Many investors love low price stocks. They believe that the percentage gain potential on these stocks is much greater. In a way, it's true. The potential gain of a stock going from $50 a share to $100 a share is 100%. The potential gain of a stock going from $10 to $100 is 900%. Yet, what is important is what are the chances of getting that potential gain.
In any case, there are thousands of low price stocks to choose from, and many of them pay dividends. This is a good thing, as the dividends can help reduce volatility and returns your capital faster.
Here are four stocks selling for less than ten dollars a share, that have high yields and reasonable price to earnings ratios.
CTC Media (CTCM) is a Russian entertainment company which operates three television networks, and closed at 9.38 per share today. The dividends are paid quarterly and the stock provides investors with a yield of 6.6%. The stock trades at 9.5 times trailing earnings and 10.5 times forward earnings. Earnings rose 9.2% for the latest quarter.
If you would rather not invest in a Russian stock, there is PDL BioPharma (PDLI), based in Nevada, selling at 9.40. The company manages patents and royalties relating to monoclonal antibodies. Trailing price to earnings ratio is 5.4 and forward PE is 4.6. The stock yields 6.1%.
Valley National Bank (VLY) which is a New Jersey based company that trades on the New York Stock Exchange at 9.67 a share, pays dividends quarterly and yields 4.4%. Trailing PE is 14.4 and the forward PE is 15.1.
Star Gas Partners (SGU) is a master limited partnership in heating oil and propane distribution. The stock, which trades at 6.35, yields 5.7%. The stock trades at 8.4 times earnings.
If you enjoy reading about stock lists like this, you should check out the various lists of stocks in various industries at WallStreetNewsNetwork.com. Most of the lists are free.
Disclosure: Author didn't own any of the above at the time the article was written.