S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20

7 Low-Priced Dividend Stocks Under $10

Posted on Thursday, February 4th, 2021 by MarketBeat Staff
7 Low-Priced Dividend Stocks Under $10The recent trading activity surrounding low-priced stocks like GameStop (NYSE:GME) is a reminder to investors of the high-risk nature involved with these stocks. Often when a stock trades for under $10 (also termed a penny stock), it is trading that low for a reason. The company may not be profitable, or in the case of GameStop, it finds itself with a business model that no longer fits with consumer trends.

But that’s not always the case. It is possible to find low-priced stocks, even penny stocks, that offer great value. This is particularly true if the stock offers investors a dividend. Dividend-earning stocks are a diversification source for a consumer’s portfolio, particularly if the dividend gets reinvested. It’s literally like paying yourself for owning the stock.

And the stocks in this presentation look ready also to deliver some additional stock price growth that can increase your total return.

#1 - United Microelectronics (NYSE:UMC)

United Microelectronics logo

United Microelectronics (NYSE:UMC) is an easy choice to top this list of dividend stocks to buy under $20. However, the stock is making a push to not hold that title much longer. UMC stock experienced phenomenal growth in 2020. Starting the year at $2.66 per share, the share price exploded to $8.43 by year’s end. And the growth shows no signs of stopping.

At the time of this writing, United Microelectronics is up to $9.41 and that’s down from a high of $10.27 which was its highest level in over 20 years. Like many semiconductor stocks, UMC has benefited from the emerging trends that require its chips.

Moving forward, the company is concentrating its efforts in providing chips for Internet-of-Things (IoT) and automotive applications. Since these are two areas that will continue to dominate the market, you can expect UMC stock to continue on its growth track. And the stock has an annual dividend that currently has a 2.45% yield.

About United Microelectronics

United Microelectronics Corp. engages in the semiconductor foundry business. It offers complementary metal-oxide semiconductor logic wafers, mixed signal wafers, radio frequency complementary metal-oxide semiconductor wafers, embedded memory products, high voltage integrated circuits, and complementary metal-oxide semiconductor image sensors.Read More 
Current Price
$11.13
Consensus Rating
Buy
Ratings Breakdown
6 Buy Ratings, 0 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$7.30 (34.4% Downside)




#2 - Aegon (NYSE:AEG)

Aegon logo

Aegon at its core is an insurance company. But before you dismiss, Aegon (NYSE:AEG) as a relic of a dying model, you should keep in mind that the 175-year old global company is a survivor. And just one year ago, the company was managing about $1 trillion of revenue-generating investments.

In the United States, which is its largest market, the company, better known as Transamerica, derives two-thirds of its earnings. Transamerica is one of the top ten largest providers of pensions, variable annuities, and individual universal and term life policies in the United States. Through its Aegon Center for Longevity and Retirement (ACLR), the company is attempting to educate and create a dialogue about many trends including retirement security.

At one time, AEG stock rewarded investors with a much stronger dividend. That’s taken a bit of a hit during the pandemic. But the stock is still worthy of consideration, carrying a 3.34% dividend yield that it pays out annually.

About Aegon

Aegon NV is a holding company, which engages in the provision of insurance, pensions, and asset management services. It operates through the following segments: Americas, The Netherlands, United Kingdom, International, Asset Management, and Holding and Other Activities. The Americas segment covers business units in the United States and Brazil, including any of the units? activities located outside these countries.Read More 
Current Price
$4.47
Consensus Rating
Hold
Ratings Breakdown
2 Buy Ratings, 8 Hold Ratings, 2 Sell Ratings.
Consensus Price Target
N/A




#3 - Grupo Aval (NYSE:AVAL)

Grupo Aval Acciones y Valores logo

This is a penny stock that’s not a brand name for a couple of reasons. First, it’s a holding company. And second, its holdings are largely in Colombian and other Central American banks. However we said we were looking for hidden gems, and that’s what Grupo Aval (NYSE:AVAL) provides.

First, you have to look at Colombia’s banking system which is dominated by three major banking companies. One such bank is Banco de Bogota which is held by Grupo Aval. The big three banks benefit from above-average loan margins and substantial fee income.

