Top 5 Best Canadian Dividend Stocks Under $5: Discover affordable investments with strong dividend yields to help grow your portfolio and generate steady income from reliable Canadian companies.
Understanding how the stock market works can be pretty confusing, but we’re here to help! We’ll share with you some awesome stocks that are less than $5 and pay dividends every month! Dividends are sort of like a little thank you that companies give to their investors. Now keep in mind the prices of these stocks change so by the time you read this they may not be less than $5 any more. So, make sure you do your own research and always check the price before investing.
To help make good decisions, you can use an app called VectorVest. It’s available for iPhones and Androids too. This app will tell you when it’s best to buy or sell individual stocks as well as what trends (or patterns) are happening in the stock market as a whole so that you save money and avoid losing money.
1. MFS Intermediate High Income Fund (CIF)
This company invests in things like loans that pay interest and they try to make a lot of money for you. They also want the value of the things they invested in to go up over time.
CIF pays out a monthly dividend. The dividend yield is about 9.5% based on what you would earn in dividends if you bought CIF at today’s prices. So if you invest in CIF, you could get a check each month. To make sure they can keep paying the dividend, CIF owns many different types of bonds.
The dividend is $0.01 per share each month – but that can add up if you own a lot of shares over time!
2. Banco Bradesco SA (BBD)
Banco Bradesco is one of the biggest banks in Brazil. They provide a multitude of financial services including banking, insurance and managing assets. By investing in Banco Bradesco you are investing into the financial health of Brazil.
The stock price went down during the COVID-19 pandemic and has fallen 35% in 2024 so far. If there is nothing I find in further research that would be a opportunity to get the stock at cheaper price.
The dividend yield is around 6% and they are expected to do $0.04 of dividends next month. They have been paying dividends since 1997.
3. Oxford Square Capital (OXSQ)
Oxford Square Capital invests in debt and equity securities of technology-related companies. Our objective is to make a lot of money now, and increase the value of our investments over time.
OXSQ is best for investors who want income. They pay a high monthly dividend of 10.5%. They have a good invesment portflio that vaule around $340 million.
They have been slowly reducing their dividend over the past decade. In 2015, they paid out $1.14 per share for the year, but now they are only paying out $0.42 per year; again, this reduction might be used to help grow the company and solve other issues if you are a long-term investor.
4. PermRock Royalty Trust (PRT)
PermRock Royalty Trust (PRT) PermRock Royalty Trust owns a net profit interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from certain properties in the Permian Basin. This company pays monthly cash distributions to investors sourced from any profits it makes.
With a dividend yield of around 12%, this is one of the most lucrative options. They sell oil and natural gas and provide their shareholders with 80% of their profits.
PermRock, however, has only been paying a dividend since 2018, so it doesn’t have as lengthy of a track record as some other businesses on this list. That said, the oil and natural gas industry play an enormous part in the world we live in.
5. San Juan Basin Royalty Trust (SJT)
San Juan Basin Royalty Trust owns oil and gas properties in New Mexico, with its primary function being to pass on the revenue from these properties to the trust’s investors.
The region they operate in has some of the richest oil and natural gas deposits in the entire country. With a dividend yield of just above 7% SJT is a nice stream of income with a total yearly dividend of $.27. They have been paying dividends for close to 30 years without a miss, making it one of the safer monthly dividend stocks under $5.
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Investing In Stocks Under $5
Investing in stocks under $5 that pay monthly dividends can be a solid strategy for investors. Still, caution should never be far from investor minds as stock prices of such equities can certainly decline, so perform your due diligence. Moreover, employing the VectorVest stock analysis and portfolio management software can help substantiate or disprove each of the top five picks for July 2019 via its graphs and proprietary Valuation metrics – Value (VST), Value Safety (VS), Value Timing (VT) and RV – along with determining if they are actually shares to buy.
- MFS Intermediate High Income Fund (CIF) – Consistent monthly dividends with a 9.5% yield.
- Banco Bradesco SA (BBD) – A major Brazilian bank with a 6% yield.
- Oxford Square Capital (OXSQ) – High dividend yield of 10.5% but shrinking payouts.
- PermRock Royalty Trust (PRT) – Lucrative with a 12% yield from oil and gas profits.
- San Juan Basin Royalty Trust (SJT) – Steady income with a 7% yield from rich oil and gas deposits.
These stocks provide high yields as well as stability, so they are worth considering for your portfolio. And as always, you can’t forget to have the most recent market data. Take care and invest well!