In this article, we discuss 13 high-dividend stocks to invest in under $10. You can skip our detailed analysis of high-dividend stocks and their performance over the years, and go directly to read 5 High-Dividend Stocks to Invest In Under $10.
High dividend yields are always attractive, but seasoned investors know only focusing on yields could be dangerous. In fact, stocks with extremely high yields can be a warning sign, signaling underlying financial distress. This is what happened with Walgreens Boots Alliance, Inc. (NASDAQ:WBA) earlier this year. The global pharmacy retail company was one of the highest-yielding stocks in the Dow, supporting a dividend yield of over 9% by November 2023 and boasting a 47-year streak of consistent dividend growth. However, the company’s inherent financial challenges, stemming from low consumer spending throughout last year, compelled it to slash its dividend by half at the beginning of 2024. In the past 12 months, the stock has experienced a decline of over 36% and it currently has a dividend yield of 4.6%.
That said, this has not always been the case. High-yield dividend stocks with strong financial fundamentals can pull investors out of the perils of dividend cuts and suspensions. For that, investors need to look for companies that have consistently raised their dividends, which suggests strong cash generation and solid earnings growth. This way, investors can benefit from long-term capital appreciation while receiving consistent income. Philip Morris International Inc. (NYSE:PM), Verizon Communications Inc. (NYSE:VZ), and Bristol-Myers Squibb Company (NYSE:BMY) are popular in this regard as these companies come with years-long dividend growth track records while offering solid dividend yields.
Dividend growth strategies, combined with high yields, have also shown strong results over the years. For this analysis, we will take a look at the returns of The S&P Sector-Neutral High Yield Dividend Aristocrats (HYDA), which aims to create a balance between dividend growth and relatively higher yields. The evaluation of the index, conducted by S&P Dow Jones Indices, showed that the index’s absolute return matched that of the S&P 500 from January 31, 2005 to July 31, 2023. The HYDA index also demonstrated lower overall volatility through the period, delivering improved risk-adjusted returns. The report also highlighted the index’s tendency to act as a buffer against volatility. It highlighted that the index outperformed the benchmark when the VIX level exceeded 20, with the most significant performance occurring when the VIX level surpassed 30.
While analysts recommend focusing on dividend growth stocks offering stable yields, investing in dividend growers is one of the most effective ways to experience the compounding power of dividends. Dividend growers often have the potential to generate greater income in the long run compared to high-yield dividend stocks, as analyzed by S&P Dow Jones Indices. The dividend yield of a dividend grower may be lower at the beginning, but the combination of a growing dividend and an appreciating stock price can result in stronger total returns over the long run. Having resolved the caveats, we will now take a look at some of the best dividend stocks with high yields, priced under $10.
Our Methodology:
For this list, we first used a stock screener to identify dividend-paying stocks priced below $10 and offering dividend yields above 6% as of March 30. From that selection, we chose 13 companies with strong dividend histories and ranked them in ascending order of their dividend yields, as recorded on March 30. We also mentioned hedge fund sentiment data for these stocks using Insider Monkey’s database of 933 hedge funds as of Q4 2023. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
13. Taitron Components Incorporated (NASDAQ:TAIT)
Dividend Yield as of March 30: 6.14%
Share Price as of March 30: $3.26
Taitron Components Incorporated (NASDAQ:TAIT) is an American manufacturing company that specializes in electronic components. The company’s products also include transistors and integrated circuits. On February 2, the company declared a quarterly dividend of $0.05 per share, which fell in line with its previous dividend. It has been paying regular dividends to shareholders since 2016, which makes TAIT one of the best dividend stocks under $10. The stock has a dividend yield of 6.14%, as of March 30.
At the end of Q4 2023, Jim Simons’ Renaissance Technologies was the only shareholder of Taitron Components Incorporated (NASDAQ:TAIT), owning stakes worth nearly $300,000.
12. Crown Crafts, Inc. (NYSE:CRWS)
Dividend Yield as of March 30: 6.27%
Share Price as of March 30: $5.10
Crown Crafts, Inc. (NYSE:CRWS) is a Louisiana-based company that markets and distributes infant and toddler products, including bedding, blankets, apparel, and accessories. The company currently offers a quarterly dividend of $0.08 per share for a dividend yield of 6.27%, as of March 30. Over the course of its dividend history, the company has also paid special dividends to its shareholders. It is among the best dividend stocks on our list that are trading below $10.
As of the close of Q4 2023, 4 hedge funds tracked by Insider Monkey reported having stakes in Crown Crafts, Inc. (NYSE:CRWS), which remained unchanged from the previous quarter. The consolidated value of these stakes is over $3.2 million. Among these hedge funds, Skylands Capital was the company’s leading stakeholder in Q4.
