7 Best High-Dividend Stocks Under $10 That Won’t Break Your Bank

Are you hunting for dividend stocks but don’t have thousands to invest? I’ve been there too! The good news is you don’t need deep pockets to start building passive income through dividends. In this article, I’ll share some amazing high-dividend stocks that trade under $10 per share but offer impressive yields that can help grow your investment portfolio.

Why Consider Low-Priced High-Dividend Stocks?

Before diving into specific stocks let’s understand why these investments might be worth your attention

1. More shares for your money – When stocks trade at lower prices, you can purchase more shares with the same investment amount
2. Higher percentage returns – Small price movements in low-priced stocks can lead to larger percentage gains
3. Psychological satisfaction – There’s something satisfying about owning hundreds of shares instead of just a few
4. Steady income – Regular dividend payments provide dependable cash flow regardless of market volatility
5. Inflation hedge – Dividend income can help combat the effects of inflation on your purchasing power

However, it’s important to note that low-priced stocks often come with higher risks Many stocks trading under $10 are small-cap companies that may experience more volatility than larger firms They might also have higher borrowing costs and operating expenses.

7 Best High-Dividend Stocks Under $10

Let’s explore seven promising dividend stocks that won’t drain your bank account:

1. Orchid Island Capital Inc. (ORC)

Forward Dividend Yield: 17.7%

Orchid Island Capital is a $758 million mortgage REIT (mREIT) that invests in government-backed mortgage bonds rather than physical properties. The company focuses exclusively on residential mortgage-backed securities (RMBS) secured by first mortgages on single-family homes.

While ORC has faced challenges in the high-interest rate environment, it has maintained its impressive forward annual dividend of $1.44 per share. This has resulted in that eye-popping yield above 17%!

2. Horizon Technology Finance Corp. (HRZN)

Forward Dividend Yield: 14.2%

With a market cap of $374 million, Horizon Technology Finance is a specialty finance company operating as a business development company (BDC). HRZN provides secured loans to venture capital-backed companies in high-growth sectors like information technology, healthcare information services, and fintech.

The company offers financing to growth-stage companies through structured debt with equity components like warrants. This strategy allows them to earn high current interest rates while potentially benefiting from significant gains when venture-backed firms go public.

3. Barings BDC Inc. (BBDC)

Forward Dividend Yield: 11.0%

Barings is a $1 billion business development company specializing in providing customized financing to middle-market private companies approaching the end of their funding lifecycles. The firm makes debt and equity investments in small private companies preparing for mergers, acquisitions, or going public.

BBDC has the expertise to design tailored financing solutions for clients, focusing on mezzanine debt, preferred equity, and leveraged buyout financing. Its ideal clients have EBITDA between $10 million and $75 million, primarily in manufacturing, technology, and business services sectors.

4. Ford Motor Co. (F)

Forward Dividend Yield: 7.7%

Ford might surprise you on this list! This iconic American automaker with a market cap over $38 billion has seen its share price dip below $10, creating an opportunity for dividend investors.

Ford manufactures and sells a wide range of vehicles including trucks, cars, and SUVs to both commercial and individual customers. The company is also strategically expanding into the electric vehicle market with models like the Mustang Mach-E, F-150 Lightning, and E-Transit commercial van.

Wall Street expects Ford to generate approximately $170 billion in revenue in 2025, with growth to about $175 billion in 2026. Beyond vehicle sales, Ford generates substantial revenue from its parts, service, and financial divisions.

5. LXP Industrial Trust (LXP)

Forward Dividend Yield: 5.7%

LXP Industrial Trust is a $2.7 billion REIT focused on the industrial sector. The company specializes in acquiring, developing, and operating high-quality, single-tenant industrial properties, particularly large warehouses and distribution centers in key U.S. markets.

Geographically, LXP concentrates on the business-friendly Sunbelt region and Midwest, which have growing populations contributing to the online retailing boom. This trend is fueling demand for warehouses and distribution centers, benefiting LXP and similar industrial REITs.

