Story updated with note on Tasty Baking dividend suspensionBOSTON ( TheStreet) -- Investors bruised by the stock-market downturn have turned to dividend-paying shares for safety and stability. That usually means the Dow Jones Industrial Average is the beneficiary. Still, several under-$5 companies such as Chimera Investment ( CIM) offer fast growth as well as outsized dividend yields to those willing to take on greater risk. Dow members Chevron ( CVX), Coca-Cola ( KO) and Verizon ( VZ), offer steady returns through dividends. But for several stocks trading under $5, the dividend yield -- and risk -- are much higher. For long-term investors, the recent pullback has afforded a lower entry point in several high-yielding dividend stocks that trade for less than $5, including Chimera, Universal Insurance Holdings ( UVE) and Primedia ( PRM). TheStreet narrowed the vast number of dividend-paying under-$5 stocks to those with the largest annual yield, detailed on the following pages.
China Nepstar Chain Drugstore ( NPD) Company Profile: China Nepstar Chain Drugstore operates retail drugstores in the People's Republic of China. Shares are up nearly 10% this year but have fallen more than 40% in the past 12 months. Annual Dividend: 26 cents Dividend Yield: 6.2% (forward annual)
Star Bulk Carriers ( SBLK) Company Profile: Star Bulk Carriers provides worldwide transportation of drybulk commodities, including iron ore, coal, grain, cement and fertilizer. Shares are down 6.7% this year and nearly 14% over the past 12 months. Annual Dividend: 20 cents Dividend Yield: 8.2% (forward annual)
DHT Holdings ( DHT) Company Profile: DHT Holdings operates a fleet of double-hull tankers. Shares of the company are up 12% in the past year but have slipped 1.7% this year after announcing an upsizing of a common stock offering. Annual Dividend: 40 cents Dividend Yield: 9% (forward annual)
HiMax Technologies ( HIMX) Company Profile: HiMax Technologies designs semiconductors that are components of flat-panel displays. Its main products are display drivers for large-sized TFT-LCD panels. Shares are up 3.8% this year but have fallen nearly 20% over the past 12 months. Annual Dividend: 24 cents Dividend Yield: 9.6% (forward annual)
Bimini Capital Management ( BMNM) Company Profile: Bimini Capital Management is a real estate investment trust (REIT) that invests in mortgage-backed securities. The stock, which trades on the OTC Bulletin Board, is down 22% in the past year but is up 16.5% this year. Annual Dividend: 13 cents Dividend Yield: 15.2% (forward annual)