In this article, we will take a look at some of the best dividend stocks under $10.
Investors often favor dividend stocks for their long-term potential, with their appeal stemming from the consistent growth they tend to deliver over time. Ed Yardeni, the President of Yardeni Research, Inc., stated the following about dividends:
“Dividends are like plants: Both grow. But dividends can grow forever, while the size of plants is limited.”
Dividend stocks are experiencing renewed interest today as a means to return value to shareholders. In 2022, companies in the broader market paid out a record $565 billion in dividends—the highest amount ever recorded. This comes at a time when interest rates are structurally higher for the first time in decades, making the era of ultra-low borrowing costs seem like a thing of the past. Between 2018 and 2022, investors also weathered three bear markets, each marked by a drop of 20% or more.
As some of the biggest companies have grown to enormous sizes —both in terms of revenue and market cap—their ability to sustain high growth rates has naturally declined. Despite slower growth prospects, these companies remain highly profitable, generating more cash than they can effectively reinvest because they are returning it to shareholders through dividends. This is why more and more companies have initiated their dividend policies. In 2024, major tech companies joined the dividend club in an effort to offer both growth and value to shareholders. The tech giants, though offering low yields today, managed to return billions through dividends last year, which is a clear indication of their strong commitment to rewarding investors.
S&P Global also highlighted this trend in a recent report, noting that global dividend growth saw a sharp rise in 2024, climbing by an impressive 8.5%. The surge was especially strong in Asia-Pacific, where government policies encouraged companies to shift from annual to semiannual dividend distributions. At the same time, the US market experienced a wave of new and reinstated dividend payments, largely fueled by companies in the technology, media, and telecommunications (TMT) sectors.
With the market taking a volatile turn, dividend stocks are in the green, offering a sense of reassurance to investors. The Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, is down by over 4% since the start of 2025, compared with an over 10% decline in the broader market. As a result, analysts remain optimistic about dividend prospects in 2025. According to S&P Global, US total dividend payouts are expected to rise by 7% next year, reaching approximately $784 billion. In recent years—and continuing into the current fiscal year—sectors like energy, pharmaceuticals, financial services, banking, and REITs have played a major role in driving this growth. Given this positive outlook, we will take a look at some of the best dividend stocks under $10 with high yields.
Our Methodology
For this article, we screened for dividend stocks under $10, as of the close of April 7. From that list, we identified stocks with high dividend yields and picked 13 stocks with dividend yields over 4%, as recorded on April 8. The stocks are ranked according to their dividends. While high-yield dividend stocks are sometimes seen as signs of weakening financial health, we focused on selecting companies with solid dividend track records and strong balance sheets.
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13. Lloyds Banking Group plc (NYSE:LYG)
Dividend Yield as of April 8: 4.78%
Share Price as of the Close of April 7: $3.34
Lloyds Banking Group plc (NYSE:LYG) is a British financial services company that provides services to retail and commercial customers. In FY24, the company posted an underlying net interest income of £12.8 billion, marking a 7% decline due to a reduced banking net interest margin of 2.95%, while average interest-earning banking assets remained steady at £451.2 billion. In the fourth quarter alone, underlying net interest income edged up 1% to £3.3 billion, supported by a slightly higher net interest margin of 2.97%.
Lloyds Banking Group plc (NYSE:LYG) also reported that underlying loans and advances to customers rose by £9.4 billion over the year, including a £2.1 billion increase in the fourth quarter, bringing the total to £459.1 billion. This growth was mainly driven by a £6.1 billion rise in UK mortgage lending.
In addition, customer deposits climbed by £11.3 billion over the year to reach £482.7 billion, fueled by strong growth in Retail deposits, while Commercial Banking deposits remained stable. The fourth quarter saw particularly robust momentum, with deposits increasing by £7.0 billion.
In its earnings report, Lloyds Banking Group plc (NYSE:LYG)’s management has proposed a final ordinary dividend of 2.11 pence per share, bringing the total dividend for 2024 to 3.17 pence per share. This represents a 15% increase from the previous year and aligns with the Group’s ongoing commitment to a progressive and sustainable dividend policy. With a dividend yield of 4.78%, as of April 8, LYG is one of the best dividend stocks on our list.
12. NL Industries, Inc. (NYSE:NL)
Dividend Yield as of April 8: 4.86%
Share Price as of the Close of April 7: $7.29
NL Industries, Inc. (NYSE:NL) is a Texas-based lead smelting company and operates in the component products industry. The company reported a net income of $16.5 million, or $0.34 per share, for Q4 2024, up from $7.6 million, or $0.16 per share, in the same period a year earlier. Its majority-owned subsidiary, CompX International, posted fourth-quarter net sales of $38.4 million, down from $43.2 million in Q4 2023. The decline in sales was mainly due to reduced demand for Security Products from a government security client. However, stronger Marine Components sales to the towboat and government sectors partially offset this.
NL Industries, Inc. (NYSE:NL) remained a reliable option from a dividend point of view. In FY24, the company’s dividend income increased by $1.4 million compared to 2023 due to higher average interest rates on invested balances. On February 27, the company declared a 12.5% hike in its quarterly dividend to $0.09 per share. This was its second consecutive year of dividend growth. The stock has a dividend yield of 4.86%, as of April 8.
At the end of Q4 2024, 4 hedge funds tracked by Insider Monkey held stakes in NL Industries, Inc. (NYSE:NL), the same as in the previous quarter. The consolidated value of these stakes is nearly $2 million. Among these hedge funds, Renaissance Technologies owned the largest stake in the company.
11. Amcor plc (NYSE:AMCR)
Dividend Yield as of April 8: 5.97%
Share Price as of the Close of April 7: $8.92
An Australian packaging company, Amcor plc (NYSE:AMCR) ranks eleventh on our list of the best dividend stocks with high yields. In fiscal Q2 2025, the company reported a revenue of $3.24 billion, showing a modest dip of 0.3% from the same period last year. Despite this, shipment volumes rose by 2.3% year-over-year, continuing the positive trend from the 1.6% increase in the first quarter and marking the fourth straight quarter of volume growth. On a comparable constant currency basis, adjusted EBIT climbed by around 5% to $363 million.
Looking ahead, Amcor plc (NYSE:AMCR) maintained its full-year guidance, expecting adjusted EBIT growth of 3% to 8% in constant currency terms. It also aims to keep its leverage ratio at or below 3x by the end of fiscal year 2025 and is targeting an adjusted free cash flow between $900 million and $1 billion. Notably, recent insider buying activity over the past six months signals strong internal confidence in the company’s future.
During the first half of the fiscal year 2025, Amcor plc (NYSE:AMCR) generated $228 million in operating cash flow, a solid improvement from $159 million in the same period last year. The company continues to reward shareholders with a quarterly dividend of $0.1275 per share. Moreover, it has raised its payouts for 41 consecutive years. The stock supports a dividend yield of 5.97%, as of April 8.
