2 “Strong Buy” Dividend Stocks Under $10 With at Least 15% Dividend Yield

Every investor seeks to reap the rewards of their stocks; otherwise, they wouldn’t be involved in the markets. However, discovering the ideal investment, one that will yield profits, can prove to be a challenge, particularly in today’s market environment.

To ensure solid returns, investors can follow two straightforward strategies. The first is to buy low and sell high. That is, find a cheap stock with sound fundamentals and good prospects for growth – and buy in to take advantage of the growth potential. The second strategy is to invest in dividend stocks, which provide regular payouts, allowing investors to earn returns on their investment.

Keeping these strategies in mind, we’ve used the TipRanks database to identify two stocks that offer dividends of at least 15% yield – that’s more than 7x higher than the average yield found in the markets today. Both of these stocks have received a Strong Buy rating and have positive analyst reviews on record. And all that for a cost of entry below $10. Let’s take a closer look.

Redwood Trust (RWT)

The first stock we’ll look at is Redwood Trust. This real estate investment trust, or REIT, has originally based its portfolio on residential mortgages and loans but has expanded into business purpose bridge loans. Of the $3.7 billion in Redwood’s ‘economic interest’ portfolio, 33% consists of business purpose bridge loans, 14% consists of multifamily residential developments, and 12% consists of residential jumbo securities. Since 1994, the company has been a provider of credit and financing for homebuyers.

The combination of high inflation and rising interest rates have put pressure on Redwood over the past year. Mortgage rates are now just over 7%, more than double the 3.2% average rate that prevailed early last year, and as a result, business has slowed for mortgage backers.

A look at Redwood’s last quarterly release, for 1Q23, shows the softness due to current conditions, but also some of the company’s strengths. At the top and bottom line, Redwood missed expectations in Q1. Revenues, based on net…

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