Have $1000 and Need Ultra-High-Yield Dividend Income? Our Favorite $5 Stocks

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 hard to get decent share count leverage at those steep prices. Many investors, especially more aggressive traders, look at lower-priced stocks to make a profit and increase their share count. That can help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.

24/7 Wall St. Key Points:

• Low-priced stocks allow investors to buy more shares to boost the power of the investment.

• Typically, stocks that trade under $5 are not marginable, but 24/7 Wall St. discourages the use of margin.

• Investors with higher risk tolerance love stocks trading near the $5 level.

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For younger investors or those on a tight budget, investing in stocks to generate consistent passive income can be daunting because many top dividend stocks trade at prices ranging from $25 to over $100 per share. Realizing a significant return on investment can be challenging with a small investing capital base of $ 1,000. Low-priced stock skeptics should note that 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. Five companies that appear on our screens also pay massive dividends, making the total return potential even more intriguing.

Why do we cover ultra-high-yield stocks?

While only suited for some, those trying to build strong passive income streams can do exceptionally well by having some of these companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can use a barbell approach to get passive income streams that make a significant difference.

Evolution Petroleum

Evolution Petroleum Corp. (NYSE: EPM) is an energy company that develops, owns, and exploits onshore oil and gas properties in the United States. This small-cap energy stock pays investors a huge dividend and could be a takeover target.

The company holds non-operated interests in:

• The SCOOP and STACK plays in Central Oklahoma

• The Chaveroo Field, situated in Chaves and Roosevelt Counties, New Mexico

• The Jonah Field, located in Sublette County, Wyoming

• The Williston Basin, situated in Williston, North Dakota

• The Barnett Shale field in North Texas

• The Hamilton Dome, situated in Hot Springs County, Wyoming

• The Delhi Field, an onshore CO2-EOR project located in northeast Louisiana in Franklin, Madison, and Richland Parishes, as well as small overriding royalty interests in four onshore central Texas wells

Nuveen Credit Strategies

Run by one of the world’s largest money managers, this exchange-traded fund boasts a staggering 423 holdings and a substantial 11.7% dividend, offering the kind of diversity that ultra-high-yield investors seek. Nuveen Credit Strategies Income Fund (NYSE: JQC) is a diversified closed-end management investment company. The fund’s investment objective is to achieve a high level of current income, with a secondary objective of total return.

At the time of purchase, the fund invests at least 80% of its assets in instruments that are senior to common equity in an issuer’s capital structure, including loans, debt securities, and preferred securities.

Nuveen Credit Strategies invests up to 20% of its managed assets in instruments of non-U.S. issuers that are either U.S. dollar- or non-U.S. dollar-denominated, including instruments of issuers located in or conducting business in emerging market countries. It also invests up to 25% of its managed assets in collateralized loan obligations (CLO) debt securities.

It serves various industries, such as:

• Software

• Hotels

• Restaurants

• Leisure

• Media

• Insurance

PermRock Royalty Trust

PermRock Royalty Trust (NYSE: PRT) acquires, develops, and operates oil and natural gas properties in the Permian Basin. With a substantial dividend, this energy trust makes sense as spot oil prices appear poised to rebound. PermRock Royalty Property Trust is a statutory trust that owns a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from the underlying properties. T2S Permian Acquisition II owns and operates the underlying properties.

The underlying properties comprise about 31,354 gross (22,394 net) acres in the Permian Basin, which extends over 75,000 square miles in West Texas and Southeastern New Mexico.

The underlying properties consist of four operating areas.

• The Permian Clearfork area consists of about 2,434 net acres on the Central Basin Platform of the Permian Basin in Hockley and Terry Counties, Texas.

• Permian Abo area consists of about 1,667 net acres on the Central Basin Platform of the Permian Basin in Terry and Cochran Counties, Texas.

• The Permian Shelf area consists of 14,390 net acres on the Eastern Shelf of the Permian Basin.

• The Permian Platform area consists of 3,903 net acres.

Prospect Capital

Prospect Capital Corp. (NASDAQ: PSEC) is a leading provider of flexible private debt and equity capital. Hedge funds love this top business development company, and the gigantic 13.77% dividend makes it a potential total return home run. Prospect Capital specializes in:

• Middle market, mature, mezzanine finance

• Later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development

• Capital expenditures and subordinated debt tranches of CLOs

• Cash flow term loans, marketplace lending, and bridge transactions

It also invests in the multi-family residential real estate asset class. The fund invests in secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second-lien debt, private debt, private equity, mezzanine debt, and equity investments in private and microcap public companies.

Prospect Capital focuses on both primary origination and secondary loans/portfolios. It invests in debt financing for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, and real estate financings/investments.

The company invests in the following sectors and business silos:

• Aerospace and defense

• Chemicals

• Conglomerate and consumer services

• Ecological

• Electronics

• Financial services

• Machinery and Manufacturing

• Media

• Pharmaceuticals

• Retail

• Software

• Specialty Minerals

• Textiles and leather

• Transportation

• Oil, gas, and coal production

In addition to favoring materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, and business services.

Oxford Square Capital

Oxford Square Capital Corp. (NASDAQ: OXSQ) is a closed-end, non-diversified management investment company. The firm’s investment objective is to maximize the total return of its portfolio. It seeks an attractive risk-adjusted total return by investing primarily in corporate debt securities and collateralized loan obligations that own corporate debt securities.

CLO investments may also include warehouse facilities, which are early-stage CLO vehicles designed to aggregate loans that can serve as the basis for a traditional CLO vehicle.

The company may also invest in publicly traded debt or equity securities.

Its portfolio of investments spans various industries, including:

• Aerospace and defense

• Business services

• Food and beverage

• Healthcare

• Industrials

• Materials

• Software

• Telecommunications services

• Structured Finance

• Information technology (IT) consulting

The company’s investment adviser is Oxford Square Management.

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