The 4 Best Dividend Stocks Under $5 for 2020

Dividend stocks are popular with income investors who enjoy received a cash payout every 3 months from several companies. This is one of my main investment strategies I use to generate passive income every month via dividends.

If you are looking for cheap dividend stocks under $5, then here is a list of some of the best ones we found.

Best Dividend Stocks Under $5 Overview

Company Annual Dividend Yield
Colony Capital $0.44 9.42%
Jollibee $0.05 1.24%
Washington Prime Group $1.00 26.88%
B2Gold $0.04  

Colony Capital (CLNY)

Annual dividend (yield): $0.44 (9.42%)

Colony Capital is a diverisified health care REIT that operates properties with a major focus on the senior health care industry.

Senior healthcare is posied to be a major growth industry as more baby boomers retire from work and reach their golden years.

The REIT sector as a whole hasn’t done well because investors are pouring funds into tech stocks. However, Colony Capital easily covers their dividend via FFO. The dividend is $0.11 per quarter, yielding an impressive 9.42%.

If you’re looking for a diversified REIT stock trading under $5, then Colony Capital is worth a look.

Jollibee (JBFCF)

Jollibee is the biggest fast food chain in Asia and has set up an aggressive growth plan in North America recently. The company plans to open 150 stores total in the region because consumer demand is through the roof.

I’ve personally eaten at Jollibee and the food tastes delicious. Known as the “McDonald’s of Asia”, the company also operates several other brands including ChowKing, Greenwich Pizza, The Coffee Bean, and Red Ribbon. They are the dominate restaurant player in SE Asia but shares have fallen recently ever since their acquisition of The Coffee Bean.

Shares look pretty cheap plus the company pays a dividend of 1.28%.

Washington Prime Group (WPG)

This REIT has taken a massive beating over the past year with a major drop in stock price but management plans to maintain the dividend via AFFO earnings. One of the reasons for the extremely high yield is because the share price dropped so much.

AFFO safely covers the dividend even though multiple REIT experts warned investors of a potential dividend cut. I own shares here and enjoy the massive yield but will exit my position in case of a dividend cut.

B2Gold (BTG)

B2Gold, a Canadian based gold miner, operates 5 mines across the world and recently hit record gold production in q3 2019. As gold prices continue to rise, B2gold is in a good position to profit from the rising prices plus they recently announced their first ever quarterly dividend of 1 cent per share.

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