Stock Quotes in this Article: ELSE, ESEA

SAN FRANCISCO (Stockerblog) -- Low-priced stocks that pay dividends have a few advantages. The lower share price allows for greater diversification. The dividends provide the investor with quicker return on capital and can reduce volatility. You may not be aware of them, but there are actually more than half a dozen stocks, including closed-end funds, that sell for less than $5 a share and have dividend yields greater than 6%.

At, I've just updated the list of high-yield stocks selling for $5 or less, with yields ranging from 0.4% to 16.5%. Just remember that the yields are based on historical payments, and the dividends can be adjusted, reduced or terminated at any time. I also believe that extremely high yields may not be sustainable.

Electro-Sensors (ELSE), which makes and sells industrial production monitoring and process control systems, has a yield of 3.5% and recently traded at 4.64. The company, which trades at 28 times earnings, has been paying quarterly dividends since 1995. Earnings for the latest quarter ending Sept. 30 were down 16.9%. The company reports earnings for the quarter ending Dec. 31 on Feb. 21.


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    Euroseas (ESEA) owns and operates dry bulk ocean transportation carriers that transport iron ore, coal, and grain. The stock yields 6.6% and recently traded at 3.62 per share. Quarterly dividends have been paid since 2006. The stock has a forward price to earnings ratio of 21. Earnings for the latest reported quarter were negative, and the company reports again on Feb. 28.

    For the full list of high yield stocks trading for less than $5, which can be downloaded, updated and sorted, go to

    At the time of publication, author had no positions in stocks mentioned.

    Fred Fuld III, the publisher of stock and bond investing blog Stockerblog and founder of WallStreetNewsNetwork, has been in the financial services industry for over 20 years, working as an investment advisor, options market maker at the Pacific Stock Exchange, vice president of a San Francisco money management firm, university faculty member and wholesaler for the New Alternatives Fund (the first environmentally conscious mutual fund). He is the author of the books Investing in Brazil Stocks and The Green Light on Green Stocks.