I’m always on the lookout for the best dividend stocks to buy and dividend stocks under $25 are all the more tempting.
The best dividend stocks are doing well in the stock market. They also reward investors for holding them buy paying a monthly or quarterly dividend.
With the stock market struggling so far in 2022, dividend stocks carry a little more importance. Even if the market is down, then your dividends can help mitigate those losses and help you sleep a little better at night. The dividend ratio will even rise if the equity’s price falls far enough.
There are plenty of interesting dividend stocks under $25, but I used my Portfolio Grader to hone in the best names. Here are seven of the best low-priced 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|
|ALEX||Alexander & Baldwin||$18.50|
BCP Bancorp (BCBP)
BCP Bancorp (NASDAQ:BCBP) is a New Jersey-based regional bank with 29 locations in New Jersey and New York. With interest rates rising this year, BCP and other banks are in a better position to profit from mortgages, auto loans and other lending activities.
Earnings in the second quarter were mixed, as the company reported revenue of $27.43 million, which missed analysts’ estimates for $26.44 million. Earnings of 58 cents per share, however, beat analysts’ estimates by 2 cents per share.
On top of that, BCP pays a quarterly dividend of 16 cents per share, which is a payout ratio of 3.6%. Not bad at all for one of the better 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 Grader.
Natural Grocers by Vitamin Cottage (NGVC)
It won’t surprise you to learn that Natural Grocers by Vitamin Cottage (NYSE:NGVC) operates grocery stores that specialize in organic and natural foods. It has 162 locations in 20 states.
But you may be surprised by the stock’s performance.
NGVC has had an up-and-down year, rising by more than 66% this spring as inflation pushed food prices higher, and then losing it all as momentum faded and the company’s profit margins were squeezed by higher freight costs and lower product margins.
Natural Grocers says that its store expenses as a percentage of net sales jumped from 22.1% to 22.6% in the third quarter, and gross margin fell by 10 basis points. On the plus side, net sales in the third quarter rose by 3% from a year ago, and the average transaction size rose by 2.7%.
For 2022, the stock is essentially flat, just showing a gain of 1%, but that’s much better than the overall market. NGVC also carries an annual dividend of 40 cents, or an expense ratio of 2.9% making it one of the best dividend stocks under $25 in the grocery space.
Natural Grocers gets a “B” rating in the Portfolio Grader.
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 upper-income families and institutional investors.
On the whole, SAMG stock is having a great year – up 5% compared to a 24% drop in the Nasdaq composite. Earnings for the second quarter were mixed, with revenue of $32.17 million beating analysts’ estimates for $31.63 million. But earnings per share of 39 cents was less than Wall Street’s expectations for 41 cents.
The dividend will also make you take notice – at 18 cents per quarter, SAMG boasts a dividend ratio of 4%.
Silvercrest stock has a “B” rating in the Portfolio Grader.
San Juan Basin Royalty Trust (SJT)
I’ve written before about San Juan Basin Royalty Trust (NYSE:SJT), and I’m still a big fan. The trust owns royalty interests in oil and gas properties in the San Juan basin of New Mexico.
The company pays distributions that have been up this year as oil prices rose, which can be really attractive when oil prices are high, as they have been recently. And as gas prices have fallen over the last several weeks, so has SJT stock. But even though San Juan Basin stock is down 25% over the last three weeks, it’s still showing a 77% gain in 2022.
Earnings for the first quarter included revenue of $14.89 million, which is an increase of 81.3% from a year ago. But the big takeaway from SJT stock is the mammoth dividend – paid on a monthly basis, the stock is currently averaging an annual payout of $2.20 per share – that’s a payout ratio of more than 20%.
SJT stock has an “A” rating in the Portfolio Grader.
Trinity Capital (TRIN)
Trinity Capital (NASDAQ:TRIN) is a specialty lending company that works with growing companies, venture-backed companies and firms that have institutional equity investors.
It has funded more than 200 companies and claims to have $966 million in assets under management.
Earnings for the second quarter included revenue of $33.46 million, which beat analysts’ expectations of $31.06 million. Earnings per share of 48 cents came in just short of analysts’ expectations of 49 cents per share.
On the downside, TRIN stock is down 16% on the year. But the company has an outstanding dividend yield of 11.5%, or $1.68 per year.
Trinity Capital stock has a “B” rating in the Portfolio Grader.
NL Industries (NL)
NL Industries (NYSE:NL) is a holding company that has a 30% stake in Kronos Worldwide (NYSE:KRO), a chemical company. And it has an 87% stake in an engineered components maker, CompX International (NYSEAMERICAN:CIX).
What’s interesting that those two positions have a combined value of $673 million, and NL Industries has a market capitalization of only $414.4 million. So there’s more value in the company than that’s reflected in the stock price.
Earnings for the second quarter included revenue of $41.68 million, which was up nearly 15% from a year ago.
NL stock is up 15% so far this year, and it has a dividend ratio of 3.3%. It has an “A” rating in the Portfolio Grader.
Alexander & Baldwin (ALEX)
Alexander & Baldwin (NYSE:ALEX) is a real estate investment trust (REIT) that traces its history back more than 150 years.
It got its start in the sugarcane business in Hawaii – today, it’s a leading commercial real estate owner with ownership of 79 properties. And it remains in growth mode – the company pledged to spend $50 million to $75 million a year to buy properties in Hawaii.
As the real estate market tumbled in 2022, so has ALEX stock – it’s down more than 25%. But that’s not necessarily a dealbreaker for REITs. REITs are a special class of investment that gets preferential tax treatment in exchange for returning 90% of taxable income back to shareholders.
That’s why Alexander & Baldwin has a dividend ratio of 4.7%, or an annual payout of 88 cents per share.
That helps push this REIT to a “B” rating in the Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.