The company owns more than 117 class-A properties with over 58 million square feet of rentable space across 40 states, with particular presence in Texas, South Carolina, Georgia, Ohio, and Illinois.

6. Viatris Inc. (VTRS)

Forward Dividend Yield: 5.1%

Viatris is a healthcare powerhouse formed in 2020 by the merger of Mylan and Pfizer’s Upjohn division. With a market cap exceeding $11 billion, the company operates in more than 160 countries selling branded drugs, generics, biosimilars, and over-the-counter medicines.

The company has a diverse portfolio of over 1,400 approved drugs, with concentrations in cardiovascular, oncology, dermatology, and ophthalmology. While blockbuster drugs like Viagra and Lipitor provide reliable revenue, Viatris is also developing promising new treatments. Its late-stage clinical trial drug Selatogrel, a fast-acting, self-administered home heart attack treatment, could be a game-changer.

7. Primis Financial Corp. (FRST)

Forward Dividend Yield: 4.1%

Small regional banks like Primis Financial are becoming increasingly attractive in today’s financial market. With a market cap of just $239 million, FRST is small enough to be nimble but large enough to provide cutting-edge banking technology and comprehensive financial products.

Headquartered in McLean, Virginia, Primis operates through its subsidiary, Primis Bank, offering both traditional branch banking and modern digital banking services. The company has 24 physical branches in Virginia and Maryland while maintaining high-level personal service across all its banking channels.

Comparison Table of High-Dividend Stocks Under $10

Tips for Investing in Low-Priced Dividend Stocks

If your thinking of adding these stocks to your portfolio, here’s some advice I’ve learned from my experience:

• Diversify your holdings – Don’t put all your money into just one or two high-yield stocks
• Research the company thoroughly – Understand the business model and potential risks
• Check dividend sustainability – Look at the payout ratio and company’s cash flow to ensure dividends can be maintained
• Consider total return potential – Don’t focus solely on dividend yield; growth prospects matter too
• Be patient – Dividend investing works best with a long-term perspective

Risks to Be Aware Of

While these high-dividend stocks under $10 offer attractive yields, they’re not without risks:

• Dividend cuts – Companies facing financial difficulties may reduce or eliminate their dividends
• Higher volatility – Low-priced stocks often experience more significant price swings
• Limited analyst coverage – Smaller companies may receive less attention from Wall Street analysts
• Sector-specific challenges – Each industry faces unique headwinds that could affect performance

Final Thoughts

Finding high-dividend stocks under $10 can be a great way to build passive income without needing a large initial investment. The seven stocks discussed above offer compelling yields ranging from 4.1% to an impressive 17.7%. However, remember that higher yields often come with higher risks.

I recommend starting with a small position and gradually increasing your investment as you become more comfortable with how these stocks perform. By diversifying across multiple companies and sectors, you can reduce your risk while potentially enjoying substantial dividend income.

Remember, the goal isn’t just high current income but sustainable income growth over time. A balanced approach that considers both yield and quality will serve dividend investors best in the long run.

What’s your favorite high-dividend stock trading under $10? Have you had success with any of the companies mentioned above? I’d love to hear your experiences and thoughts in the comments!

Some of the highest-yielding dividend stocks include Ares Capital (9.5% yield), Main Street Capital (7.5% yield), and Alexandria Real Estate Equities (8.4% yield), but investors should be cautious as a high yield can indicate a declining stock price. Other high-yield options are Verizon Communications (7% yield), Enterprise Products Partners (6.9% yield), and Pfizer Inc.

To make

$\$100$

a month in dividends, you need to invest between approximately

$\$13,800$

and

$\$30,000$

to

$\$41,500$

or more, depending on the dividend yield of your investments. The total amount depends on the annual dividend yield, which you can calculate by dividing the annual dividend by your initial investment.