Some stocks under $10 give monthly dividend income and are popular with income-focused investors.
High yields often come with higher risks, especially in sectors tied to interest rates or lending.
Low prices make it easier to diversify across different sectors like finance, real estate, and services.
Some stocks under $10 offer the chance to earn regular cash payouts through dividends. These dividends are a way for companies to share profits with investors. For people who want to grow their money and receive steady income, dividend-paying stocks can be a useful option, even when starting with a small budget.
Dividend Stocks remain a reliable source of passive income even in volatile market conditions. Many Dividend Stocks under $10 offer surprisingly stable returns and long-term value. Here are five low-cost dividend stocks that stand out for their high yields and low prices.
Dividend Yield: ~20%
Orchid Island Capital buys mortgage-backed securities. It gives dividends every month. The stock price stays between $6 and $7. The dividend yield is around 20 percent, which is very high. But high dividend yield usually means high risk. If interest rates change or the housing market slows down, the company might earn less.
Dividend Yield: ~ 16%
Stocks under $10 are attracting beginner investors looking to build wealth with limited capital. Ellington is similar to Orchid Island. It also invests in mortgage-related assets. The stock trades under $6 and offers a yield of about 16 percent. This stock pays monthly dividends as well. While the income is appealing, price changes and interest rate fluctuations can cause fluctuations.
Dividend Yield: 14%
AGNC is a larger company in the same mortgage investment space. Its shares are priced under $10. It also pays monthly dividends. The current yield is around 14 percent. AGNC is considered more stable than smaller firms in the same sector, which makes it more appealing for long-term investors.
Also Read: Best Dividend Stocks to Hold for Passive Income in India
Dividend Yield: 16%
The Best Cheap Dividend Picks 2025 include lesser-known companies with consistent payout histories. Prospect Capital is a business development company. It lends money to small and mid-sized businesses and earns income through interest payments. Its stock trades around $3 to $4. The dividend yield is close to 16 percent and is paid monthly. Like with other lenders, if borrowers face financial problems, the risk of lower payouts increases.
Dividend Yield: 11%
High Yield Penny Stocks may seem risky, but they’re drawing attention for their aggressive growth potential. Western Union is a global money transfer company. Its stock trades below $10 and offers a dividend yield of about 11 percent. Compared to the others on this list, it is a better-known and more established company. That can make it more stable, even if the yield is slightly lower.
These stocks are cheap, so they are easier to buy for people with a small budget. All of them trade under $10. This makes it possible to buy many shares without spending too much. Many of these stocks pay dividends every month.
This gives steady cash that can be used as extra income or to buy more shares. These companies work in different areas like real estate, lending, and global finance. This allows for better diversification, which helps reduce risk if one sector performs poorly.
Also Read: Top S&P 500 Stocks with High Dividend Yields
Weekend Investment Opportunities often surface in overlooked sectors, offering value buys before Monday trading opens. A high dividend yield may look good, but it can mean the company is facing problems. Some companies may cut their dividends if they make less money.
Stocks under $10 can also change prices more often. Before investing, it is important to check if the company has a history of paying dividends consistently and whether the business is expected to stay strong in the future.
Dividend stocks under $10 give investors a chance to earn high returns without needing a large investment. These five companies offer high yields and have different strengths. Still, high income always comes with some level of risk. It helps to look for companies that have been paying dividends regularly and have a business model that can handle market changes.