In this article, we will take a look at some of the best dividend stocks under $20.
Although dividend growth continued to slow during the second quarter, there are some positive signs for what may come next. According to S&P Dow Jones Indices, the net change in dividends for U.S. common stocks rose by $7.4 billion in the second quarter of 2025. This figure is much lower than the $16 billion increase seen in the same quarter last year and the $15.3 billion gain recorded in the first quarter of this year. The firm suggested that economic uncertainty may have led companies to be more cautious with dividend hikes.
However, once there is more clarity around economic policy, businesses may feel more confident adjusting their strategies, which could include a stronger focus on dividends. Howard Silverblatt, a senior index analyst at S&P Dow Jones Indices, expects that dividend growth could outperform historical averages in the second half of 2025. He made the following statement:
“Q3 is expected to start out with an improvement from big banks as they continue to increase their dividends, helped by the Fed’s recent positive stress test results; the third quarter has the potential to set a new quarterly dividend payment record. For 2025, the S&P 500 is expected to post a record payment, posting a 6% increase in dividend payments.”
Daniel Peris, a senior portfolio manager at Federated Hermes and author of The Ownership Dividend, told CNBC last year that he expects a significant shift in the market as dividends regain popularity. He noted that while the number of companies paying dividends is currently lower, he believes that over time it will return to much higher levels. For now, he pointed out that investors still have many dividend-paying opportunities to choose from. Given that, we will take a look at some of the best dividend stocks under $20.
Our Methodology:
For this article, we used a Finviz stock screener and identified stocks with share prices below $20, as of July 18. From that list, we picked dividend stocks with stable dividend histories and solid yields. The stocks are ranked according to their share prices, as recorded on July 18.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13. KeyCorp (NYSE:KEY)
Share Price as of July 18: $18.50
KeyCorp (NYSE:KEY) is among the best dividend stocks under $20. The company reported strong earnings in the first quarter of 2025. It posted a 16% increase in revenue compared to the same period last year, while expenses remained largely unchanged. This resulted in both absolute and fee-based positive operating leverage on a year-over-year basis. On a sequential basis, net interest income rose by 4%, and the net interest margin improved by 17 basis points, reaching 2.58%.
These strong financial results reflected ongoing momentum with both existing clients and new prospects. Client deposits grew by 4% compared to the previous year, and deposit betas showed continued improvement. Commercial loans increased by $1.2 billion since the end of the year. KeyCorp (NYSE:KEY) also continued to make solid progress across its strategic, fee-generating segments, including wealth management, commercial payments, and investment banking.
KeyCorp (NYSE:KEY) has a strong dividend policy as the company has paid uninterrupted dividends to shareholders since 1985. Currently, it offers a quarterly dividend of $0.205 per share and has a dividend yield of 4.43%, as of July 21.
12. Energy Transfer LP (NYSE:ET)
Share Price as of July 18: $17.47
After becoming financially stretched during its previous expansion phase, Energy Transfer LP (NYSE:ET) took steps in recent years to strengthen its balance sheet. In 2020, the company reduced its distribution to lower its debt levels and has since focused on repaying debt and funding most of its growth using free cash flow.
Approximately 90% of Energy Transfer LP (NYSE:ET)’s EBITDA comes from fee-based services, shielding it from fluctuations in commodity prices. A significant portion of its contracts are structured as take-or-pay agreements, ensuring customers make payments regardless of actual usage. This model generates reliable, recurring cash flow, which helps sustain both its distribution and future growth initiatives.
In the most recent quarter, Energy Transfer LP (NYSE:ET) reported distributable cash flow of $2.1 billion. The company offers a quarterly dividend of $0.3275 per share and has a dividend yield of 7.50%, as of July 21. It is among the best dividend stocks under $20.
11. Flowers Foods, Inc. (NYSE:FLO)
Share Price as of July 18: $15.42
Flowers Foods, Inc. (NYSE:FLO) is one of the best dividend stocks under $20. In May, the company declared a 3.1% hike in its quarterly dividend to $0.2475 per share. The recent dividend marks its 91st consecutive quarterly payment and extends its streak of annual dividend increases to 23 years, underscoring a strong and reliable history of consistent dividend growth.
Flowers Foods, Inc. (NYSE:FLO) also reported its financial results for the first quarter of 2025 along with the announcement. Operating cash flow showed solid growth, increasing by $30.5 million to a total of $135.6 million. During this time, the company paid out $52.3 million in dividends, which was $1.2 million higher than the previous quarter. These figures reflect ongoing strength in the company’s earnings and its commitment to rewarding shareholders.
Flowers Foods, Inc. (NYSE:FLO) also highlighted that the acquisition of Simple Mills was finalized and added $24.3 million to net sales. The deal resulted in a net loss of $4.2 million, which included interest expenses related to the acquisition funding and amortization of intangible assets. It contributed $3.6 million to adjusted EBITDA and had a diluted earnings per share impact of negative $0.02.
Flowers Foods, Inc. (NYSE:FLO) is one of the top producers of packaged bakery goods in the United States. It operates bakeries across the country that produce a wide range of baked items. The company’s brand lineup features popular names like Nature’s Own, Dave’s Killer Bread, Canyon Bakehouse, Simple Mills, Wonder, and Tastykake.
