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.
10. Guess?, Inc. (NYSE:GES)
Share Price as of July 18: $12.70
Guess?, Inc. (NYSE:GES) is one of the best dividend stocks under $20. The company recently opened its first Asian flagship store for the Guess Jeans brand in Tokyo, marking a key step in its international expansion efforts. Located in the lively Jingumae district near Omotesando Hills, the four-story store was designed by Hiroshi Fujiwara of Fragment Design and showcases a mix of Japanese and Californian architectural styles.
Guess?, Inc. (NYSE:GES) reported strong earnings in the first quarter of 2025. The company posted revenue of $647.8 million, which showed a 9.4% growth from the same period last year. The revenue also beat analysts’ estimates by $16.44 million. The revenue reflects the smooth integration of rag & bone and ongoing strength in the company’s wholesale operations throughout Europe and the Americas.
In addition, Guess?, Inc. (NYSE:GES) is one of the strongest dividend payers. The company has rewarded its shareholders with uninterrupted dividends for the past 18 years. In the most recent quarter, the company reported an operating cash flow of $125 million and its free cash flow came in at $55 million. Currently, it offers a quarterly dividend of $0.30 per share and has a dividend yield of 9.27%, as of July 21.
9. Dynex Capital, Inc. (NYSE:DX)
Share Price as of July 18: $12.53
Dynex Capital, Inc. (NYSE:DX) recently declared its Q2 2025 earnings. Its strategy of selectively raising and allocating capital toward attractive mortgage-backed securities markets places the company in a strong position to deliver solid returns to its shareholders. The company remains focused on investing in highly liquid, transparent, and easily valued securities, which supports its ability to manage risk effectively and maintain stability through different interest rate environments and economic conditions.
Dynex Capital, Inc. (NYSE:DX) reported a net interest income of $23.1 million, which showed a 35% growth from the previous quarter. The company’s cash position also came in strong. It ended the quarter with $387.5 million available in cash and cash equivalents, and its total assets amounted to $11.3 billion. The company generated $282 million in equity capital, after accounting for issuance expenses, by issuing common stock through its at-the-market (ATM) program. It also acquired $1.9 billion worth of Agency residential mortgage-backed securities (RMBS), $364 million in Agency commercial mortgage-backed securities (CMBS), and boosted its investments in TBAs by $953 million.
Dynex Capital, Inc. (NYSE:DX) is a popular dividend stock under $20 as the company pays monthly dividends to shareholders. Currently, it pays a monthly dividend of $0.17 per share and has an attractive dividend yield of 16.25%, as of July 21. The company has been making regular dividend payments to shareholders since 2008.
8. Macy’s, Inc. (NYSE:M)
Share Price as of July 18: $11.95
Macy’s, Inc. (NYSE:M) is one of the best dividend stocks under $20. The company experienced some growth in the years immediately after the COVID-19 pandemic, but its performance has slowed more recently, with revenue slipping over the past two years. For 2025, the company’s first-quarter results topped expectations, though the broader forecast fell short of market hopes. Adjusted earnings were reported at $0.16 per share, slightly ahead of the projected $0.14, while total revenue reached $4.60 billion, exceeding the anticipated $4.50 billion.
Macy’s, Inc. (NYSE:M) reported a 2.0% decline in comparable sales on an owned basis and a 1.2% drop on an owned-plus-licensed-plus-marketplace basis. Despite the declines, the results exceeded the company’s earlier guidance, supported by stronger-than-anticipated performance across all three of its nameplates. The company also made progress on its Bold New Chapter strategy during the quarter, expanding key initiatives that enhanced the customer experience and played a role in the better-than-expected results.
Macy’s, Inc. (NYSE:M) has remained committed to its shareholder obligation. In the most recent quarter, the company returned $152 million to shareholders, including $51 million in dividends. In addition, it has raised its dividends for four consecutive years. It offers a quarterly dividend of $0.1824 per share and has a dividend yield of 5.99%, as of July 21.
7. Arbor Realty Trust, Inc. (NYSE:ABR)
Share Price as of July 18: $11.21
Arbor Realty Trust, Inc. (NYSE:ABR) is among the best dividend stocks under $20. ABR is a mortgage REIT centered on multifamily properties. It had maintained a pattern of steady dividend increases until mid-2023. The company halted further hikes as rising interest rates started to impact the multifamily sector and its overall earnings. At the time of its last dividend increase in July 2023, the payout ratio stood at 75% of distributable earnings, but that number has since climbed to nearly 150%.
