Deal or no Deal: 6 Dividend Stocks Under 10 Dollars for Value Investors

James Dennin, Kapitall: Here are 6 stocks under 10 bucks that also have low valuations and pay dividends. 

As some of our readers have pointed out, the stock screens we publish with equities all priced below $5 don't always do so well.

Read more from Kapitall: 3 Rallying, Outperforming Stocks with High Employee Ratings

But this is sort of expected. Stocks in this price range are often so volatile that most institutional investors won't even consider them. And while these lists often yield a big winner or two, the gains made by one are rarely enough to yield a well-performing list as a whole.

So we decided to tweak the formula behind our "Deal or No Deal" column a bit. It's still important to us to search for small caps and growth plays that you may not have heard of – but we also wanted to try more ways to weed out some of the duds. 

Investing ideas

With that in mind I decided to add a couple new screens with longer-term investments in mind. So I raised the price limit to stocks under $10, the limit used by many professional investors. I also added a limit to market capitalization, to make sure I was only looking at companies with a market cap of $100 million or more.

For this screen in particular I added some positive indicators that value investors like because they lend themselves to longer holding periods. These included a positive dividend yield and a low price of profit (forward P/E) below 15. 

Dividend yields are particularly useful to consider when you plan on holding stocks for a long time, because you can re-invest your dividend payments, allowing your holdings to gather value faster. 

My screen turned up six stocks under 10 dollars.

Click on the interactive chart below to view data over time.

Do you see investing opportunities in any of these moderately priced dividend stocks? Use the list below to begin your own analysis. 

1. Advanced Semiconductor Engineering Inc. ( ASX): Provides semiconductor packaging and testing services for semiconductor companies. Market cap at $6.96B, most recent closing price at $4.80.

Forward P/E: 11.16

Dividend Yield: 2.92%
 

 

2. DRDGOLD Ltd. ( DRD): Operates as a surface gold retreatment company in South Africa. Market cap at $138.40M, most recent closing price at $3.69.

Forward P/E: 10.85

Dividend Yield: 5.42%
 

 

3. Entravision Communications Corporation ( EVC): Operates as a diversified Spanish-language media company. Market cap at $531.52M, most recent closing price at $6.09.

Forward P/E: 11.76

Dividend Yield: 1.64%
 

 

4. The Female Health Company ( FHCO): Manufactures, markets, and sells the FC2 female condoms in the United States and internationally. Market cap at $243.31M, most recent closing price at $8.50.

Forward P/E: 14.17

Dividend Yield: 3.29%
 

 

5. Hallador Energy Company ( HNRG): Engages in the production and sale of steam coal in the United States. Market cap at $232.52M, most recent closing price at $8.06.

Forward P/E: 9.95

Dividend Yield: 1.99%
 

 

6. MicroFinancial Inc. ( MFI): Operates as a specialized commercial finance company that provides microticket equipment leasing and rental, and other financing services in the United States. Market cap at $124.43M, most recent closing price at $8.55.

Forward P/E: 10.82

Dividend Yield: 3.27%

 

 

( List compiled by James Dennin, a Kapitall Writer. Analyst ratings sourced from Zacks Invesment Reports, all other data sourced from Finviz.)

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