In this article, we discuss 12 best dividend stocks under $10. You can skip our detailed analysis of dividend stocks and their performance, and go directly to read 5 Best Dividend Stocks Under $10.
Despite facing various challenges, such as banking sector instability and concerns about the economy, the U.S. stock market has shown remarkable strength in the first half of 2023. The S&P 500 has surged by 18.03% this year as of July 17, which has astonished analysts considering the significant decline in equities during 2022. Additionally, the tech-heavy Nasdaq Composite has experienced a remarkable gain of 36.5%, achieving its best performance in the first half in four decades. Although the likelihood of a recession happening this year has decreased, there are still lingering economic concerns. The New York Federal Reserve's recession probability model, which analyzes the Treasury yield curve, indicated a 71% chance of a recession occurring within the next 12 months.
During these uncertain market conditions, investors are gravitating towards income-focused stocks to navigate the situation. Dividend stocks, in particular, have gained popularity as they have historically performed well during economic uncertainties, making them attractive choices for investors looking to stay financially stable. Moreover, dividend-paying stocks have made a substantial contribution to the overall market returns over the years. According to data from Hartford Fund, highlighted in an article titled ‘25 Things Every Dividend Investor Should Know,’ dividend stocks delivered an average annual return of 9.18% from 1973 to 2022. In comparison, non-dividend-paying stocks experienced a negative return of 0.60% during the same period. The S&P 500 index, on the other hand, returned 7.68% during that time frame. Some of the best dividend stocks that remain top on investors’ radars include Walmart Inc. (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) because of their consistent dividend growth over the years. If you want to know more about quality dividend stocks, have a look at 11 Best Quality Dividend Stocks to Buy.
The investment landscape this year has once again shifted attention to tech stocks and analysts expect the rally to continue for the second half of the year as well. Dan Ives, an analyst at Wedbush, spoke with Fortune last month and gave a positive outlook on the tech sector. Here are some comments from the analyst:
“In a nutshell, there will be winners and losers in tech, but ultimately we see a strong [second half of the year] ahead for the tech sector. While bears will continue to fret about tech valuations and the uncertain macro backdrop, we believe this ultimately is the start of a new tech bull market we see heading into 2024, being driven by this A.I. revolution coupled with a stabilizing IT spending environment.”
Amidst the current tech frenzy, investments in dividend stocks have decreased. However, there is a high level of anticipation for their comeback due to their strong track record of historical performance. According to a report by Wall Street Journal, there are concerns that the Federal Reserve's interest rate hikes might trigger an economic recession. In such a situation, defensive companies that offer substantial dividends could excel once more. This is because, in times of economic decline, consumers typically focus on essential expenses, benefiting these defensive companies.
For this list, we used a Finviz stock screener to find dividend stocks trading below $10 as of July 17. From the initial list, we narrowed down the selection to companies that pay regular dividends to shareholders and possess robust dividend policies, ensuring consistent future dividends. From the resultant list, we picked 12 stocks with the highest number of hedge fund investors tracked by Insider Monkey as of Q1 2023.
12. Hamilton Beach Brands Holding Company (NYSE:HBB)
Number of Hedge Fund Holders: 4
Share Price as of July 17: $9.85
Hamilton Beach Brands Holding Company (NYSE:HBB) is an American leading designer, marketer, and distributor of small household appliances and commercial products. The company is known for manufacturing a wide range of kitchen appliances and related products.
In the first quarter of 2023, Hamilton Beach Brands Holding Company (NYSE:HBB) reported revenue of $128.3 million, which fell by 12.4% growth from the same period last year. The company's operating cash flow for the quarter grew to $34.8 million compared to cash used for operating activities of $20.8 million in the prior year. At the end of March 31, it had over $2.2 billion available in cash and cash equivalents.
On May 11, Hamilton Beach Brands Holding Company (NYSE:HBB) declared a quarterly dividend of $0.11 per share, raising it by 4.8%. With a dividend yield of 4.47%, HBB is one of the best dividend stocks on our list. Other dividend stocks grabbing investors' attention include Walmart Inc. (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV).
At the end of Q1 2023, 4 hedge funds in Insider Monkey's database owned stakes in Hamilton Beach Brands Holding Company (NYSE:HBB), the same as in the previous quarter. These stakes have a total value of over $12.3 million. Among these hedge funds, Third Avenue Management was the company's leading stakeholder in Q1.
Colony Bankcorp, Inc. (NASDAQ:CBAN) is a Georgia-based bank holding company that provides a wide range of banking and financial services to individuals and businesses. At the end of March 31, the company had roughly $82 million available in cash and cash equivalents, up from $80.7 million three months ago. It ended the quarter with roughly $3 billion in assets.
Colony Bankcorp, Inc. (NASDAQ:CBAN), one of the best dividend stocks on our list, has been growing its dividends consistently for the past five years. The company currently pays a quarterly dividend of $0.11 per share and has a dividend yield of 4.46%, as of July 17.
