Retail investors typically only have a small amount of capital to start investing with. Accordingly, seeing all these popular large-cap stocks trading well over $100 per share can seem daunting. Nevertheless, there are plenty of stocks under $20 to consider investing in, that may provide similar upside to the more expensive names.
Many companies that trade at or below the $20 per share mark still trade in large volume, have decent dividend yields, and even better long-term potential. Below are a few stocks that reach those criteria. These are companies I think investors should consider holding in their portfolio for the long-term.
| MPW | Medical Properties Trust | $8.25 |
| F | Ford | $12.39 |
| AAL | American Airlines | $14.87 |
Medical Properties Trust (MPW)
Medical Properties Trust (NYSE:MPW) is a real estate investment trust (REIT) that was founded in 2003 in Birmingham, Alabama. The company develops and acquires real estate assets, with a focus on medical facilities. The REIT holds over 400 properties globally in its portfolio, with the entire REIT currently valued around $5 billion. The company’s portfolio is comprised of acute care hospitals, behavioral health clinics, and rehabilitation centers.
In April, Medical Properties Trust reported first quarter earnings, which showed a disappointing year-over-year revenue decline of 15%. Additionally, the company acquired no new property for the first quarter. However, the REIT’s management team did predict acquisitions in Europe for the second quarter.
Over the past year, rising interest rates have hit the real estate market hard. And Medical Properties Trust is no different. As a result, they have seen recent revenue and share price decline. But, a large footprint of medical facilities and projected acquisitions, and a potential rebound in the real estate market, make it a stock to keep an eye on. Alongside first-quarter earnings, the REIT announced a quarterly dividend of $0.29 per share.
Ford (F)
Ford (NYSE:F) is perhaps one of the best-known auto manufacturers worldwide. The company produces a wide range of vehicles, but is most known for its line of pickup trucks and, more notably, its new electric truck, the Ford F-150 Lightning. They also own the brand Lincoln, their luxury line of vehicles, and offer auto financing and parts servicing.
The company reported its first quarter earnings in early-May. Net income came in at $1.6 billion, supported by impressive revenue growth of 20% on a year-over-year basis.
Ford has been heavily involved in the EV market as of late, releasing key models such as the Ford Lightning F-150, Mustang Mach-E, electric transit vans, and the electric Explorer crossover, which was announced in March. Additionally, Ford’s stock price saw a 10% jump last week following the news of their partnership with Tesla (NASDAQ:TSLA). This partnership will allow Ford customers to have access to Tesla’s supercharger infrastructure starting in spring 2024.
With a decent grasp on the EV market, relative stability, and a quarterly dividend of $0.15 per share, Ford is a stock to hold onto.
American Airlines (AAL)
American Airlines (NASDAQ:AAL), Headquartered in Fort Worth, Texas, is an international air carrier offering cargo and passenger transportation services. In 2015 the stock was added to the S&P 500 Index.
In April, the company released its first quarter earnings, posting a total revenue increase of 37% and earnings per share growth of 2 cents on a year-over-year basis. The airline industry has seen continued deemed for travel following the years of the pandemic. Thus, it shouldn’t be a surprise that American Airlines has seen increased strength in its long-haul flight segment. The company saw nearly half a million record flights in the first quarter. This led to a strong forecast of earnings per share in Q2 to come in between $1.20 and $1.40 per share.
The airline industry is performing very well due to the strong travel demand, with growth in international and domestic air travel expected to continue. American Airlines is a key company in the airline industry, and is my top pick for investors looking for cheap stocks in the airline space.
On the date of publication, Noah Bolton held a long position in F stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