11. NatWest Group plc (NYSE:NWG)
Dividend Yield as of March 30: 6.30%
Share Price as of March 30: $6.80
NatWest Group plc (NYSE:NWG) is a British private banking and insurance holding company that offers related services to its consumers. The company’s semi-annual dividend comes in at $0.1386 per share for a dividend yield of 6.30%, as of March 30. It has been making regular dividend payments to shareholders since 2018, which makes NWG one of the best dividend stocks on our list.
The number of hedge funds tracked by Insider Monkey owning stakes in NatWest Group plc (NYSE:NWG) grew to 11 in Q4 2023, from 8 in the previous quarter. These stakes have a total value of over $9.6 million.
10. The Aaron’s Company, Inc. (NYSE:AAN)
Dividend Yield as of March 30: 6.67%
Share Price as of March 30: $7.50
The Aaron’s Company, Inc. (NYSE:AAN) is next on our list of the best dividend stocks under $10. The Georgia-based company provides lease-to-own and purchase solutions for furniture, electronics, and other products. It currently offers a quarterly dividend of $0.125 per share and has a dividend yield of 6.67%, as recorded on March 30. The company has been growing its dividends for the past 17 consecutive years. Moreover, in FY23, the company returned $15 million to shareholders through dividends.
At the end of December 2023, 22 hedge funds in Insider Monkey’s database reported having stakes in The Aaron’s Company, Inc. (NYSE:AAN), up from 20 in the previous quarter. The total value of these stakes is over $44.5 million.
9. FAT Brands Inc. (NASDAQ:FAT)
Dividend Yield as of March 30: 7.37%
Share Price as of March 30: $7.6
FAT Brands Inc. (NASDAQ:FAT) is an American restaurant company that owns and operates franchises of casual dining restaurants. The company reinstated its dividends in 2021 and has been making regular dividend payments to shareholders since then. It currently offers a quarterly dividend of $0.14 per share. With a dividend yield of 7.37% as of March 30, FAT is one of the best dividend stocks on our list.
FAT Brands Inc. (NASDAQ:FAT) was a part of 4 hedge fund portfolios at the end of Q4 2023, up from 2 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $4.5 million. ADW Capital was the largest shareholder of the company in Q4.
8. Sasol Limited (NYSE:SSL)
Dividend Yield as of March 30: 8.08%
Share Price as of March 30: $7.81
Sasol Limited (NYSE:SSL) is a chemicals company, headquartered in South Africa. The company is involved in the exploration, production, and refining of crude oil and natural gas. Currently, the company offers an interim dividend of $0.5321 per share and has a dividend yield of 8.08%, as of March 30. It is among the best dividend stocks on our list.
Insider Monkey’s database of Q4 2023 indicated that 12 hedge funds held stakes in Sasol Limited (NYSE:SSL), up from 8 in the previous quarter. These stakes are collectively valued at over $20.2 million.
7. Berry Corporation (NASDAQ:BRY)
Dividend Yield as of March 30: 9.07%
Share Price as of March 30: $8.05
Berry Corporation (NASDAQ:BRY) is an independent energy company that is engaged in the exploration and development of oil and natural gas reserves in the US. On March 6, the company declared a quarterly dividend of $0.06 per share, which was in line with its previous dividend. In addition to this, the company also announced a variable dividend of $0.14 per share. With a dividend yield of 9.07% as of March 30, BRY is one of the best dividend stocks on our list.
As of the end of the December quarter of 2023, 17 hedge funds tracked by Insider Monkey held stakes in Berry Corporation (NASDAQ:BRY), compared with 18 in the previous quarter. These stakes have a total value of roughly $60 million. With nearly 4 million shares, Oaktree Capital Management was the company’s leading stakeholder in Q4.
6. Global Medical REIT Inc. (NYSE:GMRE)
Dividend Yield as of March 30: 9.60%
Share Price as of March 30: $8.75
Global Medical REIT Inc. (NYSE:GMRE) ranks sixth on our list of the best dividend stocks under $10. The real estate investment trust company offers a quarterly dividend of $0.21 per share and has a dividend yield of 9.6%, as of March 30. The company ended the fourth quarter with over $1.2 million available in cash and cash equivalents.
The number of hedge funds tracked by Insider Monkey holding stakes in Global Medical REIT Inc. (NYSE:GMRE) grew to 8 in Q4 2023, from 5 in the previous quarter. The collective value of these stakes is over $7.7 million. Among these hedge funds, AQR Capital Management was the company’s leading stakeholder in Q4.
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Disclosure. None. 13High-Dividend Stocks to Invest In Under $10is originally published on Insider Monkey.
