A quarterly dividend payment from a high-quality stock may be as close to a sure thing as an investor can find on Wall Street. Even during periods of broad market weakness, the lower a stock’s price falls, the higher its dividend yield rises.
[Sign up for stock news with our Invested newsletter.]
Unfortunately, companies often cut their dividend payments as the first line of defense when times get tough, and many dividend stocks priced under $10 may not be safe investments. Investors buying these stocks should always take a close look at their business fundamentals. Here are seven of the best dividend stocks under $10, according to Morningstar:
| Stock | Upside Potential* | Forward Dividend Yield |
| Vale SA (ticker: VALE) | 43.5% | 14.1% |
| Stellantis NV (STLA) | 119.7% | 8.3% |
| Vodafone Group PLC (VOD) | 31.0% | 7.7% |
| Viatris Inc. (VTRS) | 80.5% | 6.0% |
| Swatch Group AG (OTC: SWGAY) | 147.3% | 4.1% |
| Grupo Televisa SAB (TV) | 156.4% | 5.1% |
| Kohl’s Corp. (KSS) | 540.1% | 7.1% |
*As of April 24 close.
Vale SA (VALE)
Vale is a Brazilian miner and is one of the world’s largest iron ore and nickel producers. Vale shares lagged in 2024 and are down about 20% in the past year. The silver lining is the pullback has pushed Vale’s dividend yield up to 14.1%, the highest on this list and a rarity among stocks priced under $10. Analyst Jon Mills says Vale is a key supplier to the global steel industry, and its high yield and attractive dividend make it a compelling investment. Morningstar has a “buy” rating and $14 fair value estimate for VALE stock, which closed at $9.75 on April 24.
Dividend yield: 14.1%
Stellantis NV (STLA)
Stellantis is a global auto manufacturer based in the Netherlands that was formed by the 2021 merger between Groupe PSA and Chrysler. Analyst Rella Suskin says Stellantis is focused on delivering operating margins in the double-digit percentage range. The company’s DARE 2030 targets include becoming the world’s most profitable auto manufacturer, achieving carbon neutrality by 2038 and reaching 100% electric vehicle production in Europe and 50% in the U.S. by 2030. Unfortunately, Suskin says EV competition in Europe may make the company’s operating margin goals challenging. Morningstar has a “buy” rating and $20.50 fair value estimate for STLA stock, which closed at $9.33 on April 24.
Dividend yield: 8.3%
Vodafone Group PLC (VOD)
Vodafone is a leading telecom company in Germany and the UK. Vodafone’s stock is up about 10% year to date, the best performance of any stock on this list. Vodafone was recently granted conditional regulatory approval to merge with UK competitor Three if the combined company updates the UK mobile network over the next eight years. Analyst Javier Correonero says the merger should reduce competition among UK network operators, stabilizing prices. Correonero is also bullish on Vodafone’s decision to divest Spanish and Italian operations. Morningstar has a “buy” rating and $12.20 fair value estimate for VOD stock, which closed at $9.31 on April 24.
Dividend yield: 7.7%
[SEE: 9 Highest Dividend-Paying Stocks in the S&P 500]
Viatris Inc. (VTRS)
Viatris is a global generics and biosimilars pharmaceutical company that formed from the 2020 merger of Mylan with Upjohn, Pfizer’s off-patent drug division. Analyst Keonhee Kim says small-molecule oral tablets are relatively easy to produce, creating competition and compressing margins. Therefore, Kim says Viatris will likely focus more on generic drugs with complex formulations, dosages or administrations, such as injectables. In its off-patent branded drug business, Kim says Viatris will focus on specialty fields such as ophthalmology, dermatology and gastroenterology that allow for relatively small sales forces. Morningstar has a “buy” rating and $14.50 fair value estimate for VTRS stock, which closed at $8.03 on April 24.
Dividend yield: 6%
Swatch Group AG (OTC: SWGAY)
Swatch is a Swiss jewelry company that designs, manufactures and sells watches and other products. Analyst Jelena Sokolova says Swatch sales in China have been under pressure, but the stock is attractively valued given cyclical luxury consumption downturns have historically only lasted one to two years. In the long term, Sokolova says Swatch’s relatively high exposure to luxury product sales growth potential in China sets the company apart from peers. Despite near-term headwinds, she projects 4% annual revenue growth in the long term. Morningstar has a “buy” rating and $21.30 fair value estimate for SWGAY stock, which closed at $8.61 on April 24.
Dividend yield: 4.1%
Grupo Televisa SAB (TV)
Grupo Televisa is the largest cable television operator in Mexico, and it holds a minority stake in TelevisaUnivision, the largest Spanish-language media company in the world. Analyst Michael Hodel says Grupo Televisa’s Sky satellite business has struggled lately, but the company’s core cable business has improved even in a difficult competitive environment. The company has somehow managed to grow its broadband customer count while both cutting costs and raising prices. Hodel says Televisa could even potentially be a buyout target in a consolidating market. Morningstar has a “buy” rating and $5 price target for TV stock, which closed at $1.95 on April 24.
Dividend yield: 5.1%
Kohl’s Corp. (KSS)
Kohl’s is a U.S. department store retailer that sells moderately priced apparel, footwear and other accessories. Analyst David Swartz says Kohl’s will face ongoing competitive pressures from Amazon.com Inc. (AMZN) and other online retailers that will keep Kohl’s operating margins below pre-pandemic levels in 2019. Nevertheless, Swartz says Kohl’s has unique strengths as well, such as its 30 million loyalty members, its off-mall locations and its reputation for low prices. Kohl’s has also had success with its own e-commerce sales, which have grown to about $5 billion annually. Morningstar has a “buy” rating and $45 fair value estimate for KSS stock, which closed at $7.03 on April 24.
Dividend yield: 7.1%
More from U.S. News
8 Best Stocks to Buy Now With $1,000
Magnificent 7 Stocks: What Are They and How They Dominate the Market
10 Best Tech Stocks to Buy for 2025
7 Best Cheap Dividend Stocks to Buy Under $10 originally appeared on usnews.com
Update 04/25/25: This story was published at an earlier date and has been updated with new information.
