These $5 Stocks and ETFs Are Paying Huge Yields to 12%, but There's a Catch

"While most of Wall Street focuses on large- and mega-cap stocks, which offer safety and liquidity, many investors are constrained in the number of shares they can buy. Many of the most significant public companies, especially the technology giants, trade at prices of up to $1,000 per share. Meanwhile, others trade in the low to mid-hundreds. It is hard to get meaningful share-count leverage at those steep prices."

"Low-priced stock skeptics should note that many of the world's largest companies, including Apple, Amazon, Netflix, and Nvidia, all traded in the single digits at some point. We identified four stocks and exchange-traded funds (ETFs) trading around $5, and some offer investors substantial ultra-high-yield dividends. The added value for investors is that, even if the stocks trade sideways or lower, you still receive a massive dividend for being patient and waiting for the shares to appreciate."

"As we noted, while they are better suited for investors trying to build strong passive income streams, these companies, paired with more conservative blue-chip dividend giants, can be used in a barbell approach to generate passive income that makes a significant difference. GAMCO Global Gold, Natural Resources & Income Trust This is the perfect investment for investors looking to add gold and energy stocks."

Most Wall Street attention centers on large- and mega-cap stocks that provide safety and liquidity but often trade at high per-share prices, limiting share-count leverage. Lower-priced stocks allow investors—especially growth, income, and aggressive traders—to buy more shares and enhance returns through position sizing and the ability to realize gains while retaining exposure. Several major companies previously traded in single digits, illustrating low-price potential. A selection of stocks and ETFs around $5 can offer ultra-high-yield dividends and substantial passive income. Combining ultra-high-yield positions with conservative dividend giants can form a barbell approach. These opportunities carry high risk.

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