Earnings weakened further moving into 2025. For the first quarter, Arbor Realty Trust, Inc. (NYSE:ABR) posted $0.28 per share in distributable earnings, or $0.31 per share when adjusted for a $7.1 million loss from the sale of two properties. As a result, the dividend was trimmed to $0.30 per share. If the earnings trend continues downward, another reduction could be considered. As of July 21, the stock has a dividend yield of 10.62%.
Even so, Arbor Realty Trust, Inc. (NYSE:ABR) isn’t without potential support. In addition to its primary focus on relatively low-risk multifamily assets, the company also earns revenue through loan origination and servicing, single-family rental operations, and commercial real estate holdings. This diversified model can provide some stability during different stages of the economic cycle.
6. Ford Motor Company (NYSE:F)
Share Price as of July 18: $11.16
Ford Motor Company (NYSE:F) is one of the best dividend stocks under $20. The company has been aiming to revitalize its well-known brand through its Ford+ growth strategy, introduced a few years ago. This plan brings together vehicles with software and related services while centering the company’s focus on three main segments: Ford Blue, which covers traditional gas-powered and hybrid models; Ford Model e, which focuses on electric vehicles; and Ford Pro, which serves the commercial vehicle market.
In the first quarter of 2025, Ford Motor Company (NYSE:F) reported revenue of $40.7 billion, which showed a 5% decline from the same period last year. However, the revenue beat analysts’ estimates by $1.6 billion. The company noted that its solid balance sheet, which includes $27 billion in cash and $45 billion in total liquidity, offers the flexibility needed to pursue profitable growth opportunities while also navigating the current conditions in the industry.
Ford Motor Company (NYSE:F)’s cash position also remained stable during the quarter. The company generated an operating cash flow of $3.7 billion, up 2.3% from the prior-year quarter. It is a strong dividend payer and in recent years, it has made multiple special dividend payments. These additional distributions have supported its objective of returning 40% to 50% of its adjusted free cash flow to shareholders each year. Currently, the company offers a quarterly dividend of $0.15 per share and has a dividend yield of 5.29%, as of July 21.
5. American Eagle Outfitters, Inc. (NYSE:AEO)
Share Price as of July 18: $9.94
American Eagle Outfitters, Inc. (NYSE:AEO) is emerging as a standout choice in the consumer discretionary sector, particularly as indications suggest a potential resurgence in consumer spending. Although much of the spotlight has been on faster-growing retailers like Abercrombie & Fitch, AEO represents a steadier alternative — a well-managed, expanding apparel company currently trading near the lower end of its typical valuation range.
American Eagle Outfitters, Inc. (NYSE:AEO) reported mixed earnings in the first quarter of 2025. The company’s revenue came in at $1.09 billion, down 4.7% on a YoY basis. Comparable sales at Aerie dropped by 4%, while American Eagle saw a 2% decline. Gross profit totaled $322 million, with the gross margin falling to 29.6% from 40.6% the previous year. Selling, general, and administrative expenses increased by 2% to $339 million, resulting in a 190 basis point decline in efficiency as a percentage of sales. While compensation and incentive costs decreased, higher advertising expenses offset those savings.
American Eagle Outfitters, Inc. (NYSE:AEO) also posted a solid cash position. The company ended the quarter with over $87.5 million in cash and cash equivalents. During the quarter, it also returned $22 million to shareholders through dividends. The company currently offers a quarterly dividend of $0.125 per share and has a dividend yield of 5.04%, as of July 21.
4. Barings BDC, Inc. (NYSE:BBDC)
Share Price as of July 18: $9.58
Barings BDC, Inc. (NYSE:BBDC) is among the best dividend stocks under $20. The company reported mixed earnings in the first quarter of 2025, with revenues coming in at $64.4 million. The revenue showed a 7.7% YoY decline and also missed analysts’ estimates by $3.35 million. The company reported net investment income of $26.4 million, translating to $0.25 per share. In addition, there was a net increase in net assets from operations amounting to $32.6 million, or $0.31 per share.