2020 was rough for AVAL stock. The stock crashed 58% at the onset of the pandemic and it’s never been able to make it all the way back. But this is somewhat misleading. At the stock’s pre-pandemic level, it was up 34% over the prior four years. That may not blow you away. But one reason for the tepid growth is the company’s monthly dividend which currently has a 4.82% yield.

About Grupo Aval Acciones y Valores

Grupo Aval Acciones y Valores SA engages in the provision of financial services and products. It operates through the following segments: Banco de Bogota, Banco de Occidente, Banco AV Villas, Banco Popular, Corficolombiana, and Other. The Banco de Bogota segment offers banking services and products. The Banco de Occidente segment focuses on the corporate customers, government and government-owned entities, and retail customers.Read More 
Current Price
$5.16
Consensus Rating
Hold
Ratings Breakdown
0 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$5.50 (6.6% Upside)




#4 - Wisdom Tree Investments (NASDAQ:WETF)

WisdomTree Investments logo

Continuing the theme of financial services companies we have Wisdom Tree Investments (NASDAQ:WETF). The asset management firm actively manages a portfolio of exchange-traded funds (ETFs) and has approximately $68 billion in ETF assets under management (AUM).

Wisdom Tree uses a proprietary model to create custom ETFs for their clients. The goal is to achieve what the company calls “modern alpha” – a combination of alternative weighting and active management strategies. Of course, the proof is in the performance and that’s why Wisdom Tree should continue to grow its AUM in 2021 and beyond.

WETF stock made a late rally in 2020 but finished up 14% for the year. You have to pay close attention to the balance sheets of these companies before you invest. You should like what you see with Wisdom Tree. The company’s net income was up 3.7% and posted an operating margin of 23%. Wisdom Tree pays a quarterly dividend that currently yields 2.18%.

About WisdomTree Investments

WisdomTree Investments, Inc operates as an asset management company that focuses on Exchange Traded Products (ETPs). It distributes ETPs within the asset management industry, including brokerage firms, registered investment advisors, institutional investors, private wealth managers and discount brokers.Read More 
Current Price
$6.23
Consensus Rating
Hold
Ratings Breakdown
2 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$7.03 (12.8% Upside)




#5 - Vale (NYSE:VALE)

Vale logo

Vale (NYSE:VALE) has been below $10 for much of the last five years, but it is seeing a resurgence as the world moves out of pandemic. This is a tale of two companies. On the one hand, the company is one of three major iron ore producers. Demand for iron ore has been slumping as China has cut back based on a supply glut.

However, Vale is also the world’s leading producer of nickel which, along with lithium, is drawing increasing demand in the electric vehicle (EV) market. In fact, the latest versions of lithium ion EV batteries contain up to 60% nickel.

And it also is a miner of cobalt, but there is a growing to cobalt-free battery formulations that may make this aspect of the company’s business less significant.

VALE stock is up 38% on a trailing 12-month basis and carries a dividend yield of 4.07%.

About Vale

Vale SA engages in the production and exportation of iron ore, pellets, manganese, and iron alloys. It operates through the following segments: Ferrous Minerals, Base Metals, and Coal. The Ferrous Minerals segment includes production and extraction of iron ore, iron ore pellets, manganese, other ferrous products, and logistic services.Read More 
Current Price
$12.37
Consensus Rating
Hold
Ratings Breakdown
3 Buy Ratings, 7 Hold Ratings, 2 Sell Ratings.
Consensus Price Target
$17.59 (42.2% Upside)




#6 - Pearson (NYSE:PSO)

Pearson logo

Pearson (NYSE:PSO) is the largest pure play education company. However, in a global education market that is measured in the trillions, Pearson only holds a small fraction of the market. Hence, it’s inclusion on this list.

At one time the company was the largest book publisher in the world. In the last five years, the company has been making a hard pivot to the digital publishing space, and it hasn’t had an easy time of it during the pandemic.

The company is widely considered one of the best stocks in a low-growth sector. But this presentation is about finding quality, low-price dividend stocks. And Pearson fits that bill. The company pays a semi-annual dividend which is less desirable than a quarterly or monthly dividend but is better than an annual dividend.

