While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the most significant public companies, especially the technology giants, trade at prices up to $1,000 per share, while many are in the low to mid-hundreds. It is tough to get decent share count leverage at those steep prices.
24/7 Wall St. Key Points:
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With the Federal Reserve unlikely to cut interest rates until September, now is the time to grab stocks with big dividends.
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Stocks trading under $15 can be more volatile than larger-cap stocks.
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With a higher share count, investors can generate more passive income.
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Many investors, especially more aggressive traders, seek lower-priced stocks to generate a profit and increase their share count. That can help the decision-making process, especially when you’re on to a winner, as you can always sell half and keep the other half.
For low-price stock skeptics, many of the world’s biggest companies, including Apple, Amazon, Netflix, and Nvidia, once traded in the single digits.
We screened our 24/7 Wall St. research database, looking for smaller-cap companies that could offer patient investors enormous returns for the rest of 2025 and beyond. Four companies that appear on our screens also pay ultra-high-yield dividends, making the total return potential even more intriguing.
Why do we cover ultra-high-yield stocks?
While not suited for everyone, those trying to build strong passive income streams can do exceptionally well by having some of these top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can use a barbell approach to get passive income streams that can make a significant difference.
Arbor Realty Trust
Arbor Realty Trust (NYSE: ABR) offers nationwide solutions for multifamily finance. This company trades at a ridiculous 7.6 times estimated 2026 earnings and pays a massive dividend. Arbor Realty Trust invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States.
The company operates in two segments:
- Structured Business
- Agency Business
Arbor Realty Trust primarily invests in:
- Bridge and mezzanine loans, including junior participating interests in first mortgages
- Preferred and direct equity and real estate-related joint ventures
- Real estate-related notes
- Various mortgage-related securities
The company offers:
- Bridge financing products to borrowers who seek short-term capital to be used in the acquisition of property
- Financing by making preferred equity investments in entities that directly or indirectly own real property
- Mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction
- Junior participation financing in the form of a junior participating interest in the senior debt
- Financing products to borrowers seeking conventional, workforce, and affordable single-family housing
Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs.
JMP Securities has assigned a Market Outperform rating with a target price of $15.
Mach Natural Resources
Mach Natural Resources L.P. (NYSE: MNR) is an independent upstream oil and gas company that acquires, develops, and produces oil, natural gas, and NGL. The company is focused on the acquisition, development, and production of oil, natural gas, and NGL reserves in the Anadarko Basin region, which spans Western Oklahoma, Southern Kansas, and the panhandle of Texas.
The company’s Resources assets are located throughout Western Oklahoma, Southern Kansas, and the panhandle of Texas and consist of approximately 5,000 gross operated proved developed producing (PDP) wells.
Additionally, it owns a portfolio of midstream assets that support its leases, including ownership in four processing plants with a combined processing capacity of 353 million cubic feet per day (MMcf/d), as well as 1,480 miles of gas-gathering pipelines. It also owns water infrastructure consisting of 880 miles of gathering pipeline and 88 disposal wells.
Despite missing Wall Street estimates, the company announced a massive $0.79 distribution for the second quarter and reaffirmed its earnings outlook for the year. The shares won’t go ex-dividend again until August 22nd, so it will be important for investors to check if the $0.79 distribution is held or reduced. With prices much higher than they were before the last dividend, it could very well stay at that huge payout level.
Raymond James has a Strong Buy rating with a target price of $22.
Runway Growth Finance
This business development company (BDC) pays a stunning dividend and has a solid Wall Street following. Runway Growth Finance Corp. (NASDAQ: RWAY) is a BDC specializing in investments in senior secured loans to late-stage and growth companies.
It prefers to invest in companies engaged in:
- Technology
- Life sciences
- Healthcare
- Information services
- Business services
- Select consumer services and products sectors
Runway Growth Finance prefers investments in companies engaged in:
- Electronic equipment and instruments
- Systems software,
- Hardware, storage, and peripherals,
- Specialized consumer services,
- Application software
- Healthcare technology
- Internet software and services
- Data processing and outsourced services
- Internet retail, human resources, and employment services
- Biotechnology, healthcare equipment, and education services
It invests between $10 million and $75 million in senior secured loans.
Compass Point has a Buy rating with a $12 target price.
Trinity Capital
Based in Phoenix, this business development company pays a massive dividend. Trinity Capital Inc. (NASDAQ: TRIN) is an internally managed, closed-end, non-diversified management investment company that operates as a BDC.
Trinity Capital is a specialty lending company that provides debt, including loans and equipment financing, to growth-stage companies, including venture-backed companies and companies with institutional equity investors.
Its investment objective is to generate current income and capital appreciation through its investments across five vertical markets.
The company seeks to achieve its investment objective by making investments consisting primarily of:
- Term loans
- Equipment financing
- Working capital loans
- Equity and equity-related investments
Its equipment financings involve loans for general or specific use, including the acquisition of equipment that is secured by the equipment or other assets of the portfolio company. It targets investments in growth-stage companies, which are typically private and often include companies backed by institutional investors.
UBS has a Buy rating with a $17.50 price objective.
Investors Can Generate Huge Passive Income With 7 Dividend Kings
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Author: Lee Jackson
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