For the quarter ending March 31, 2025, Barings BDC, Inc. (NYSE:BBDC) made 14 new investments amounting to $128.2 million and allocated an additional $78.7 million to existing portfolio companies. It saw the repayment of 10 loans totaling $66.1 million, resulting in a net realized loss of $10.2 million. Moreover, the company collected $33.9 million from principal payments and sales of portfolio assets, recognizing a net realized loss of $0.4 million. It also received $5.2 million in return of capital from joint ventures, equity holdings, and royalty rights investments.
Barings BDC, Inc. (NYSE:BBDC) is a strong dividend payer, paying uninterrupted dividends to shareholders since 2007. It offers a quarterly dividend of $0.26 per share and has a dividend yield of 10.95%, as of July 21.
3. Amcor plc (NYSE:AMCR)
Share Price as of July 18: $9.54
Amcor plc (NYSE:AMCR) is among the best dividend stocks under $20. The recent merger between Amcor and Berry Global has resulted in a dominant player in the plastic packaging industry, presenting a promising investment opportunity fueled by expected synergies and consistent growth. Amcor plc (NYSE:AMCR), an Australian firm with a strong international presence, is set to nearly double its revenue through this deal, strengthening its position in both flexible and rigid packaging. The merged company is expected to gain substantial cost savings and scale benefits, positioning it significantly ahead of its nearest competitor in terms of size.
The combined company is projected to increase its earnings per share by 15% each year through 2028, with a significant portion of that growth stemming from cost synergies that are expected to be well-executed. Amcor’s successful history with past acquisitions like Alcan and Bemis, along with Berry’s track record with RPC, adds credibility to its ability to realize these synergies.
Amcor plc (NYSE:AMCR) holds a solid dividend history. The company offers a quarterly dividend of $0.1275 per share and has a dividend yield of 5.42%, as of July 21. It is one of the best dividend stocks as the company has raised its payouts for 41 years in a row.
2. Gray Media, Inc. (NYSE:GTN)
Share Price as of July 18: $5.09
Gray Media, Inc. (NYSE:GTN) is one of the best dividend stocks under $20. The company remained focused on enhancing its local content lineup, especially in the area of professional and college sports broadcasting. Efforts were also directed toward streamlining the cost structure, reinforcing the balance sheet, and boosting overall financial flexibility.
In the first quarter of 2025, Gray Media, Inc. (NYSE:GTN)’s total revenue reached $782 million, reflecting a 5% decline compared to the same period in 2024, though it exceeded the upper end of the company’s guidance by 1%. Core advertising revenue came in at $344 million, down 8% year-over-year. This drop aligned with expectations and was largely attributed to the Super Bowl airing on 33 FOX channels in 2025 versus 54 CBS channels the previous year, as well as the impact of having one fewer selling day due to Leap Day in 2024.
Gray Media, Inc. (NYSE:GTN) reported an operating cash flow of $132 million, up from $68 million in the same period last year. The company ended the quarter with $210 million available in cash, compared with $135 million at the end of December 2024. It offers a quarterly dividend of $0.08 per share and has a dividend yield of 6.46%, as of July 21.
1. VAALCO Energy, Inc. (NYSE:EGY)
Share Price as of July 18: $3.55
In its first quarter earnings, VAALCO Energy, Inc. (NYSE:EGY) secured a new reserves-based revolving credit facility with an initial commitment of $190 million, which has the potential to expand to $300 million and is backed by select Vaalco assets. In addition, it lowered its full-year capital spending forecast by approximately 10% while maintaining its production and sales targets for the year.
VAALCO Energy, Inc. (NYSE:EGY) reported revenue of $110.3 million in the first quarter of 2025, up 10% from the same period last year. The revenue also beat analysts’ estimates by $5.19 million. The company’s sales came in near the upper end of the company’s forecast, while NRI production exceeded expectations, resulting in strong financial performance, including net income of $0.07 per diluted share and Adjusted EBITDAX of $57.0 million. VAALCO Energy remains focused on advancing its strategic goals, having achieved several milestones in the first quarter that support its plans for profitable expansion in 2025 and the years ahead.
VAALCO Energy, Inc. (NYSE:EGY) ended the quarter with nearly $41 million in cash and cash equivalents. The company’s operating cash flow came in at $32.7 million, compared with $21.8 million in the prior-year period. It offers a quarterly dividend of $0.0625 per share and has a dividend yield of 7.08%, as of July 21.
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