In this week’s episode of State of the Market, Chief Income Strategist Marc Lichtenfeld uncovers three dividend payers that each trade for less than $10.
One master limited partnership, one telecommunications innovator and one real estate investment trust, these three inexpensive powerhouses offer yields as high as 14% and exposure to three different sectors.
But investors who shop the Nasdaq’s discount rack have an important responsibility beyond discovering the market’s best bargains… They also have to determine whether the payouts these companies offer are sustainable.
They can do this using the same tools that Marc uses each week in Safety Net to assess the dividend safety of some of our readers’ most popularly requested stocks.
As Marc explains in this week’s State of the Market, usually yields as high as 14% come with flashing red warning lights. These might be declining free cash flow, a prolonged history of dividend cuts or soaring debt levels that linger unaddressed.
If any of these describe your favorite picks – regardless of price – steer clear.
The $10-and-under crowd, excluding the companies that pay less than 4%, has 117 members. Of those 117, the three that Marc has singled out this week have some of the most promising yields…
So if you’re looking for a new and low-cost place to put some money to work…