A low share price isn’t always a sign of weakness in cheap stocks. Sometimes, it’s actually a gift — doubly so when you’re talking about low-priced dividend stocks.
In some cases, cheap stocks merely priced in the single-digit-dollar range when they went public. Other times, cheap stocks might have sold off to a point where there’s too much value — and too much chance of a turnaround — to ignore.
In any case, cheap stocks can have big upside, and they’re certainly easy to buy in bulk. After all, at $540 a share, how much Apple (AAPL) stock can you load up on?
Like small-cap stocks, cheap stocks often get less interest from analysts, the media and Wall Street. That increases the odds that these cheap stocks are mispriced in your favor.
There’s an even stronger case to made for cheap stocks that pay competitive dividends. Not only do they possess the attributes cited above, but they offer a steady stream of better-than-average income at a time when yields is awfully hard to come by.
With that in mind, here are five of the best cheap dividend stocks you can buy — four of which trade for less than $10, and one that’s just some pocket change more.