What are dividends?

Dividends are regular payments made by companies to their shareholders, usually in cash. They represent a portion of the company’s profits and are a way to reward investors for holding the stock. Most dividends are paid quarterly, but some companies pay monthly or annually.

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What does it mean when a cheap stock has a high dividend yield?

A cheap stock with a high dividend yield means the company’s stock price is low relative to the amount of dividends it pays out. For example, if a stock is priced at $10 and pays $2 a year in dividends, that’s a 20% yield. This can be appealing for income-focused investors, but it may also signal higher risk or a temporarily depressed share price.

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Why would a small company pay a lot in dividends?

Smaller or niche companies might pay high dividends to attract investors, especially if they operate in stable industries with strong cash flow but limited growth potential. It’s also common in sectors like shipping or energy, where profits can swing widely year to year. Always check if the dividend is sustainable and backed by healthy earnings.

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Dividend stocks are a great way to generate consistent passive income. And you don't have to buy expensive shares to benefit from them. Some of the cheapest stocks on the market today offer exceptionally high dividend yields. Below is a ranked list of 10 of the best cheap dividend stocks, counting down from the lowest performer to the standout opportunity.

These stocks are ranked based on their dividend yields, stock prices, and potential as income plays in 2025.

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10. International Seaways, Inc. (INSW) - Dividend Yield: 1.42%

Share Price: $34
Dividend Amount: $0.70

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International Seaways operates a modern fleet of crude oil and petroleum product tankers, providing transport services across global markets. The company has benefited from strong tanker rates and strong demand, turning into consistent profitability and a solid dividend yield of 1.42%.

At $34 per share, it’s the highest-priced stock on this list but offers a reliable source of passive income. Its strong cash flow and shareholder-friendly policies make it a compelling option for long-term income investors.

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9. ZIM Integrated Shipping Services Ltd. (ZIM) - Dividend Yield: 40.07%

Share Price: $15
Dividend Amount: $3.17

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ZIM is an Israeli-based global container shipping company. Known for its focus on technology and digital freight solutions, ZIM has delivered strong financial results in recent years. It currently offers a 40.07% dividend yield, making it a high-yield option in the transportation sector.

With shares trading at just over $15, ZIM provides investors exposure to global trade and strong dividends, although freight rates can be cyclical.

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8. TORM PLC (TRMD) - Dividend Yield: 27.60%

Share Price: $18
Dividend Amount: $0.601

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TORM PLC is a Denmark-based shipping company that operates a fleet of product tankers, transporting refined oil products worldwide. The company benefits from favorable shipping rates and growing demand for oil product transportation.

TRMD’s 27.60% dividend yield makes it one of the most generous dividend payers in the shipping industry. Its stock price of $18 offers a low barrier to entry for investors seeking high yields in the maritime sector.

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7. Star Bulk Carriers Corp. (SBLK) - Dividend Yield: 12.91%

Share Price: $16
Dividend Amount: $0.09

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Star Bulk Carriers transports dry bulk commodities like iron ore, coal, and grains. Thanks to a modern fleet and efficient operations, SBLK generates solid free cash flow, which supports its impressive dividend payouts.

With a 12.91% dividend yield and a stock price of $16, SBLK is a cost-effective way for investors to gain exposure to the global shipping industry while earning steady income.

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6. Petróleo Brasileiro SA (PBR) - Dividend Yield: 20.56%

Share Price: $14
Dividend Amount: $0.24

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Petrobras is Brazil’s largest oil and gas company. The company has capitalized on strong commodity prices and effective cost management to deliver exceptional shareholder returns. Despite political risks, Petrobras maintains an impressive 20.56% dividend yield.

At $4 per share, PBR offers high-income potential, though investors should be mindful of Brazil's state ownership and regulatory factors.

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5. Kohl’s Corporation (KSS) - Dividend Yield: 6.04%

Share Price: $9.4
Dividend Amount: $0.125

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Kohl's is a U.S. retail chain known for its extensive product selection, ranging from apparel to home goods. While the retail sector faces ongoing headwinds, Kohl's has remained committed to rewarding shareholders through dividends.

With a 6.04% dividend yield and a low share price of $9.4, KSS is an intriguing option for dividend investors willing to weather retail sector volatility.

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4. BW LPG Limited (BWLP) - Dividend Yield: 25.37%

Share Price: $11
Dividend Amount: $0.418

BW LPG Limited is a global leader in the transport of liquefied petroleum gas (LPG), operating one of the world’s largest VLGC fleets. The company benefits from strong LPG demand, resulting in robust profitability and shareholder distributions.

BWLP’s 25.37% dividend yield makes it one of the top-paying stocks in the shipping sector. Its stock price of $11 offers an affordable entry point for income-focused investors.

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3. Ecopetrol S.A. (EC) - Dividend Yield: 29.99%

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Share Price: $10
Dividend Amount: $0.52

Ecopetrol is Colombia’s leading integrated oil and gas company. It plays a crucial role in the country’s energy infrastructure and has consistently delivered strong earnings despite volatile oil markets.

With a 29.99% dividend yield and a share price of just $10, Ecopetrol offers an attractive option for investors seeking high yields in emerging markets.

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Sign up for LevelFields to see the full list of cheap stocks with massive dividend payouts—and get real-time alerts every time a company announces a major dividend increase. 

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Frequently Asked Questions about Dividends

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What is the most profitable dividend stock?

At present, CMB.TECH NV (CMBT) offers the highest dividend yield on the list at 65.69%, but sustainability and risk factors should be considered.

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What are the 7 stocks to buy and hold forever?

Popular long-term picks on the internet include:

1. Johnson & Johnson (JNJ)
   
   
2. Procter & Gamble (PG)
   
   
3. Microsoft (MSFT)
   
   
4. Visa (V)
   
   
5. Coca-Cola (KO)
   
   
6. PepsiCo (PEP)
   
   
7. Berkshire Hathaway (BRKB)

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How to make $1,000 a month in dividends?

You’ll need to invest:

• $240,000 at a 5% yield
  
  
• $120,000 at a 10% yield
  
  
• $80,000 at a 15% yield
  Diversification and dividend reinvestment can help accelerate income growth.
  
  

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What stocks pay a 7% dividend?

Examples include:

• AT&T (T)
  
  
• Altria Group (MO)
  
  
• MPLX LP (MPLX)
  These offer high yields but require careful review of payout ratios.
  
  

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How much money do I need to invest to make $500 a month?

To earn $500 monthly ($6,000 annually):

• At a 10% yield, you’ll need $60,000
  
  
• At a 5% yield, you’ll need $120,000
  
  

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How much will I have if I invest $100 a month for 5 years?

Investing $100/month for 5 years at a 7% annual return could grow to about $7,200.

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How to earn 10% interest per month?

Be cautious—legitimate opportunities offering 10% per month are extremely rare and highly risky. Most sustainable investments target 10% annually, not monthly.

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Can I get a dividend every month?

Yes! Companies and funds that pay monthly dividends include:

• Realty Income (O)
  
  
• STAG Industrial (STAG)
  
  
• Main Street Capital (MAIN)
  
  
• Monthly dividend ETFs like Global X SuperDividend ETF (SDIV) also provide steady income.

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