I’m always looking for the best dividend stocks to buy, and dividend stocks under $25 are all the more tempting.
The best dividend stocks do well in the stock market. They also reward investors who hold them by paying a monthly or quarterly dividend.
With the stock market struggling so far in 2022, dividend-paying stocks have a little more importance. Even if the market is down, your dividends can help cushion those losses and help you sleep better at night. The dividend ratio will increase even if the stock price drops enough.
There are plenty of great dividend stocks under $25, but I used my portfolio binder to perfect the best names. Here are seven of the best low-cost dividend stocks you can buy in September.
|NGVC||Natural Grocers by Vitamin Cottage||$13.61|
|SAMG||Silvercrest Asset Management Group||$17.99|
|SJT||San Juan Basin Royalty Trust||$11.04|
|XANDER||Alexander and Baudouin||$18.50|
BCP Bancorp (BCBP)
BCP Bancorp (NASDAQ:BCBPlisten)) is a New Jersey-based regional bank with 29 locations in New Jersey and New York. With interest rates rising this year, the BCP and other banks are better positioned to profit from mortgages, auto loans and other lending activities.
Second-quarter earnings were mixed, with the company reporting revenue of $27.43 million, which missed analysts’ estimates of $26.44 million. Earnings of 58 cents per share, however, beat analysts’ estimates of 2 cents per share.
On top of that, BCP pays a quarterly dividend of 16 cents per share, a payout ratio of 3.6%. Not bad at all for one of the best dividend stocks under $25. When you factor in that BCBP is up 15% so far this year, it’s easy to see why it gets an “A” rating in the Portfolio binder.
Natural Grocers by Vitamin Cottage (NGVC)
It will not surprise you to learn that Natural Grocers by Vitamin Cottage (NYSE:NGVC) operates grocery stores specializing in organic and natural foods. It has 162 locations in 20 states.
But you might be surprised by the stock’s performance.
NGVC had a year of ups and downs, rising more than 66% this spring as inflation pushed food prices higher, then lost it all as momentum waned and that the company’s profit margins were squeezed by higher transportation costs and lower product margins.
Natural Grocers says its store expenses as a percentage of net sales rose from 22.1% to 22.6% in the third quarter and gross margin fell 10 basis points. On the positive side, net sales in the third quarter were up 3% from a year ago, and average deal size was up 2.7%.
For 2022, the stock is mostly flat, posting just a 1% gain, but that’s way better than the broader market. NGVC also pays an annual dividend of 40 cents, or an expense ratio of 2.9%, making it one of the best dividend-paying stocks under $25 in the grocery industry.
Natural Grocers earns a “B” rating in the portfolio binder.
Silvercrest Asset Management Group (SAMG)
A New York-based wealth management firm, Silvercrest Asset Management Group (NASDAQ:SAMG) provides financial services and family office services to high-income families and institutional investors.
Overall SAMG stock is having a great year – up 5% vs down 24% Nasdaq Compound. Second-quarter earnings were mixed, with revenue of $32.17 million beating analysts’ estimates of $31.63 million. But earnings per share of 39 cents were below Wall Street expectations for 41 cents.
The dividend will also get you noticed – at 18 cents per quarter, SAMG has a dividend ratio of 4%.
Silvercrest stock has a “B” rating in the portfolio binder.
San Juan Basin Royalty Trust (SJT)
I have already written about San Juan Basin Royalty Trust (NYSE:SJT), and I’m still a huge fan. The trust holds royalty interests in oil and gas properties in the San Juan Basin of New Mexico.
The company is paying distributions that have increased this year as oil prices have risen, which can be very attractive when oil prices are high, as they have been recently. And as gas prices have fallen in recent weeks, shares of SJT have also fallen. But even though the San Juan Basin stock is down 25% in the past three weeks, it still shows a 77% gain in 2022.
First-quarter earnings included revenue of $14.89 million, an increase of 81.3% from a year ago. But the big advantage of SJT stock is the gigantic dividend – paid on a monthly basis, the stock currently earns an average of $2.20 per share – a payout ratio of over 20%.
SJT stock has an “A” rating in the portfolio binder.
Trinity Capital (TRIN)
Trinity Capital (NASDAQ:TRIN) is a specialty lending company that works with growing companies, venture-backed companies, and companies that have institutional equity investors.
It has funded over 200 companies and claims to have $966 million in assets under management.
Second-quarter earnings included revenue of $33.46 million, which beat analysts’ expectations of $31.06 million. Earnings per share of 48 cents came just short of analysts’ expectations of 49 cents per share.
On the other hand, the TRIN share is down 16% over the year. But the company has an exceptional dividend yield of 11.5%, or $1.68 per year.
The shares of Trinity Capital have a “B” rating in the Portfolio binder.
NL Industries (NL)
NL Industries (NYSE:NL) is a holding company that holds a 30% interest in Chronos in the world (NYSE:KRO), a chemical company. And he owns an 87% stake in a manufacturer of technical components, CompX International (NYSEAMERICAN:CIX).
Interestingly, these two positions have a combined value of $673 million and NL Industries has a market cap of just $414.4 million. So there is more value in the company than is reflected in the stock price.
Second-quarter earnings included revenue of $41.68 million, up nearly 15% from a year ago.
NL’s stock is up 15% so far this year and its dividend ratio is 3.3%. It has an “A” grade in the portfolio binder.
Alexander and Baudouin (ALEX)
Alexander and Baudouin (NYSE:XANDER) is a real estate investment trust (REITs) which traces its history for more than 150 years.
She got her start in the sugarcane business in Hawaii. Today it is a leading commercial real estate owner with ownership of 79 properties. And it remains in growth mode – the company has pledged to spend $50-75 million a year buying properties in Hawaii.
As the real estate market fell in 2022, ALEX stock fell over 25%. But that’s not necessarily a dealbreaker for REITs. REITs are a special class of investment that enjoy preferential tax treatment in exchange for returning 90% of taxable income to shareholders.
That’s why Alexander & Baldwin has a dividend ratio of 4.7%, or an annual payout of 88 cents per share.
This helps propel this REIT to a “B” rating in the Portfolio binder.
As of the date of publication, neither Louis Navellier nor the member of the InvestorPlace research staff principally responsible for this article holds (directly or indirectly) any position in the securities mentioned in this article.