Wednesday, June 13, 2012

Five Stocks Under $10

According to research published in The Journal of Portfolio Management in 1980, low price stocks on a risk adjusted basis outperform high price stocks, by a substantial amount. The study defines a low price stock as one that sells for $10 or less.

Many investors like low priced stocks, but to reduce risk, some investors look for those that pay dividends. Dividends can return your capital faster, which helps to lower risk. has a list of high yield stocks below $10 a share, turning up over a hundred different companies.

One example is Telular Corp. (WRLS), a Chicago, Illinois based provider of wireless network products and services, which currently sells for less than eight dollars a share. The stock trades at 15 times forward earnings and yields 5.7%. The latest quarterly earnings were up almost 1000%, on an incredible 58% rise in revenues. The stock is trading at less than $8 a share.

KSW, Inc. (KSW) is a heating, ventilating, and air conditioning company that yields 5.2%, and trades at 7.5 times forward earnings. The stock is at less than $4 a share.

Astro-Med Inc. (ALOT) is a producer and marketer of specialty printers and data acquisition and analysis systems. The price earnings ratio is 17 and the yield is 3.5%. The stock is currently $8 a share.

The gold mining company, Nevsun Resources Ltd. (NSU), trades at 11 times forward earnings and yields 2.8%, based on last year's dividend payments. The stock trades at less than $4 a share.

MicroFinancial (MFI) is a commercial finance company that provides equipment leasing and rental services, and other financing services. The stock, which currently sells for less than $8 per share, yields 3.5% and trades at 9 times earnings. Last November, the company increased its quarterly payout by 20%.

To access a free list of over 100 high yield low price stocks, go to

Disclosure: Author didn't own any of the above at the time the article was written.


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