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) - Get Report

, 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) - Get Report

, which pays 10.7%,

CPFL Energia

(CPL) - Get Report

, at 8.5%, and

Energy Transfer Partners

(ETP)

, at 8.7%.

Another under-$10 stock,

Sinclair Broadcast Group

(SBGI) - Get Report

, has a yield of 8.3%. Shares of this Maryland-based TV broadcasting company closed Tuesday at $8.37, and the stock has seen some recent insider buying. Earlier this month, the CEO bought 123,000 shares for prices between $7.90 and $7.99 a share. The vice president bought 98,689 shares for prices between $7.89 and $8. The stock has a P/E of 35 and a PEG of 2.5.

Sinclair also shows up on the

Barron's Insider Purchases 1-12-2008

portfolio, which also lists

NuStar Energy

(NS) - Get Report

, which yields 7.1%,

Hugoton Royalty Trust

(HGT)

, at 6.2%, and

O'Charley's

( CHUX), with a 2% yield.

United Microelectronics

(UMC) - Get Report

is a stock that sells for less than $4 and yields 6%. This Taiwan-based manufacturer of semiconductors reported that net sales for December 2007 were up 1.1% year over year. The stock has a P/E of 15 and a PEG of 0.9.

The stock is owned by

Polygon Investment Partners

, a global private investment company with over $1.35 billion under management. Polygon also owns shares of

Halliburton

(HAL) - Get Report

, which yields 1%,

General Motors

(GM) - Get Report

, with a 4.2% yield, and

Sierra Pacific Resources

( SRP), which has a 1.9% yield.

To see the complete list of top stocks below $10 with high yields, check out the

Top-Yielding Stocks Under $10 Per Share

at Stockpickr.com.

At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

James Altucher is president of

Stockpickr

LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for the

Financial Times

and the author of

Trade Like a Hedge Fund

,

Trade Like Warren Buffett

and

SuperCa$h

. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;

click here

to send him an email.

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