The U.S. economy has lagged in 2024. While inflation has come down, it has failed to meet the Federal Reserve’s target of 2%. A good way to deal with the negative impact of inflation is through dividend investing.

Dividends are still a major part of how investors make returns from the stock market. Combining promising stocks with regular dividends can help bolster returns over time. Today’s stock market is filled with under-$10 dividend stocks that show promising signs.

To help you get the best bang on your investment, we have curated a list of the top three dividend stocks that are below $10 right now. However, these stocks look promising, and their value could rise soon. With that in mind, investors could invest from the price increase and reliable dividends.

Besides dividends, another factor that makes these stocks shine is that their price looks stable and is growing. Finding a dividend stock gem that offers consistent payouts and appreciation in value is an opportunity you should take advantage of and make good returns.

Here are the best dividend stocks valued at below $10 per share.

Telefonica (TEF)

Telefonica (NYSE:TEF) is one of the world’s biggest mobile network providers and among the main telephone operators. 

It has taken many steps to try and cut down the size of its debt. These moves include major restructuring and acquisitions in Brazil and Germany. Additionally, it has merged its UK telecom business into a joint venture and exited Central America.

The company has faced a lot of challenges in the past three years but has exceeded expectations. This was especially witnessed in 2023 and 2024 when it posted better-than-expected earnings per share.

In 2024, TEF stock has seen some good gains, rising 14% to $4.51 per share, while in the past year, it has gained 6.09%. The dividend yield has been consistently high, above 5% in the past three years and rising by over 7% in recent quarters. As of the latest results, the yield is 7.19%, one of the highest in the stock market.

On top of the high yield, analysts forecast growth for the stock in the coming months. They expect the TEF stock price to rise by an average of 1.55% to $4.60 per share.

The expected increase in the stock price, coupled with some of the highest dividend yields, makes TEF one of the best under-$10 dividend stocks to hold right now. 

Nokia (NOK)

Nokia (NYSE:NOK) is a major telecom and information technology company that was once a leading brand in the mobile phone industry. Today, the company also earns revenue from licensing intellectual property to third parties and is a digital map data vendor.

In its most recent second quarter fiscal 2024 results, Nokia reported net sales declined 19% year-over-year to €4.5 billion. However, the gross margin rose to 43.3%, up over 3% from the previous year. Nokia attributed the drop to better-than-expected results in India the previous year.

Nokia also saw a resurgence in its network infrastructure business, primarily driven by new business in North America. The company forecasts an operating margin of 11.5% to 14.5% in the segment in fiscal year 2024. By fiscal year 2026, Nokia expects an operating margin range of 13% to 16% for the segment.

Nokia’s dividend yield has remained consistent at above 3% in recent quarters. In its most recent quarter, it was 3.66%. 

Nokia stock has also performed quite well in 2024, rising by almost 13% so far. Its current price of $3.84 is above both the 50 and 200-day moving averages of $3.82 and $3.58, respectively. These metrics can signal that a stock is positioned for future growth.

Nokia stock is worth considering, with a generous dividend yield above 3.6% and a stock performance that signals that the stock could rise to a new 52-week high.

Aegon (AEG)

Aegon (NYSE:AEG) is an insurance company that provides savings, pensions, and insurance solutions to over 4 million customers worldwide. The company has recently embarked on various critical changes. They include transforming its U.S. subsidiary, Transamerica, into the leading middle-market life insurance provider.

So far, the transformation has been successful, and they recently won a major award. The company is committed to becoming the leading UK savings and retirement industry player.

Besides its business plans, Aegon has a great capital return program. In a recent announcement, it announced a €1.54 billion share buyback program. A week later, it announced another €200 million share buyback program.

Aegon’s dividend yield has been consistent in recent years, above 5% for the most recent quarters. In the latest quarterly results, the dividend yield stood at 5.43%.

The stock performance is also noteworthy. Since the beginning of 2024, AEG stock has appreciated 11.87%, while in the past year, it has risen 18.92% to $6.35 per share.

As inflation fears abound, holding these under-$10 dividend stocks could prove to hedge against the loss of your portfolio’s value over time.

On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly orindirectly) any positions in the securities mentioned in this article.