No or low debt allows a company to allocate capital without endless thinking about the direction of interest rates. Since no money is owed, there is no monthly payment to lenders, a feature of the concept that many find pleasing. Those in charge can spend funds on projects without that kind of worry.
Shareholders like the idea as well – at least, those shareholders who understand how debt can hinder growth and constrain innovative thinking. Stocks of 4 such companies that pay a dividend of greater than 3% are listed here. There’s more to investment research than debt and dividends but it can be a decent start.
No or low debt stocks with 3+% dividends
Autohome, based in Beijing, calls itself “the leading online destination for automobile consumers in China.” This New York Stock Exchange-traded ADR has a price-earnings ratio of 17 and trades at just 1.04 times its book value. This year’s earnings are up 2.68%. The EPS over the past three years is down 11.37%.
The company has no debt, long-term or otherwise and pays a 5.96% dividend. The market capitalization is $3.48 billion.
The 50-week moving average in July crossed above the 200-week moving average, indicating that an upward direction of trend may now be in place.
The South Jordan, Utah-based company makes “smart” cutting machines using computer hardward designed for do-it-yourself projects. The stock is a Russell 2000 small caps ETF component with a market cap is $1.04 billion. Earnings this year are down 2.20% and down over the past three years by 22.79%.
The price earnings ratio is 19.75 and it trades at 4.55 times book value. The debt-to-equity ratio is .04. Cricut’s most recent dividend came to 14.42%. After dipping to near $3.50 per share, the stock now goes for $6.61. The price on Friday closed above the June high and now approaches a down-trending 200-week moving average.
With corporate headquarters in Singapore, this Nasdaq-traded ADR operates social media sites Bigo Live, Like and Hagoo. Earnings this year are off 1.71% and down over the past three years by 30.54%. There is no price-earnings ratio. The stock can be purchased at 49% of its book value.
The debt-to-equity ratio is .01. JOYY last paid a dividend of 2.99% for an ex-date of September 22, 2025. On the price chart above, you can see that the 50-week moving average crossed above the 200-week moving average in early March 2025. The relative strength indicator has reached into the “overbought” range.
The asset management firm has a market cap of $23.21 billion. It’s an S&P 500 component stock. The price-earnings ratio is 11 and it trades at 2.20 times book. This year’s earnings are down 1.34% and down over the past three years by 11.31%.
The debt-to-equity ratio is .05. T. Rowe Price pays a 4.81% dividend. Wells Fargo on September 9, 2025 initiated coverage of the stock with a rating of “equal weight” and a price target of $109.
The price chart shows a move from the April 2025 low of near $77.50 to the current $105.63. The Friday close came in just below a down-trending 200-day moving average and above a slightly up-trending 50-day moving average.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
No artificial intelligence was used in the writing of this post.
More analysis and commentary at johnnavin.substack.com.