As of the close of Q1 2023, 5 hedge funds tracked by Insider Monkey owned stakes in Colony Bankcorp, Inc. (NASDAQ:CBAN), compared with 6 in the previous quarter. These stakes have a consolidated value of over $15 million.
Riverview Bancorp, Inc. (NASDAQ:RVSB) is next on our list of the best dividend stocks under $10. The Washington-based bank holding company offers a range of financial and banking services primarily to individuals and small to medium-sized businesses in the Pacific Northwest region of the United States.
On June 30, Riverview Bancorp, Inc. (NASDAQ:RVSB) declared a quarterly dividend of $0.06 per share, which was in line with its previous dividend. The stock's dividend yield on July 17 came in at 4.65%.
In the first quarter of 2023, Riverview Bancorp, Inc. (NASDAQ:RVSB) posted revenue of roughly $14.8 million, which fell slightly by 0.5% from the same period last year. The company has shown confidence in its cash generation and expects its cash flows to reach approximately $40.8 million over the next 12 months.
At the end of March 31, 8 hedge funds in Insider Monkey's database were bullish on Riverview Bancorp, Inc. (NASDAQ:RVSB), compared with 9 funds in the previous quarter. These stakes have a total value of over $8 million. Among these hedge funds, Elizabeth Park Capital Management was the company's leading stakeholder in Q1.
AudioCodes Ltd. (NASDAQ:AUDC) is an Israeli company that specializes in providing advanced voice networking and media processing solutions for businesses and service providers worldwide. In the first quarter of 2023, the company's cash position remained stable as it generated over $3.2 million in operating cash flow. During the quarter, it paid $5.7 million to shareholders in dividends, which makes it one of the best dividend stocks on our list.
AudioCodes Ltd. (NASDAQ:AUDC) currently pays a semi-annual dividend of $0.18 and has paid regular dividends to shareholders since 2018. It has also raised its payouts every year since 2019. The stock has a dividend yield of 3.63%, as of July 17.
The number of hedge funds tracked by Insider Monkey reported having stakes in AudioCodes Ltd. (NASDAQ:AUDC) grew to 9 in Q1 2023, from 6 in the previous quarter. The consolidated value of these stakes is over $12 million. Ken Griffin's Citadel Investment Group was the company's largest stakeholder in Q1.
An American bank holding company, Brookline Bancorp, Inc. (NASDAQ:BRKL) is next on our list of the best dividend stocks. The company generated roughly $100 million in revenues in the first quarter of 2023, which showed a 31.3% growth from the same period last year. It ended the quarter with $486.3 million in cash and cash equivalents, up from $383 million three months ago.
Brookline Bancorp, Inc. (NASDAQ:BRKL) offers a per-share dividend of $0.135 every quarter. It has been growing its payouts consistently for the past five years. The stock's dividend yield on July 17 came in at 5.68%.
According to Insider Monkey's database of Q1 2023, 11 hedge funds owned stakes in Brookline Bancorp, Inc. (NASDAQ:BRKL), down from 15 a quarter earlier. The total value of these stakes is nearly $40 million. Cliff Asness, Ken Griffin, and D. E. Shaw were some of the company's top stakeholders in Q1.
VAALCO Energy, Inc. (NYSE:EGY) is a Texas-based energy company that is engaged in the exploration, development, and production of oil and natural gas. The company initiated its dividend policy in the first quarter of 2021 and has paid regular dividends to shareholders since then. It currently pays a quarterly dividend of $0.0625 per share and has a dividend yield of 6.30%, as of July 17. It is one of the best dividend stocks under $10.
In the first quarter of 2023, VAALCO Energy, Inc. (NYSE:EGY)'s revenue showed a 17.1% year-over-year growth at $80.4 million. The company generated $42 million in operating cash flow during the quarter.
As of the close of Q1 2023, 15 hedge funds in Insider Monkey's database were long VAALCO Energy, Inc. (NYSE:EGY). The total value of stakes owned by these hedge funds is roughly $35 million. With over 2.3 million shares, Sabrepoint Capital was the company's leading stakeholder in Q1.
ACCO Brands Corporation (NYSE:ACCO) is a global manufacturer and distributor of office products and school supplies. The company provides a wide range of essential products used in offices, schools, and homes to enhance productivity and organization.
On April 28, ACCO Brands Corporation (NYSE:ACCO) declared a quarterly dividend of $0.075 per share, which was consistent with its previous dividend. The company has raised its payouts for four years in a row, which makes it one of the best dividend stocks on our list. As of July 17, the stock has a dividend yield of 5.36%. ACCO can be added to dividend portfolios alongside some of the best dividend stocks such as Walmart Inc. (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV).
As per Insider Monkey's database of Q1 2023, 16 hedge funds owned investments in ACCO Brands Corporation (NYSE:ACCO), worth collectively over $40.2 million. Among these hedge funds, AQR Capital Management was the company's leading stakeholder in Q1, owning a stake worth over $9 million.
