Top Dividend Plays Under $10

Many investors look for stocks that trade under $10 a share because the potential percentage gains can be substantial. However, with recent significant market drops, many investors like the idea of receiving a dividend to provide them with an additional return beyond the capital gains and some stability from the income.

Stockpickr has reviewed the list of the stocks that sell for less than $10 a share and extracted the top low-priced stocks with yields above 3% in the Top-Yielding Stocks Under $10 Per Share.

One of the higher-yielding stocks is Cedar Shopping Centers(CDR Quote), a real estate investment trust, or REIT, that pays a dividend of 9.2%. This company develops, owns and operates shopping centers. It just released its guidance for 2008 and reported that it's expecting earnings to be between 33 cents and 37 cents a share. The Thomson First Call analyst consensus is 36 cents a share. The stock has a price-to-earnings (P/E) ratio of 32 and a P/E-to-growth (PEG) ratio of 5.2.

Cedar also appears in an interesting Stockpickr portfolio called So, You Want Dividends?, a portfolio from March that lists stocks with "big dividends and nice growth prospects." The portfolio also includes Brandywine Realty Trust(BDN Quote), which pays 10.7%, CPFL Energia(CPL Quote), at 8.5%, and Energy Transfer Partners(ETP Quote), at 8.7%. ...