Investors commonly see dividend-paying stocks as a stable, defensive part of a portfolio. These firms should, in theory, pay out a steady stream of passive income in the form of regular dividend payments made possible by the company's continued operational success. Thus, some of the most popular dividend names are blue-chip names like Coca-Cola Co. (NYSE: KO) and Procter & Gamble Co. (NYSE: PG).
There is another way for investors with a greater risk tolerance to approach dividend names as well. Particularly given the recent turbulence in the market, several dividend-paying names have experienced significant price drops that have brought them into penny stock territory. To be sure, companies like Global Self Storage (NASDAQ: SELF), ACCO Brands Corp. (NYSE: ACCO), and Mativ Holdings Inc. (NYSE: MATIV) do not have the stability of a Coca-Cola or P&G, and their ability to continue to pay dividends—or to continue to pay them at the same sustained level—is not nearly as secure as those larger firms. However, each of these companies is trading at a relative discount, and each has the support of at least one optimistic Wall Street analyst.
