These dividend stocks under $10 appeal to bargain hunters.
Dividends are a uniquely interesting investment perk. It’s not a given that publicly traded companies will pay you a guaranteed income to buy their stock. Dividend-paying companies will typically boost dividend payments to share higher profits with investors, maintain a stellar dividend payment history and attract new investors, among other reasons. Those factors led to a highly successful run for dividends, which account for 40% of all investment returns since 1930 and for 54% of stock market returns when inflation is high, as is the case in 2023. As some high-paying dividend stocks may be outside the average investor’s per-price range, it’s worth examining dividend payers whose shares can be had for $10 or less. That’s the case with these seven dividend winners — all of which cost less than a phone charger on Amazon.
Evolution Petroleum Corp. (ticker: EPM)
At a 7.4% dividend yield and a current $6.45 stock price as of Feb. 13, Evolution Petroleum leads this list of attractive low-cost, high-dividend stocks. EPM stock is in reverse so far in 2023, down 14.6% on a year-to-date basis as of Feb. 13, but the oil and gas company is standing firm on the 12-cent regular quarterly dividend it announced on Feb. 6 (matching the previous quarter’s 12-cent payment). Historically, Evolution is a dependable dividend payer, with an average dividend payout of 5.6% over the past five years, with the highest dividend payment at 16.6% and the lowest at 2.8%.
Dividend yield: 7.4%
Orange SA (ORAN)
This Paris, France-based telecom company specializes in mobile and internet services and is trading at about $10 as of Feb. 13. ORAN offers a dividend yield of 10.3% and a price-earnings ratio of 6.4. Orange SA is uniquely well positioned in the European telecom space, with ORAN partnering with Move Capital and its highly connected Move Capital I venture capital fund. The alliance puts the company on a short list of European technology stakeholder companies with solid connections to eurozone country governments, business groups and high-profile companies. The company has had an average dividend yield of 6.9% over the past five years.
Dividend yield: 10.3%
United Microelectronics Corp. (UMC)
This Taiwan-based semiconductor foundry company is an undervalued growth stock, with fourth-quarter revenue up 14.8% year over year and record-high $278.7 billion revenue for the full year of 2022, according to the company’s latest earnings report. United Microelectronics specializes in wafer fabrication, design and packaging services, technology areas that are difficult to emulate by high-profile semiconductor companies. Analysts on average rate UMC a “buy” with a 12-month price target of $9.90, with earnings-per-share increases in 2023 and 2024. UMC’s current dividend yield of 9.7% is attractive, especially for a company with growth potential that’s trading at $8.33 as of Feb. 13.
Dividend yield: 9.7%
Telefónica SA (TEF)
This Madrid, Spain-based communications and entertainment enterprise has seen its share price fall by about 16% over the past 12 months, although TEF stock is rebounding a bit, posting a year-to-date gain of 7%. At a 4.2% dividend yield right now compared with 5.8% in December 2022, the company’s payout could be better. But its position as the fifth-largest mobile network on the planet and its leadership in the in-demand 5G wireless technology sector signal solid growth ahead for Telefónica. Its third-quarter report cited an 11.2% rise in revenue, fueled primarily by double-digit upward spikes in Latin America, especially in the large Brazilian market.
Dividend yield: 4.2%
Rithm Capital Corp. (RITM)
With a whopping 10.4% dividend yield, Rithm stands as a savvy “buy” for investors looking for a good long-term play with robust dividends. The real estate investment trust, or REIT, has shot out of the starting gate in 2023, with a 17.3% year-to-date boost in share performance as of Feb. 13, so the high dividend payout may not last for long if RITM’s share price continues its upward trajectory. With a P/E ratio of 5.4 against 9.7 for its sector, RITM represents good value for share buyers — especially with that impressive yield in place and a stable dividend payout history (with $4.2 billion paid out in dividends since 2013).
Dividend yield: 10.4%
New York Community Bancorp Inc. (NYCB)
New York Community Bancorp is a classic high-dividend and low-share-price play for bargain-hunting income investors. NYCB offers a robust dividend yield of 7% and a low-entry share price of $9.73 as of Feb. 13. It has a track record of providing solid traditional banking services, such as multi-family home loans and deposit accounts. The regional bank’s new merger with Flagstar Bancorp should expand NYCB’s lending base while bringing a new customer base aboard that will fatten the bank’s bottom line. With $90.1 billion in assets as of year-end 2022 and a stable presence in heavily populated states such as New Jersey, New York, Florida and Ohio, NYCB seems like a steal at its current share price.
Dividend yield: 7%
Archrock Inc. (AROC)
This operations and equipment service provider in the oil and gas sector specializes in providing natural gas compression services to a host of industry manufacturers across the U.S. The stock is stable, returning 20.3% to investors in the past 12 months, well ahead of most energy companies in the same time period. AROC offers a 6.3% dividend yield and has been a steady payer over the years; in 2023, it raised its quarterly dividend from 14.5 cents to 15 cents per share.
Dividend yield: 6.3%
7 of the best cheap dividend stocks under $10:
— Evolution Petroleum Corp. (EPM)
— Orange SA (ORAN)
— United Microelectronics Corp. (UMC)
— Telefónica SA (TEF)
— Rithm Capital Corp. (RITM)
— New York Community Bancorp Inc. (NYCB)
— Archrock Inc. (AROC)
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7 Best Cheap Dividend Stocks to Buy Under $10 originally appeared on usnews.com
Update 02/14/23: This story was published at an earlier date and has been updated with new information.
