10 Best Cheap Dividend Stocks To Buy in 2024
Written by
Daria Uhlig
Edited by
Elizabeth Constantineau
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All good equity investments can make their owners money by appreciating in value over time, but in order to enjoy the profits, you have to sell off some of your position. That’s not the case with dividend stocks, which make regular payments to their shareholders that they can use as income or reinvest right back into their portfolios without selling a single share.
The companies that issue dividends tend to be large, stable and well established, but some smaller companies issue them as well — including companies with stock selling for less than $10 a share. While low-cost stocks are riskier than the blue chips normally associated with dividends, they’re also affordable enough for just about anyone to invest in.
What Are the Best Cheap Dividend Stocks in 2024?
The following is a look at 10 cheap dividend stocks that deliver outsized payments to their shareholders despite their low prices.
| Stock | Share Price | Dividend Yield |
|---|---|---|
| Heritage Commerce Corp (HTBK) | $9.53 | 5.46% |
| UWM Holdings Corp. (UWMC) | $7.36 | 5.43% |
| PHX Minerals Inc. (PHX) | $3.40 | 4.71% |
| Granite Ridge Resources Inc. (GRNT) | $6.31 | 6.97% |
| Global Self Storage Inc. (SELF) | $4.98 | 5.82% |
| Crawford & Co. (CRD-A) | $10.94 | 2.56% |
| Information Services Group Inc. (III) | $3.17 | 5.68% |
| Quad Graphics Inc. (QUAD) | $5.12 | 3.91% |
| Redwood Trust Inc. (RWT) | $7.41 | 9.18% |
| ACCO Brands Corp. (ACCO) | $5.24 | 5.73% |
1. Heritage Commerce Corp (HTBK)
- Stock price as of Oct. 7: $9.53
- Dividend yield: 5.46%
Heritage Commerce Corp is the parent company of Heritage Bank of Commerce, a full-service bank that provides personal and business banking products and services in San Francisco, Los Altos, Palo Alto and other California cities.
2. UWM Holdings Corp. (UWMC)
- Stock price as of Oct. 7: $7.36
- Dividend yield: 5.43%
United Wholesale Mortgage has been the biggest wholesale mortgage lender in America by origination for nine consecutive years.
3. PHX Minerals Inc. (PHX)
- Stock price as of Oct. 7: $3.40
- Dividend yield: 4.71%
PHX Minerals is a natural gas and oil mineral company based in Fort Worth, Texas. It currently owns about 75,000 leased mineral acres located primarily in Texas, Oklahoma, Louisiana, North Dakota and Arkansas.
4. Granite Ridge Resources Inc. (GRNT)
- Stock price as of Oct. 7: $6.31
- Dividend yield: 6.97%
Granite Ridge Resources operates in the oil and gas exploration and production sector, but it doesn’t explore for or produce oil — it invests in production and acreage in U.S. basins. Its portfolio includes large and small, private and public companies as well as acreage in diverse locations.
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5. Global Self Storage Inc. (SELF)
- Stock price as of Oct. 7: $4.98
- Dividend yield: 5.82%
Global Self Storage is a real estate investment trust that owns and/or manages 13 self-storage facilities, most of which are located in the eastern U.S. The company has paid dividends every year since its founding in 1983.
6. Crawford & Co. (CRD-A)
- Stock price as of Oct. 7: $10.94
- Dividend yield: 2.56%
Crawford originally operated as a claims adjustment company before branching out into claims referrals, risk management and catastrophe support, managed repair and other services. The company is also an insurance brokerage.
7. Information Services Group Inc. (III)
- Stock price as of Oct. 7: $3.17
- Dividend yield: 5.68%
Information Services Group is a technology research and advisory firm that helps its clients optimize performance while undergoing digital transformation.
8. Quad Graphics Inc. (QUAD)
- Stock price as of Oct. 7: $5.12
- Dividend yield: 3.91%
Quad Graphics is a marketing company that provides a range of solutions — including intelligence, content creation, media placement, messaging, packaging and merchandising — for companies in a diverse range of industries.
9. Redwood Trust Inc. (RWT)
- Stock price as of Oct. 7: $7.41
- Dividend yield: 9.18%
Redwood Trust is another real estate investment trust and one of the country’s largest issuers of jumbo private-label mortgage-backed securities. It also invests in mortgage-backed securities and credit risk transfers from Fannie Mae and Freddie Mac and provides financing to rental property investors.
10. ACCO Brands Corp. (ACCO)
- Stock price as of Oct. 7: $5.24
- Dividend yield: 5.73%
ACCO Brands designs, manufactures and markets branded consumer, business and academic products, including Mead composition notebooks and Swingline staplers. The company owns about 1,000 brands in total.
Can You Get Rich Off Dividends?
You’re more likely to get rich by investing in growth stocks, which have the potential for rapid and dramatic appreciation, than by pursuing the highest dividends possible.
Big tech companies, for example, typically don’t pay dividends because they reinvest all available cash back into the company to grow as fast as they can. When successful, the result is rapid stock appreciation that makes shareholders wealthy along the way.
Dividend investors, on the other hand, are typically after steady, predictable income over time.
Although it seems counterintuitive, the stock with the highest dividend is not always the best dividend stock. When a dividend yield is artificially high, it could indicate that the company is desperate to lure investors because it is in financial distress or some other kind of trouble.
That said, the companies listed above all have more going for them than cheap share prices and high dividends. UWM Holdings Corp., for example, has been the nation’s largest wholesale mortgage lender for nearly a decade, and it could be a good fit for your portfolio.
How Can You Get $5,000 a Month in Dividends?
In order to earn $5,000 per month in dividends, you’d have to earn a 10% monthly dividend on $50,000 worth of shares, a 1% dividend on $500,000 or a 0.1% dividend on $5 million.
Note, however, that most companies pay dividends on a quarterly basis. In that case, you’ll usually have to divide a company’s dividend by three to get the monthly amount.
What Are 3 Dividend Stocks To Buy and Hold Forever?
Besides cheap dividend stocks, other dividend stocks worthy of a permanent place in your portfolio tend to be Dividend Aristocrats, which have long histories of steadily increasing dividend payments. The cream of this crop are called Dividend Kings, and they include Procter & Gamble, Colgate-Palmolive and Coca-Cola — all suitable for holding forever.
Andrew Lisa contributed to the reporting for this article.
Data is accurate as of Oct. 7, 2024, and is subject to change.
