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.

5.88% Yield and Market Outperformance — Is This REIT the Ultimate Defensive Play?

As a real estate investment trust (REIT), Global Self Storage must pay investors 90% or more of its taxable income in disbursements. Unlike some REITs, which focus on office or data center properties and are heavily tied to the economy's overall strength, Global's purview is self-storage properties. Given low operating costs and relatively stable demand, the self-storage business could constitute a reasonable defensive play in markets that are not oversaturated with options.

Although it has declined by nearly 7% year-to-date (YTD), Global has outperformed the S&P 500 over April 11, 2025. The company has a dividend yield of 5.88% and marginal annualized 3-year dividend growth.

With a dividend payout ratio of more than 161%, Global may be at risk of overpaying dividends. This may be one reason why the company recently agreed to an at-market offering of up to $15 million of common stock in partnership with Alliance Global Partners. The firm also beat analyst predictions for EPS in the most recent quarter by a healthy margin of 11 cents per share.

This 8.2% Dividend Stock Is Down 30% — Bargain or Value Trap?

With a whopping 8.21% dividend yield, dividend investors are likely to consider office and school supply manufacturer ACCO Brands. But the huge yield comes with a few important caveats.

First, ACCO has experienced a declining top line for the last several years, and uncertainties around the potential impact of tariffs further threaten the company's sales. Due to impairment charges, net income has also been negative in multiple recent periods. However, the company has been able to generate substantial free cash flows of at least $100 million per year.

ACCO's efforts to cut costs have improved margins and reduced debt load in recent months, further making the stock more attractive to investors. Still, shares are down about 30% YTD as of April 11, although that has given the company a price-to-sales ratio of just 0.2.

For investors optimistic that the company will navigate the tariff environment smoothly and turn around sales trends, Barrington Research shares in this optimism and has assigned ACCO a Buy rating and a price target of $7.00 per share, just about double the current price point.

High-Risk, High-Reward Manufacturing Dividend Play

Specialty materials manufacturer Mativ Holdings may be our list's highest-risk, highest-reward play. The company's operations leave it potentially exposed to significant tariff risk, and as of April 11, it had experienced a 55% share price decline YTD, compounded by an earnings miss in February.

On the other hand, though, Mativ offers the highest dividend yield of these three firms at 8.27%, and analysts at Stifel Nicolaus upgraded the firm from Hold to Buy in March, setting a price target of $10. This is more than double the current price of MATV shares. Investors seeking dividends and willing to take a risk could see big rewards for an investment in Mativ, if that prediction comes to pass.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here