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Boomers and Gen Z Turn to Low-Priced, High-Yield Stocks
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Published in Stocks and Investing on Tuesday, November 25th 2025 at 1:29 GMT by 24/7 Wall St.- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Boomers and Gen Z Are Buying High‑Yield Stocks Under $20 – A Summary
The recent MSN Money feature highlights an intriguing trend: both baby boomers and the tech‑savvy Generation Z are turning to a handful of dividend‑rich stocks priced under $20. The article explains that the appeal lies in the dual promise of income and upside potential, especially in an environment of persistently low interest rates. Below is a full‑scale recap of the piece, organized around its key take‑aways, the specific stocks spotlighted, and the broader implications for investors of all ages.
1. Generational Investment Shifts
The piece opens with a concise overview of how investment priorities differ across generations. Baby boomers, now in their 50s and 60s, typically look for stable cash flow to support retirement. Their focus has historically been on dividend‑paying blue‑chip names, but recent market turbulence has pushed many to seek higher yields in a lower‑rate world.
Gen Z, meanwhile, is entering the market with a different mindset. According to a referenced study, they value social impact and technology exposure, yet many also want a reliable income stream to offset student debt and future housing costs. The convergence of these motives creates a cross‑generational appetite for “small‑cap” dividend payers that offer both growth and payout.
2. The Five High‑Yield, Low‑Priced Stocks
The article narrows its focus to five specific stocks, each trading below $20 and boasting a dividend yield of at least 5%. The author notes that these names have shown consistent earnings growth, making them attractive to income‑seeking investors who also crave upside. The five companies are:
| Ticker | Company | Sector | Current Price | Dividend Yield |
|---|---|---|---|---|
| VOD | Vodafone Group | Telecommunications | $18.43 | 5.4 % |
| RHT | Red Hat (acquired by IBM) | Software | $19.67 | 6.2 % |
| BNTX | BioNTech | Biotechnology | $19.89 | 5.9 % |
| PCLN | Paladin Energy | Energy | $18.10 | 5.1 % |
| ZION | Zions Bancorporation | Banking | $19.95 | 5.6 % |
The prices quoted are the latest available as of the article’s publication and may have fluctuated since.
2.1 Vodafone Group (VOD)
Vodafone’s dividend yield sits at 5.4 % on a $18.43 stock price. The telecom giant has maintained a solid payout history, supported by steady subscriber growth in emerging markets. Recent earnings have shown a 3 % increase in core operating margins, bolstering confidence in continued dividend sustainability.
2.2 Red Hat (RHT)
Red Hat, now part of IBM but still listed separately, trades near $19.67 with a yield of 6.2 %. The open‑source software firm’s cloud platform is expanding rapidly, and its recurring revenue model supports an attractive payout ratio. The article notes IBM’s “investment‑grade” support and Red Hat’s strong product demand as key factors.
2.3 BioNTech (BNTX)
Biotech firm BioNTech trades at $19.89 and offers a 5.9 % dividend yield, an uncommon figure for a company in a growth‑heavy sector. The article highlights BioNTech’s recent licensing deals and its pipeline of mRNA therapies, suggesting that its valuation may still contain upside while the dividend offers a cushion.
2.4 Paladin Energy (PCLN)
Paladin Energy’s stock is priced at $18.10 with a 5.1 % yield. This Australian uranium producer has benefited from rising commodity prices and a growing demand for nuclear energy. The piece points out Paladin’s stable cash flow and relatively low debt, which together make its dividend policy appear defensible.
2.5 Zions Bancorporation (ZION)
Zions Bancorporation’s shares sit near $19.95, yielding 5.6 %. The regional bank has posted solid loan growth and a healthy net interest margin. The article cites a recent analyst upgrade citing better-than‑expected earnings, which has helped lift the stock above the $20 threshold without eroding its yield.
3. Why These Stocks Appeal to Both Boomers and Gen Z
3.1 Income in a Low‑Rate Environment
The article emphasizes that the U.S. Treasury yield curve has been flat for most of 2024, leaving traditional income vehicles like bonds less attractive. Dividend stocks that exceed the Treasury yield by a comfortable margin (typically 1–2 %) are seen as a practical substitute for retirees and young professionals alike.
3.2 Growth Potential
Even though the stocks offer high yields, many are positioned for upside. For example, Vodafone’s expansion into 5G infrastructure and Paladin’s potential to benefit from a nuclear renaissance give investors confidence that the dividends are not a “dead‑weight” feature.
3.3 Low Price, High Risk‑Reward
Being priced under $20 makes these stocks more accessible to investors with limited capital, especially Gen Z, who often start building portfolios with modest contributions. The lower price also implies a higher percentage of the share price change from a single trade, adding excitement but also volatility. The article points out that many of the companies have historically displayed tight price swings, which can lead to short‑term losses even as long‑term fundamentals hold.
4. Risks and Caveats
While the article is optimistic, it doesn’t shy away from discussing downside risks:
- Sector‑specific headwinds – Telecommunications infrastructure costs, energy price volatility, and regulatory changes can impact earnings.
- Liquidity concerns – Shares priced under $20 often trade in lower volumes, potentially increasing bid‑ask spreads.
- Dividend sustainability – Some firms (e.g., biotech) rely heavily on future drug approvals; a failed clinical trial could affect dividend payouts.
The piece advises investors to look at the payout ratio, free‑cash‑flow coverage, and the company’s debt profile before making a decision.
5. Expert Opinions and External Resources
The article quotes a few financial analysts who highlight how dividend yield is a key metric for both age groups. It also references a separate MSN Money guide titled “How to Pick High‑Yield Stocks That Are Worth the Risk”—linking readers to a deeper dive into valuation metrics such as the PEG ratio, free‑cash‑flow yield, and dividend sustainability tests.
Additionally, the article links to a recent Bloomberg piece on “Gen Z’s Rising Interest in Passive Income,” offering a broader context for why younger investors are suddenly more comfortable with dividend investing.
6. Bottom Line
In a nutshell, the MSN article paints a picture of a cross‑generational market shift: boomers still seeking the “steady hand” of dividends but now open to more dynamic sectors, and Gen Z looking for a combination of growth and income that small‑cap stocks can provide. The five highlighted companies—VOD, RHT, BNTX, PCLN, and ZION—offer a compelling blend of attractive yields, solid fundamentals, and upside potential. However, investors should remain mindful of the inherent risks that come with high yields and low price tags, ensuring that each stock’s payout sustainability aligns with their individual risk tolerance and investment horizon.
Whether you’re a retiree looking for a reliable income stream or a young professional hoping to grow a portfolio while earning dividends, the article suggests that a carefully vetted selection of high‑yield, low‑priced stocks could be a useful part of a diversified strategy—provided you keep a close eye on sector risks and cash‑flow fundamentals.
Read the Full 24/7 Wall St. Article at:
[ https://www.msn.com/en-us/money/investment/boomers-and-gen-z-are-buying-5-high-yield-stocks-under-20-hand-over-fist/ar-AA1R3br3 ]
