7 Best Cheap Dividend Stocks Under $10

Cheap dividend stocks that offer a 2.5% yield or better.

With recent volatility on Wall Street, a number of dividend stocks have seen share price declines. And while there is always a danger in “catching a falling knife,” as the old investing adage goes, it can sometimes be advantageous to stake out a position in long-term income investments when we see a short-term contraction like this. The following seven cheap dividend stocks all have share prices under $10 per share right now, and all pay 2.5% or better. That’s significantly higher than the average of just 1.3% in yield from the typical S&P 500 component — and with cheap dividend stocks, you can easily buy shares in large lots, too. Not all cheap stocks are worth a look, but here are seven that stand out.

Aegon NV (ticker: AEG)

While not a popular name, Dutch financial stock Aegon is definitely a cheap dividend stock to watch after shares have surged more than 35% over the last year. Even after that run, however, its current price is still only around $6 per share. AEG is a roughly $9 billion firm that offers insurance, pension management and investing services worldwide. Its mix of very stable long-term clients allows it to deliver in any economic environment, and rising interest rates have been a boon for AEG as they have for many other financial stocks lately. Just be aware that, like many other foreign dividend stocks, it doesn’t stick to the fixed quarterly cycle like U.S. dividend payers. Aegon only pays two distributions each year that can vary significantly in size, but based on the last 12 months of payouts, the yield is still quite substantial.

Annaly Capital Management Inc. (NLY)

Annaly is an attractive bet for folks looking for income investments to snap up on the cheap, but also offers one of the largest yields you’ll find on Wall Street regardless of share price. A diversified capital manager, Annaly Capital Management invests in residential and commercial assets primarily through mortgage-backed debt and similar securities. This cheap dividend stock has declined lately thanks to the fear that rising rates could significantly increase its borrowing costs, but payouts are holding steady at 22 cents a quarter — delivering tremendous yield despite a low share price.

ASE Technology Holding Co. Ltd. (ASX)

ASE is an Asia-based semiconductor stock that doesn’t actually make chips, but is involved in services like packaging and testing circuits. This is a lower-margin business than having your own patents, but it lends a huge measure of stability to the stock because it doesn’t have to worry about research budgets or potential obsolescence thanks to smarter competitors. It’s decidedly smaller than major chip foundries and design shops as a result, but this specialized tech company offers a reliable dividend payment that makes it worth a look despite its cheap share price.

EnLink Midstream LLC (ENLC)

EnLink offers energy transportation and storage for natural gas and natural gas liquids through a network of 11,900 miles of pipelines and almost 30 processing facilities across the U.S. As a “midstream” energy stock, you might think it wouldn’t have enjoyed the same big run as we’ve seen in Big Oil giants or small exploration companies. But ENLC has done a brisk business lately thanks to recovering demand for natural gas in the wake of COVID-19-related disruptions and is up an amazing 110% in the last 12 months as a result. Even after this run, however, it’s at only at around $8 per share — and recently bumped up its dividend to 11.3 cents per quarter to give it a yield more than four times the standard S&P company.

NatWest Group PLC (NWG)

U.K.-based bank NatWest is another example of a cheap financial stock that is benefiting from the general economic uptrend around the world along with the specific benefits that rising interest rates provide for firms with big cash hoards at their disposal. With just over $1 trillion in assets, NWG is a force in Europe even if it’s not as big of a name for most U.S. investors. And while it doesn’t follow the reliable quarterly cycle of domestic stocks, its last 12 months of payouts equal a yield that is almost twice the typical large-cap stock right now, despite a share price of only about $7.

Prospect Capital Corp. (PSEC)

Prospect Capital is another financial stock that’s very affordable on a per-share basis right now, coming in under $9 a share as of this writing. PSEC is a “business development company,” or BDC, meaning at its core it is an investing firm that looks for new opportunities. PSEC has a diverse portfolio of investments that includes everything from consumer goods manufacturers to energy companies to health care companies. This wide array of investments helps provide reliability to its 6-cent monthly dividend. Its focus on investments in smaller companies means there is sometimes short-term volatility based on economic trends, but if you’re in it for the long haul, then PSEC is worth a look thanks to its big yield and low share price.

Yamana Gold Inc. (AUY)

At just $4 or so per share right now, Yamana is an interesting cheap dividend stock for several reasons. For starters, it’s a play related to the big-picture trend of inflation as its mining operations bring gold out of the ground — and, as with so many other materials, gold prices are being pushed up by inflationary pressures. Additionally, it is a smaller miner at just $4 billion or so in market value, meaning a little bit of change in gold prices can add up in a hurry. And last but not least, it is projected to log 28 cents in earnings per share in fiscal 2022 but only to pay out about 12 cents in annual dividends — making the prospect of a dividend increase decent. All that plus a low share price makes AUY worth a look.

Here are the 7 best cheap dividend stocks under $10:

— Aegon NV (AEG)

— Annaly Capital Management Inc. (NLY)

— ASE Technology Holding Co. Ltd. (ASX)

— EnLink Midstream LLC (ENLC)

— NatWest Group PLC (NWG)

— Prospect Capital Corp. (PSEC)

— Yamana Gold Inc. (AUY)

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