18%-Yielding Natural Health Trends Has Paid Dividends for 40 Straight Quarters
July 9, 2025
Outlook for MLM Pick Remains Solid
Multi-level marketing (MLM) or direct marketing companies represent a way of selling products to consumers using independent sales representatives. MLM businesses, or MLMs, don’t use retail stores to sell their products; instead, customers have to buy them directly from sales representatives.
Over the years, MLMs have gotten a bad rap for being pyramid schemes. Or rather, some have been exposed as being pyramid schemes, which has tainted the entire industry for some potential buyers.
Regardless, MLMs make a lot of money. The global MLM market, worth around $201.87 billion in 2024, is projected to hit $397.8 billion in 2034, expanding at a compound annual growth rate of 6.5%. (Source: “Global MLM Market Size, Share, Growth Analysis Report – Forecast 2034,” Zion Market Research, last accessed June 24, 2025.)
Some of the biggest names include Amway Enterprises Pvt. Ltd., Herbalife Ltd (NYSE:HLF), Nu Skin Enterprises Inc (NYSE:NUS), and Tupperware Brands Corporation.
Most publicly traded MLMs don’t pay dividends, and those that do have paltry payouts. For example, Herbalife doesn’t pay a dividend, and Nu Skin’s dividend yield is just 3.1%.
Then there’s overlooked Natural Health Trends Corp (NASDAQ:NHTC), with a dividend yield of 18%. And NHTC stock is up 14% over the last six months and five percent since the start of 2025.
With market capitalization of just $50.9 million, Natural Health Trends is on the smaller side of the MLM world (vs. Herbalife, which has market cap of $832.0 million). But Natural Health still has a big global presence.
With a member base of over 30,000 people, Natural Health Trends is a global company, with products available in nearly 50 countries. It has offices in North America, China, South Korea, Japan, Russia, and Europe. (Source: “Corporate Fact Sheet,” NHT Global, Inc., last accessed June 24, 2025.)
Here in the U.S., the company sells personal care, wellness, and quality of life products under the “NHT Global” brand.
Orders Sequentially Increased by Over 9%
For the first quarter ended March 31, 2025, Natural Health Trends reported revenue of $10.7 million, down slightly from $11.0 million in the first quarter of 2024. (Source: “Natural Health Trends Reports First Quarter 2025 Financial Results,” Natural Health Trends Corp, April 30, 2025.)
The company’s net income came in at $122,000, or $0.01 per share, compared to $188,000, or $0.02 per diluted share, in the first quarter of 2024. Net cash provided by operating activities was $484,000 in the first three months of 2025, compared to $549,000 in the first three months of 2024.
Commenting on the results, Chris Sharng, Natural Health’s president, said, “The 2% year-over-year revenue decrease was attributable to the timing of our incentive and promotional calendar between the two periods. However, we managed to sequentially increase orders taken by 9% over the fourth quarter of 2024, demonstrating sustained strong interest for our products…”
Natural Health Trends Maintains Quarterly Dividend of $0.20/Share
Because of its healthy balance sheet, Natural Health has been able to provide shareholders with a reliable dividend since 2014. (Source: “Dividend History,” Nasdaq, last accessed June 24, 2025.)
Most recently, in May, NHTC stock paid a quarterly dividend of $0.20 per share, or $0.80 on an annual basis, for a forward annual dividend yield of 18.1%. In addition to paying regular dividends for 40 consecutive quarters, Natural Health Trends has also paid 10 special dividends.
Admittedly, Natural Health’s high dividend yield is due, in part, to its lower share price. While NHTC stock is up 14% over the last six months and five percent year to date, it is down 25% on an annual basis.
That year-over-year number is pretty much in line with what’s going on with other MLM stocks. Over the last 12 months, USANA Health Sciences Inc (NYSE:USNA) stock has fallen 33%; Nu Skin stock is down more than 30%; and HLF stock is down 26%.
Keep in mind that, while NHTC is down on an annual basis, it at least provides a reliable ultra-high-yield dividend to help the company weather near-term uncertainty and volatility.
Chart courtesy of StockCharts.com
The Lowdown on Natural Health Trends Corp
Natural Health Trends Corp is a direct selling company with a history of providing investors with a reliable dividend and, on occasion, special distributions. NHTC stock has been underperforming over the last year, but, we could see it trend higher if the company is able to grow the number of active distributors, who help increase revenue and earnings.
In the meantime, NHTC shareholders are on the receiving end of a reliable, ultra-high-yield dividend.
While some investors may not be familiar with Natural Health Trends or even the world of direct selling, there are 27 institutions that hold 9.7%% of all outstanding NHTC shares.
Some of the biggest holders are Renaissance Technologies, LLC, BlackRock Inc., and The Vanguard Group Inc. A significantly larger 35.1% of all outstanding shares are held by insiders. And that larger insider stake should entice management to see the company perform well over the long haul. (Source: “Natural Health Trends Corp. (NHTC),” Yahoo! Finance, last accessed June 24, 2025.)
