In this article, we discuss high-dividend stocks to buy under $10. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 High-Dividend Stocks to Buy Under $10.
Dividend stocks offer advantages beyond just income generation, benefiting both regular investors and those seeking a steady stream of earnings. Dividend equities are added to portfolios for a maximum hedge against inflation due to their consistent cash flow and value growth. Moreover, dividend stocks outperformed non-dividend stocks historically, as shown by S&P 500 data between 1973 and 2022, where dividend stocks provided double the returns of non-payers.
Dividends also offer flexibility as investors can choose to receive them as cash or reinvest them. When reinvesting dividends, the power of compounding boosts profits significantly. Over the last century, dividends have made up roughly 41% of the S&P 500's overall gains. While the numbers may appear appealing, making profits from dividend stocks can be a bit challenging. It's wiser to choose quality companies with a strong history of increasing dividends rather than focusing solely on high yields. Dividend yield refers to the ratio that shows how much a company pays out in dividends annually in relation to its stock price. High dividend yields can sometimes be a red flag for investors because they might indicate potential issues with a company such as unsustainable dividends, market perception, and limited growth potential. It could also suggest that the company is paying out a large portion of its earnings as dividends, leaving less for reinvestment in growth or other financial needs.
That said, not all high-yield dividend stocks are the same. In certain industries like utilities and real estate, higher yields are normal and healthy due to their business models. Investors need to consider a company's business approach and the sustainability of its dividends when making investment decisions. Some companies with higher-than-average yields, such as Altria Group, Inc. (NYSE:MO), Verizon Communications Inc. (NYSE:VZ), and Telephone and Data Systems, Inc. (NYSE:TDS), have strong histories of paying dividends and solid financial standings. Overall, analysts advise stocks with dividend yields between 3% to 6% because they offer a decent income for investors.
For this list, we first used the Finviz stock screener and looked for dividend stocks under $10 and with dividend yields above 6%, as of August 5. The dividend yields of these stocks go as high as 18%. From the resultant list, we selected companies that have stable dividend histories taking into account their high yields and these companies have avoided multiple dividend cuts and suspensions over the years. Moreover, their cash position suggests they will likely continue paying dividends regularly in the future. The stocks are ranked in ascending order of their dividend yields, as recorded on August 5.
Dividend Yield as of August 5: 6.25%
Share Price as of August 5: $8.28
Genesis Energy, L.P. (NYSE:GEL) is a New Zealand-based diversified midstream energy company that is involved in various aspects of the energy industry. The company reported strong results in its recent quarterly earnings, with revenue jumping by 11.5% on a year-over-year basis at $804.6 million. Its operating cash flow for the quarter also grew to $157.7 million, from $104 million in the prior year quarter.
Genesis Energy, L.P. (NYSE:GEL) hasn't raised its dividends since the pandemic of 2020 but paid regular dividends during this period. It currently pays a quarterly dividend of $0.15 per share and has a dividend yield of 6.25%, as recorded on August 5. During Q2 2023, the company returned $23.3 million to shareholders in dividends, which makes it one of the best dividend stocks on our list. It can be added to dividend portfolios alongside Altria Group, Inc. (NYSE:MO), Verizon Communications Inc. (NYSE:VZ), and Telephone and Data Systems, Inc. (NYSE:TDS).
At the end of Q1 2023, 3 hedge funds in Insider Monkey's database reported having stakes in Genesis Energy, L.P. (NYSE:GEL), which remained unchanged from the previous quarter. These stakes are worth over $11.2 million collectively. Among these funds, Intrinsic Edge Capital was the company's leading stakeholder in Q1.
Dividend Yield as of August 5: 6.36%
Share Price as of August 5: $4.98
Crown Crafts, Inc. (NASDAQ:CRWS) is an American retail company that mainly specializes in home furnishings and toddler products and accessories. On July 21, the company declared a quarterly dividend of $1.565 per share, which was in line with its previous dividend. It is one of the best dividend stocks on our list as it has been growing its dividends consistently for the past eight years. The stock's dividend yield on August 5 came in at 6.36%.
In the second quarter of 2023, Crown Crafts, Inc. (NASDAQ:CRWS) reported revenue of $1.87 billion, which showed an 8.1% growth from the same period last year. The company ended the quarter with over $276 million in dividends, up from $156 million six months ago. It also returned $678 million to shareholders through dividends during the quarter.
As of the close of Q1 2023, 43 hedge funds in Insider Monkey's database reported having stakes in Crown Crafts, Inc. (NASDAQ:CRWS), worth over $568.7 million in total.
