We recently published a list of the 13 High-Dividend Stocks to Invest In Under $10. In this article, we are going to take a look at where Nordic American Tankers Limited (NYSE:NAT) stands against other high-dividend stocks under $10.
Investors often favor dividend stocks for their long-term potential, with their appeal stemming from the consistent growth they tend to deliver over time. Ed Yardeni, the President of Yardeni Research, Inc., stated the following about dividends:
“Dividends are like plants: Both grow. But dividends can grow forever, while the size of plants is limited.”
Dividend stocks are experiencing renewed interest today as a means to return value to shareholders. In 2022, companies in the broader market paid out a record $565 billion in dividends—the highest amount ever recorded. This comes at a time when interest rates are structurally higher for the first time in decades, making the era of ultra-low borrowing costs seem like a thing of the past. Between 2018 and 2022, investors also weathered three bear markets, each marked by a drop of 20% or more.
As some of the biggest companies have grown to enormous sizes —both in terms of revenue and market cap—their ability to sustain high growth rates has naturally declined. Despite slower growth prospects, these companies remain highly profitable, generating more cash than they can effectively reinvest because they are returning it to shareholders through dividends. This is why more and more companies have initiated their dividend policies. In 2024, major tech companies joined the dividend club in an effort to offer both growth and value to shareholders. The tech giants, though offering low yields today, managed to return billions through dividends last year, which is a clear indication of their strong commitment to rewarding investors.
S&P Global also highlighted this trend in a recent report, noting that global dividend growth saw a sharp rise in 2024, climbing by an impressive 8.5%. The surge was especially strong in Asia-Pacific, where government policies encouraged companies to shift from annual to semiannual dividend distributions. At the same time, the US market experienced a wave of new and reinstated dividend payments, largely fueled by companies in the technology, media, and telecommunications (TMT) sectors.
With the market taking a volatile turn, dividend stocks are in the green, offering a sense of reassurance to investors. The Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, is down by over 4% since the start of 2025, compared with an over 10% decline in the broader market. As a result, analysts remain optimistic about dividend prospects in 2025. According to S&P Global, US total dividend payouts are expected to rise by 7% next year, reaching approximately $784 billion. In recent years—and continuing into the current fiscal year—sectors like energy, pharmaceuticals, financial services, banking, and REITs have played a major role in driving this growth.
Nordic American Tankers Limited (NAT): One of the High-Dividend Stocks to Invest In Under $10
A top-down view of a crane loading or unloading oil barrels from a Suezmax crude oil tanker.
For this article, we screened for dividend stocks under $10, as of the close of April 7. From that list, we identified stocks with high dividend yields and picked 13 stocks with dividend yields over 4%, as recorded on April 8. The stocks are ranked according to their dividends. While high-yield dividend stocks are sometimes seen as signs of weakening financial health, we focused on selecting companies with solid dividend track records and strong balance sheets.
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Dividend Yield as of April 8: 14.85%
Share Price as of the Close of April 7: $2.35
Nordic American Tankers Limited (NYSE:NAT) is a Bermuda-based international tanker company that owns, operates, and charters Suezmax tankers. In its latest earnings report, the company noted that, as part of its ongoing fleet optimization strategy, it had agreed to acquire a 2016-built Suezmax tanker from a reputable seller since the close of 2024. The vessel, priced in the mid to high $60 million range, is scheduled for delivery in the second quarter of the current year. Management indicated that the addition is expected to enhance both earnings potential and dividend capacity. The purchase is expected to be funded through a combination of cash and lease financing.
For the full year of 2024, Nordic American Tankers Limited (NYSE:NAT) reported net voyage revenues of $225 million and a net profit of $46.6 million. During the fourth quarter, the fleet’s average time charter equivalent (TCE)—which includes both spot and time charter vessels—stood at $26,416 per day per ship. This performance resulted in a strong operating margin, considering that daily operating expenses per vessel are approximately $9,000. In addition, following a newly secured and more favorable $150 million financing arrangement with Beal Bank, seven of NAT’s vessels remain unencumbered and debt-free, offering the company increased financial flexibility.
Nordic American Tankers Limited (NYSE:NAT), one of the best dividend stocks, has paid regular dividends to shareholders for 110 consecutive quarters. It currently offers a quarterly dividend of $0.06 per share and has a dividend yield of 14.85%, as of April 8.
Overall, NAT ranks 3rd on our list of the high dividend stocks to invest in under $10. While we acknowledge the potential of NAT as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than NAT but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