In late January, it appears that PSO stock was targeted by the short squeeze crowd. This trading activity briefly pushed its stock over $10 per share. That would be an anomaly for this company that has consistently been priced under $10. I’d look for the price to fall back under $10 before buying the stock.

About Pearson

Pearson Plc engages in the business of education, business information, and consumer publishing markets. It operates through the following segments: Global Online Learning, Global Assessment, North American Courseware, and International. The Global Online Learning segment offers virtual schools and online program management.Read More 
Current Price
$8.24
Consensus Rating
Hold
Ratings Breakdown
3 Buy Ratings, 9 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
N/A




#7 - LivexLive Media (NASDAQ:LIVX)

LiveXLive Media logo

OK, I said there were seven dividend stocks, but there’s only six. The last stock on our list does not pay a dividend but is worth your attention because of its growth in a competitive niche. LivexLive Media (NASDAQ:LIVX) stock is up 189% on a trailing 12-month basis. In the age of digital everything, LivexLive allows its users to post live stream and on-demand digital audio and video. The platform also allows users to create and post podcasts.

Similar to Spotify (NYSE:SPOT) and other streaming services, LivexLive has a tiered subscriber model. The company has a free access level and a subscription service that allows ad-free streaming, which is also the way the company generates just over 50% of its revenue. The company generates the rest of its revenue from advertising/sponsorship and pay-per-view concerts.

Unlike the other stocks in this presentation, LivexLive is not yet profitable and therefore does not offer a dividend. However it is managing to increase revenue, which was undoubtedly aided by the pandemic that had more of its users staying home. The company had record revenue in its most recent quarter. Analysts will be looking to see if the company can maintain that strong revenue growth when it reports earning in February.

About LiveXLive Media

LiveXLive Media, Inc is a digital media company, which engages in the acquisition, distribution, and monetization of live music, Internet radio, podcasting, and music-related streaming and video content. It operates LiveXLive, a live music streaming platform; and Slacker Radio, a streaming music service, as well as produces original music-related content.Read More 
Current Price
$2.04
Consensus Rating
Buy
Ratings Breakdown
3 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$8.50 (316.7% Upside)



 

As you can see, you can find quality dividend stocks under $10 in a variety of market sectors. You should always perform your own research, but the stocks in this presentation offer solid growth potential and, in many cases, are positioned in sectors that will lead the economy forward.

But why is now the time to look for such stocks? Simply put, there’s good evidence that the stock market has become a gigantic bubble. In fact, according to Jim Rickards, “By some metrics, valuations are higher now than they were before the 1929 crash and…second only to the dot-com crash of 2000.”

I’m not saying that to scare you, only to suggest that you may have some misgiving about the market, and if you do, there is an alternative way to invest in low-priced stocks.

Whether you’re investing for growth or value, low-priced stocks should only make up a small percentage of your total portfolio.

However, if you find stocks that trade below $10 that offer interesting growth potential, they’re worth a bit of your speculative money, particularly when they pay you a dividend for your investment.

7 Solar Stocks That Are Ready to Shine

Investors have been frustrated by the renewable energy sector for decades. One reason for that is the technology was not ready for prime time, at least not in a cost-effective way. That is changing rapidly and with it the opportunity to be found in renewable energy stocks. However, within the renewable energy sector, wind and solar remain on top of the pyramid. The focus of this unique presentation is on solar stocks that are ready to break out.

Yes, President Biden’s infrastructure plan could have a significant impact on the sector. But interest in solar power has been growing for several years. One reason is that it’s become a national play. Solar used to be limited to areas like California and Florida, but improvements in the efficiency of the technology and the ability to capture the power for future use make it a viable option in more areas of the country. As evidence of this, the total amount of solar capacity installed throughout the country can power approximately 18 million homes.

As renewable energy options continue to expand, so will the opportunity for growth in solar. This is the beginning of what stands to be a multi-year trend. And there’s no time like the present for opportunistic investors to get involved.

View the "7 Solar Stocks That Are Ready to Shine" Here.





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