Dividend Yield as of August 5: 7%
Share Price as of August 5: $7.71
Barclays PLC (NYSE:BCS) is a London-based multinational universal bank that provides retail and investment banking services to its consumers. In the first half of FY23, the company's profit came in at £3.11 billion, up 26% from the same period last year. However, its total income of £9.8 billion fell by 2% on a year-over-year basis. Its cash and balances at central banks grew to £35.2 billion due to increased investments in debt securities in Treasury.
Barclays PLC (NYSE:BCS), one of the best dividend stocks on our list, pays a semi-annual dividend of $0.237 per share. This dividend showed a 125.7% hike from its previous dividend. The stock has a dividend yield of 7%, as of August 5.
The number of hedge funds tracked by Insider Monkey reported having stakes in Barclays PLC (NYSE:BCS) stood at 15 in Q1 2023, up from 14 in the previous quarter. These stakes have a total value of nearly $179 million.
Dividend Yield as of August 5: 7.74%
Share Price as of August 5: $7.34
FAT Brands Inc. (NASDAQ:FAT) is a California-based restaurant company that operates and licenses a portfolio of fast-casual and casual dining restaurant brands. The company was a part of 2 hedge fund portfolios at the end of the first quarter of 2023, according to Insider Monkey's database. The stakes owned by these elite funds have a total value of over $5 million.
FAT Brands Inc. (NASDAQ:FAT) reported its second-quarter earnings on August 3 and posted revenue of $106.8 million. The revenue showed a 4% growth from the same period last year. Its cost of restaurant and factory revenues grew by 19% year-over-year to $9.7 million.
FAT Brands Inc. (NASDAQ:FAT) started paying dividends in 2018 and suspended its payouts temporarily in 2020 due to the pandemic. However, it resumed its payments in 2021, raising them for two consecutive years. It currently pays a quarterly dividend of $0.14 per share. With a dividend yield of 7.74% as of August 5, FAT is one of the best dividend stocks under $20.
Dividend Yield as of August 5: 7.94%
Share Price as of August 5: $7.01
Hennessy Advisors, Inc. (NASDAQ:HNNA) is an American capital market company that primarily focuses on managing mutual funds and other investment products. The company operates as an asset manager and offers a range of investment options for individual and institutional investors.
Hennessy Advisors, Inc. (NASDAQ:HNNA) is one of the best dividend stocks on our list as it has been making regular dividend payments to shareholders since 2005. It pays a quarterly dividend of $0.1375 per share and has a dividend yield of 7.94%, as recorded on August 5.
At the end of Q1 2023, Jim Simons’ Renaissance Technologies was the only stakeholder of Hennessy Advisors, Inc. (NASDAQ:HNNA), owning stakes worth over $630,000.
Dividend Yield as of August 5: 8.13%
Share Price as of August 5: $8.39
An American fashion retailer, The Cato Corporation (NYSE:CATO) is next on our list of the best dividend stocks under $10. The company operates fashion retail stores and also offers women's apparel and accessories, targeting value-conscious shoppers.
The Cato Corporation (NYSE:CATO) currently pays a quarterly dividend of $0.17 per share and has a dividend yield of 8.13%, as of August 5.
According to Insider Monkey's database of Q1 2023, 13 hedge funds owned stakes in The Cato Corporation (NYSE:CATO), the same as in the previous quarter. The total value of these stakes is over $16 million. With over $2.8 million worth of stakes, Gratia Capital was the company's leading stakeholder in Q1.
Dividend Yield as of August 5: 8.49%
Share Price as of August 5: $9.89
Global Medical REIT Inc. (NYSE:GMRE) ranks sixth on our list of the best dividend stocks under $10. The real estate investment trust focuses on acquiring and owning healthcare-related properties in the US. Specifically, the company specializes in investing in medical office buildings (MOBs) and other healthcare facilities.
In the second quarter of 2023, Global Medical REIT Inc. (NYSE:GMRE) reported revenue of $36.3 million, which showed an 8% growth from the prior-year period. At the end of the quarter, it had over $2.4 million available in cash and cash equivalents and its total assets amounted to over $1.3 billion.
On June 9, Global Medical REIT Inc. (NYSE:GMRE) declared a quarterly dividend of $0.21 per share, which was consistent with its previous dividend. As of August 5, the stock has a dividend yield of 8.49%. Other high-yield dividend stocks popular among investors include Altria Group, Inc. (NYSE:MO), Verizon Communications Inc. (NYSE:VZ), and Telephone and Data Systems, Inc. (NYSE:TDS).
At the end of the March quarter of 2023, 9 hedge funds in Insider Monkey's database held stakes in Global Medical REIT Inc. (NYSE:GMRE), down from 11 in the previous quarter. These stakes have a total value of over $5.2 million. Ken Griffin's Citadel Investment Group was the company's leading stakeholder in Q1.
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Disclosure. None. 12 High-Dividend Stocks to Buy Under $10 is originally published on Insider Monkey.
