Investors lovedividend stocks, especially those with high yields, because they provide a substantial passive income stream and offer significant total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. At 24/7 Wall St., we consistently emphasize the potential of total return to our readers. It is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return refers to the collective increase in a stock’s value, including dividends.
24/7 Wall St. Key Points:
- With over 12,000 publicly traded stocks, it is easy to lose track of some companies, even if they are very well known.
- With interest rates likely heading lower, these five mystery companies should see some investor interest the rest of 2025 and into next year.
- Stocks trading under $10 allow investors the ability to put together a bigger position, which ultimately could lead to higher profits and total return.
- Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)
We decided toscreen our 24/7 Wall St. low-priced dividend stock database, looking for companies that yield 10% or more but are always forgotten by growth and income investors. Five stocks have caught our attention, and once our readers realize they’ve also overlooked them, it might be time to take a closer look. While not suited for everybody, those trying to build strong passive income streams can do exceptionally well with some of these top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can employ a barbell approach to generate substantial passive income streams.
Why do we cover high-yield dividend stocks?
Since 1926,dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
AGNC Investment
AGNC Investment Corp
NASDAQ:AGNC$10.02▲ $1.14(11.39%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−
Previous Close$10.01Market Cap10.55BDay's Range$9.95 - $10.0552wk Range$7.27 - $10.31Volume15.62MP/E Ratio33.40Gross Margin76.20%Dividend Yield14.40%ExchangeNASDAQAGNC InvestmentCorp. (NASDAQ: AGNC) provides private capital to the U.S. housing market, enhancing liquidity in the residential real estate mortgage markets and, in turn, facilitating home ownership in the United States. This company has paid a solid monthly dividend, currently yielding 14.30%, for years.
The companyinvests primarily in agency residential mortgage-backed securities (Agency RMBS) on a leveraged basis.
These investmentsconsist of residential mortgage pass-through securities and collateralized mortgage obligations for which a U.S. government-sponsored enterprise guarantees the principal and interest payments.
AGNC buysdebt from the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Together, Fannie Mae and Freddie Mac are known as the GSEs, or government-sponsored enterprises. Alternatively, AGNC may purchase debt from a U.S. government agency, such as the Government National Mortgage Association (Ginnie Mae).
Barings BDC
Barings BDC Inc
NYSE:BBDC$8.76▲ $0.13(1.43%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−
Previous Close$8.78Market Cap909.63MDay's Range$8.70 - $8.9752wk Range$7.38 - $10.40Volume539,103P/E Ratio9.11Gross Margin35.70%Dividend Yield12.40%ExchangeNYSEBarings BDCInc. (NYSE: BBDC) primarily makes debt investments in middle-market companies. This business development company (BDC) is a leader in its industry and pays a substantial 12.10% dividend. It is a publicly traded, externally managed investment company elected to be treated as a BDC under the Investment Company Act of 1940.
It seeksto invest primarily in:
- Senior secured loans
- First lien debt
- Unitranche
- Second lien debt
- Subordinated debt
- Equity co-investments
- Senior secured private debt investments in private middle-market companies operating across various industries
The companyspecializes in:
- Mezzanine
- Leveraged buyouts
- Management buyouts
- ESOPs
- Change of control transactions
- Acquisition financings
- Growth financing
- Recapitalizations in lower-middle market, mature, and later-stage companies
Barings BDCinvests in manufacturing and distribution, business services and technology, transportation and logistics, and consumer products and services. It invests in the United States and companies with EBITDA of $10 million to $75 million, typically in private equity sponsor-backed investments.
The Bank ofAmerica price target is set at $10.
Hooker Furnishings
Hooker Furniture Corporation
NASDAQ:HOFT$8.80▼ $4.02(45.70%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−
Previous Close$8.63Market Cap93.53MDay's Range$8.64 - $9.2052wk Range$7.03 - $18.35Volume20,743P/E RatioN/AGross Margin-3.40%Dividend Yield10.30%ExchangeNASDAQWhile wayoff the radar, this company is the largest supplier of case goods and upholstery in the U.S., and it pays a solid 9.23% dividend. Hooker Furnishings Corp. (NASDAQ: HOFT) is a designer, marketer, and importer of case goods (wooden and metal furniture), leather furniture, fabric-upholstered furniture, lighting, accessories, and home decor for the residential, hospitality, and contract markets.
Its segmentsinclude:
- Hooker Branded
- Home Meridian
- Domestic Upholstery
The HookerBranded segment, which includes two businesses:
- Hooker Casegoods, which covers a range of design categories and includes home entertainment, home office, accent, dining, and bedroom furniture in the upper-medium price points sold under the Hooker Furniture brand.
- Hooker Upholstery, which includes imported upholstered furniture targeted at the upper-medium price range.
The HomeMeridian segment includes Pulaski Furniture, Samuel Lawrence Furniture, Prime Resources International, and Samuel Lawrence Hospitality.
The DomesticUpholstery segment includes Bradington-Young, HF Custom, Shenandoah Furniture, and Sunset West operations.
Huntsman
Loading stock data...Like manychemical companies, this stock has had a challenging year; however, it appears poised for a rebound with a 10.70% dividend yield. Huntsman Corp. (NYSE: HUN) is a manufacturer of diversified organic chemical products.
It operatesthrough three segments:
- Polyurethanes
- Performance Products
- Advanced Materials
The Polyurethanesproduct segment includes methylene diphenyl diisocyanate, polyols, and thermoplastic polyurethane products.
The PerformanceProducts segment is engaged in the manufacturing and sale of amines and maleic anhydride, serving a variety of consumer and industrial end markets.
Huntsman’sAdvanced Materials segment includes technologically advanced epoxy, phenoxy, acrylic, polyurethane, mercaptan, and acrylonitrile butadiene-based polymer products as well as carbon nanomaterials.
The company’sproducts comprise different chemicals and chemical formulations, which it markets globally to a wide range of consumers, primarily industrial and building product manufacturers. Its products are used in a range of applications, including adhesives, aerospace, automotive, coatings, construction, and others.
Western Union
Western Union Co
NYSE:WU$8.16▼ $2.00(24.48%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−
Previous Close$8.28Market Cap2.63BDay's Range$8.14 - $8.3152wk Range$7.67 - $11.05Volume7.35MP/E Ratio3.08Gross Margin21.80%Dividend Yield11.80%ExchangeNYSEWestern UnionCo. (NYSE: WU) is a multinational financial services corporation based in the United States. While the demand for telegrams is long gone, the demand to transfer money is not, and this famous company has grown as a result. It pays a strong 11.70% dividend and is a provider of cross-border, cross-currency money movement, payments, and digital financial services, empowering consumers, businesses, financial institutions, and governments.
Its ConsumerMoney Transfer segment facilitates money transfers, which are primarily sent from its retail agents and owned locations worldwide, as well as through websites and mobile devices. Its money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers.
The ConsumerServices segment includes the company’s bill payment services, money order services, retail foreign exchange services, media network, prepaid cards, lending partnerships, and digital wallets. The company provides its services primarily through a network of agent locations in more than 200 countries and territories.
Four Stocks That Yield 12% and Higher Are Passive Income Kings