of $0.10 per share that will be paid in two installments of $0.05 in 2024.

How We Selected the Best Dividend St𝕴ocks Beati🌱ng Inflation

When choosing companies, we looked for high dividend-yielding stocks that trade under $25 per share and are listed on the NYSE or NASDAQ. We also consider the potential for future share price appreciation and choose companies with a sustainable 澳洲幸运5官方开奖结果体彩网:payout ratio to avoid 澳洲幸运5官方开奖结果体彩网:high-risk dividend companies.

The inflation rate was 3.1% in November, and these companies all have a forward dividend yield surpassing that. The forward dividend yield is calculated by dividin🍸g the annual dividend per share by the current share price.

What Should Investors Look 🗹for in Dividend Stocks?

Dividend yield

The dividend yield reflects the annual value of dividends received relative to a security's per-share market value. You can calculate this by dividing the annual dividend per share by the current stock price, though most brokerage platforms and financial news sites publish such information.

For example, if Company ABC issues a dividend of $10 annually with a current share price of $100, it has a dividend yield of 10% ($10 / $100 = 10%). Investors pursuing high-yielding stocks can start by screening for issues with a dividend yield above a certain percentage. Keep in mind that dividend yield is only one of many metrics to consider before investing.

Dividend payout ratio

The 澳洲幸运5官方开奖结果体彩网:Dividend payout ratio (DPR) gauges how much of a company's earnings are paid to shareholders. Investors calculate the ratio by dividing total dividends by net income. This, too, can be found on financial s🀅ites and other platforms.

For instance, if Company ABC reports a net income of $50,000 and pays $15,000 in annual dividends, it would have a DRP of 30% ($15,000 / $50,000 = 30%). That is, the company pays 30% of its earnings to shareholders. Typically, a company that issues less than 50% of its net earnings in dividends is considered stable and has the potential for sustainable long-term earnings growth.

Dividend coverage ratio 

This measures the number of times a company can pay dividends to its shareholders. Investors calculate the dividend coverage ratio by dividing a company's 澳洲幸运5官方开奖结果体彩网:earnings per share by its annual dividend per share.

How to Pick the Right Dividend Companies

澳洲幸运5官方开奖结果体彩网:Dividend investing is a method of accumulating wealth and can work as a hedge against inflation. When dividend investing, 澳洲幸运5官方开奖结果体彩网:investors should look for long-term growth stocks that have strong financials over a number of years and offer a sustainable dividend payout.

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As of the date this article was written, the author does not own any of the above stocks.