5 Companies Investors Always Forget Under $10 With Huge Dividends

"Investors love dividend stocks, especially those with high yields, because they provide a substantial passive income stream and offer significant total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. At 24/7 Wall St., we consistently emphasize the potential of total return to our readers."

"We decided to screen our 24/7 Wall St. low-priced dividend stock database, looking for companies that yield 10% or more but are always forgotten by growth and income investors. Five stocks have caught our attention, and once our readers realize they've also overlooked them, it might be time to take a closer look. While not suited for everybody, those trying to build strong passive income streams can do exceptionally well with some of these top companies in their portfolios."

Investors value dividend stocks for passive income and significant total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time, combining income and stock appreciation. Historical data show dividends contributed roughly 32% of S&P 500 total return since 1926, while capital appreciation contributed 68%. A Hartford Funds and Ned Davis Research study found dividend stocks returned an annualized 9.18% from 1973–2023 versus 3.95% for non-payers. A screening of low-priced dividend stocks identified companies yielding 10% or more that are often overlooked. A barbell approach pairing these with blue-chip dividend giants can enhance passive income generation.

Read at 24/7 Wall St.