Two Stocks with Market Caps Over $250 Million that Sell for Under $10

Investors love low priced stocks. Investors love dividends. What happens if you combine the two criteria? WallStreetNewsNetwork.com just came out with a list of over 25 stocks selling for less than $10 per share, with market caps over $250 million, and yields over 10%. Many of them were closed end funds, but several are businesses, such as Cedar Fair LP (FUN), the amusement park and water park company, which just went ex-dividend. Based on its latest quarterly payment of 25 cents, it yields 14.6%.

How about a biotech that has a 12.2% yield? PDL BioPharma, Inc. (PDLI) is an interesting company selling for less than ten dollars a share. They manage antibody humanization patents and royalty assets, consisting of patents and license agreements with biotech companies. They also pay 25 cents per quarter and last went ex dividend on September 15, and paid their dividend October 1. They just priced a $300 million securitization transaction which will monetize 60% of the royalties from sales of current Genentech products. They intend to pay a significant portion of the proceeds from the securitization to stockholders in the form of a special dividend, most likely in December of this year. The total amount of this special cash dividend, along with the record and payment dates will be finalized at the upcoming board of director's meeting on November 11th and announced the following day.

Remember, these stocks can reduce or eliminate their dividend at any time.

Disclosure: Author does not own any of the above.

Comments

[nprfreak:]

Unfortunately, based on the latest quarterly report from Cedar Fair (FUN), the pending dividend will be the last for a while. Q3 numbers weren't great but what pushed the price back so badly was an anticipated debt covenant breach before year end and the dividend elimination planned to pay down debt. THAT's the problem with low price / high dividend stocks!

Nov 09 06:48 AM

[Alphameister:]

Your yield figure is right on PDLI, but their dividend is $.50 paid semi-annually rather than $.25 paid quarterly. I have a substantial position in PDLI, which seems to offer exceptional total-return potential at a relatively low level of risk.

Nov 09 08:09 AM

[Wolfhounds:]

Let's see. PDLI is sacrificing 60% of future dividends for a current payout. How does that add value?

Nov 09 10:43 AM

[User 461471:]

your comment about the FUN dividend implying a 14.6% yield is worse than just wrong, it's the kind of idiotic advice that can really hurt someone's investment account. get your head out of your butt...401 followers, PLEASE!

Nov 11 10:16 AM

[Anthony Davian:]

I agree w/the commenter above, your statement on FUN is irresponsible. The company is on the brink of chapter 11 and here you are saying that it yields 14+%

Nov 12 01:17 PM

[FreeMkts:]

If FUN hits bankruptcy, sign me up for a GGP type of opportunity. Cash flow is being redeployed to pay down debt. It is the responsible thing to do. If you want to critique the author, ask why he is not aware of the pending suspension of the dividend.

Nov 16 11:29 AM

[Alexis Felix:]

How can I buy this $10 stock direct?

Nov 19 09:53 AM