Sometimes, the best deals on the market offer real growth potential and a decent dividend yield. That’s because these types of securities offer a dual-factor approach to appreciating by providing returns in stock growth and a compounding dividend. Yet, finding these types of dividend stocks under $10 can be challenging as the media often underreport them. Beyond this, companies that offer such yields to attract investors are usually in quieter, less volatile sectors than the popular tech and biotech industries.

Moreover, there’s inherent risk prevalent among stocks with such low valuations. Sometimes, these stocks experience low trading volumes and do not have the significant cash reserves necessary to weather a financial storm. However, occasionally, a dividend-yielding company in a strong niche presents itself as a strong investing opportunity. As such, here are three dividend stocks under $10 to consider for a cheaper entry into the compounding strength of dividends.

United Microelectronics (UMC) Semiconductors chips and blurred UMC United Microelectronics Corporation logo.

Source: Ascannio via shutterstock

A Taiwanese semiconductor foundry often overshadowed by more prominent giants, United Microelectronics (NYSE:UMC) has exhibited rough performance year to date. The company’s stock is down nearly 9% since January, with several volatile ups and downs throughout the year. However, it offers a 6.14% dividend yield, up over 200% over five years. That’s nothing to scoff at when considering its sub-$10 price.

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The company is a technical semiconductor manufacturer specializing in radio frequency devices. As a result, its technologies have served a broad range of markets. Yet, this strategy has not resulted in growth that drives investor fervor. Instead, the company’s net income decreased by over 30% year-over-year in the first quarter of 2024.

Now, its second-quarter results will be released on July 31, so if it improves this performance, it could potentially start a bull run for the stock.

Enel Chile (ENIC) Wooden tiles spelling out "dividend" displayed on tip of a colorful bar chart listing products "A" through "E"

Source: shutterstock.com/Athitat Shinagowin

One of the most vertically integrated energy companies in Chile, Enel Chile (NYSE:ENIC), has seen relatively stable growth over the last year as it expands its energy sales across its home country. For investors, a play in a stock like ENIC requires confidence in the current trajectory of the country’s economy. Thankfully, the World Bank has recognized Chiele as one of South America’s most stable and upward-trending countries.

Investing in one of its major energy companies, which focuses on traditional and green energy generation, could be a lucrative long-term play. The company’s prospects for both generation and sales will grow alongside the country’s development.



Pair this potential with ENIC’s 33.28% revenue growth year-over-year for the second quarter of 2024 and 482% growth in net income, and the stock looks even more attractive. As such, investors may not want to overlook ENIC and its 8.83% dividend yield, as it currently trades at around $2.80.

Granite Ridge Resources (GRNT) Coins stack of money on saving, the step of the financial stock market, graph and rows of coins, business investment on a green background, Economy stock market growth of financial recovery. Growth stocks

Source: C H A L N / Shutterstock.com

For investors interested in profiting from the oil and gas industry without the associated risks, Granite Ridge Resources (NYSE:GRNT) could be the right pick for a long-term, growth-focused portfolio. In addition to this more risk-insulated business model, the company’s investments come with a 6.55% dividend yield.

What this means for investors is that GRNT invests their money on their behalf by directly investing in a small portion of high-graded wells, regardless of who is drilling them. Thus, the company can tap into the profit potential of several geographically diverse shale and oil fields across the contiguous United States.

As a result, GRNT doesn’t have the hassle or potential downfalls of long-term contracts. It can simply invest and divest from a region as needed for capital generation. This makes it an incredibly attractive dividend stock under $10. At a 6.55% dividend yield and 10% growth year-to-date, GRNT could be a fantastic pick for investors looking for dividend stocks under $10.

On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.

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