Dividends4Life: Undervalued Dividend Stocks Under $10

Dividend Growth Stocks News

Undervalued Dividend Stocks Under $10

Posted by D4L | Wednesday, June 20, 2012 | | 0 comments »

Just because something is low cost, doesn’t necessarily mean its bad, nor does it signal a bargain. When it comes to stock prices, it’s an investor’s job to determine if the low price is the fair price, or if shares are being unfairly valued. One definitive upside to a low price stock is that a small price increase equals a big percent change relative to their high priced peers. If a stock bought at $2 goes up to $4, that’s a 100% percent change. Similarly, if it falls from $4 to $2, you’ve lost 50% of your investment. Risk works both ways.

An investor with limited funds may find that low-price stocks make it easier to diversify a portfolio. Instead of purchasing shares of one firm priced at a higher rate, the prospect remains to buy shares of multiple companies if that price is cheaper. Below are 4 stocks that are priced below $10, offer dividend yields between 2-10% (a sign of profitability, and capped at 10% for stability), and market cap above $300 million: 1. PDL BioPharma, Inc. (PDLI), 2. World Wrestling Entertainment Inc. (WWE), 3. Hot Topic Inc. (HOTT)and 4. AEGON N.V. (AEG).

Source: Kapitall

Related Articles:
- The 2012 Dividend Achievers
- Why Dividends Matter
- 2011 Was A Great Year For Dividend Stocks
- Utilities Stock Funds Were 2011's Bright Star
- 2011 Dividend Increases Nearly Doubled, and 7 Dividend Stocks that Led the Way



Post a Comment

Note: Only a member of this blog may post a comment.