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10 Cheap Stocks to Buy Now Under $10

Cheap stocks typically have their flaws, but these at least have a few positive traits that make them worth a flyer

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Cheap Stocks to Buy Now – Siliconware Precision Industries (SPIL)

Cheap Stocks to Buy Now - Siliconware Precision Industries (SPIL)Price as of 8/14/14: $7.14

In the age of mobile, old-school semiconductor companies aren’t very popular. But Siliconware Precision Industries (SPIL) has grown a diversified business, serving chipmakers with packaging and testing gear. While its customers are indeed in the telecom and personal computer space, the bottom line is that demand for these kind of chips remains decent — and thus demand for SPIL services is strong even if the company isn’t quite the growth engine it used to be.

Consider that while shares went nowhere from 2010 through 2013, the stock recently gapped up from under $6 in February to a high of about $9 in advance of its annual dividend payment. Many investors bailed out after that dividend capture, but the payment was the highest since 2010, and shares remain up an impressive 20% YTD despite the selloff.

Furthermore, SPIL typically sells off after its dividend, then ramps back up in the early part of the year — meaning that if you purchase now at the bottom, you can enjoy that annual run-up in the winter and spring before next year’s payout.

Back in April, Siliconware Precision was one of 18 companies to receive the 2013 Intel Preferred Quality Supplier award. Intel recognized SPIL because it is committed to “performance excellence and continuous improvement” and for helping Intel enhance their silicon, packaging and test technologies.

It’s not just dividends pushing SPIL higher, however. Q2 revenues jumped 21% year-over-year and the company posted a near-doubling of earnings.

Siliconware isn’t as sexy as a social media or cloud stock. But at about $9 per share, SPIL might be your best bargain in tech right now on the selloff of the last several weeks.

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Article printed from InvestorPlace Media,

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