7 Cheap High-Yield Dividend Stocks to Buy Now


  • Investors should ride out market volatility with these cheap high-yield dividend stocks.
  • Arbor Realty Trust (ABR): Has recently beat Wall Street estimates, demonstrating strength.
  • Great Ajax (AJX): Great Ajax is trading at a significant discount to its peers.
  • Janus Henderson (JHG): Janus Henderson just raised its dividend payments.
  • MDC Holdings (MDC): Wall Street analysts agree that MDC Holdings has significant upside potential.
  • Cogent Communications (CCOI): Investors can get healthy income and benefit from a dominant internet player.
  • National Retail Properties (NNN): National Retail Properties has consistently posted strong results.
  • Midland States Bancorp (MSBI): Another strong company in terms of recent quarterly performance.
cheap high-yield dividend stocks - 7 Cheap High-Yield Dividend Stocks to Buy Now

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Dividend-paying stocks tend to attract investors seeking a regular source of income. Although these companies do not grow above industry average, they assure a stable source of income.

This is important, especially in times of stock market volatility. The stocks below provide high dividends and are currently trading at a massive discount. Additionally, consensus estimates and price targets are encouraging.

Most importantly, they are currently on sale at great prices. That makes these seven companies the perfect cheap high-yield dividend stocks to buy now.

Cheap High-Yield Dividend Stocks: Arbor Realty Trust (ABR)

the Arbor Realty Trust (ABR) logo on a web browser, magnified by a magnifying glass
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Dividend Yield: 12.79%

Arbor Realty Trust (NYSE:ABR) is one of my favorite dividend-paying stocks.

The company has a payout ratio of 86.3%. ABR has increased its dividend over the last nine consecutive quarters, enhancing dividend payments by 30% over than time span. Its dividend yield of 12.79% is much higher than the industry average.

ABR’s strong quarterly results make me believe that it will be able to sustain its high dividend rate going forward. The company has surpassed Street estimates by a wide margin over the last four quarters. In the second quarter of 2022, the company reported earnings of 52 cents per share, outpacing Street estimates by 9 cents.

Great Ajax Corporation (AJX)

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Dividend Yield: 13.81%

Great Ajax Corporation (NYSE:AJX) is a real estate investment trust. It primarily manages a portfolio of single-family residential and small commercial mortgage loans. The company also has investment in multi-family residential and commercial properties.

Given it’s a REIT, AJX distributes 90% of its earnings in form of dividends to shareholders in order to receive tax advantage.

The company currently pays a quarterly cash dividend of 27 cents per share, the highest since 2020. The current dividends reflect a yield of 13.81%.

At a current P/E multiple of 7.1x, the stock is trading at a discount compared to its sector median of 9.57x, representing an opportunity for investors.

Cheap High-Yield Dividend Stocks: Janus Henderson Group (JHG)

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Dividend Yield: 7.58%

Janus Henderson (NYSE:JHG) is one of the best cheap high-yield dividend stocks to buy. In the first quarter, its board stepped up its dividend payments to 39 cents per share, representing a payout ratio of 42.9%.

It has a dividend yield of 7.58%, which is nearly double the payment made by its competitors in the industry.

However, JHG stock is down 52% since last year, underperforming the markets. The company’s worse-than-expected quarterly results over the last two quarters led to this decline in share price.

The stock is currently trading at a massive discount of 55% at a multiple of 9x. At the current price, it makes sense to consider investing in this stock from a long-term perspective.

M.D.C. Holdings (MDC)

A magnifying glass is focused on the logo for MDC Holdings on the company's website.
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Dividend Yield: 6.95%

M.D.C. Holdings (NYSE:MDC) has been paying dividends for the last 27 years. It current pays a quarterly cash dividend of 50 cents  per share, reflecting a pay-out of 28.8%. Its retention ratio of more than 77% suggests most of its funds are used for growth opportunities.

At its current price, the stock is trading at a 64% discount compared to its competitors.

The consensus average price target for the stock is $40.17  with a high forecast of $45 and a low forecast of $31.50. The average price target represents upside potential of 38%.

Cheap High-Yield Dividend Stocks: Cogent Communications Holdings (CCOI)

A photo of the cogent logo inside a magnifying glass
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Dividend Yield: 7.11%

Cogent Communications (NASDAQ:CCOI) is one of the largest internet service providers in the world. It operates in more than 218 markets across 51 countries.

The company’s Q1 2022 results shows strength. Total revenues grew 1.6% year-over-year and 1.3% sequentially. EBITDA margins have also expanded 50 basis points to 2.9%.

The company has a history of improving its dividend payments for the last nine years. In Q1 2022, the board enhanced CCOI’s quarterly cash dividend by 12.8% annually to 88 cents per share.

National Retail Properties (NNN)

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Dividend Yield: 5.68%

National Retail Properties (NYSE:NNN) invests in several single-tenant commercial properties with long term lease. At the end of June, the company had properties across 48 states.

The company has raised its dividend consistently for 32 years.

It should be able to sustain its dividend payments going forward, given its strong quarterly results. At the end of Q1 2022, NNN generated $190.2 million in revenues, up 5.9% year over year. The company had $54 million available in cash.

The company is currently trading at a discount based on its forward P/E multiple of 22.4x, making it attractive for value investors.

Cheap High-Yield Dividend Stocks: Midland States Bancorp (MSBI)

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Dividend Yield: 4.67%

Midland States Bancorp (NASDAQ:MSBI) provides banking products and services.  

The company has been growing its top line at a double digit rate of 10% over the last five years. Net income has also improved 14.4%.

For fiscal 2022, its earnings per share are expected to be $3.84, reflecting 7.5% growth year over year. Revenues are expected to grow 11% during the year. This strong performance will support its dividend payments.

On the date of publication, Sakshi Agarwalla did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/cheap-high-yield-dividend-stocks/.

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