BOSTON (TheStreet) -- Investors who suffered through the worst August performance for stocks in nine years have turned to dividend-paying shares. Several under-$5 stocks still offer outsized dividend yields to those willing to take on additional risk.
U.S. stocks dove last month on concern of a double-dip recession. The S&P 500 slumped almost 5%. Large-cap companies, such as Dow members Coca-Cola (KO), United Technologies (UTX) and AT&T (T), offered steadier returns, buoyed by big dividends.
A handful of stocks trading at less than $5 have even higher dividend yields than those Dow members. That may prove necessary for investors who are looking on the cheap end, as September is typically the worst month of the year in terms of share-price performance.
TheStreet narrowed the vast number of dividend-paying, under-$5 stocks by including only those that trade on the New York Stock Exchange, Amex and Nasdaq, and excluding real estate investment trusts (REITs), royalty trusts and master limited partnerships (MLPs). The list is ranked from lowest yielding to highest.
Advance America, Cash Advance Centers (AEA) Company Profile: Advance America, Cash Advance Centers is a provider of cash advance services in the U.S. Dividend Yield: 7% (forward annual) Closing price: $3.62 (Sept. 10) Financial Metrics: Advance America has a price-to-book ratio of 0.99, which indicates the stock trades evenly with its book value. Analyst Consensus: Of the four analysts covering Advance America, three, or 75%, say investors should hold the stock. One research firm, Stephens Inc., has a "buy" rating on the stock. >>Find Ex-Dividend Dates With Our Dividend Calendar
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV