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Stocks that trade under $10 a share attract investors looking for small cap companies with big upside potential. Finding high yield stocks under $10 can be a challenge.

When you go through a stock screener you will end up with a mix of funds, trusts and stocks. Our dividend stocks under $10 list includes these funds but today we’ve excluded funds and trusts from this list. We also eliminated any stock that had year over year declines in its dividend or a dividend yield less than 3%.

Big 5 Sporting Goods (BGFV)

Big 5 Sporting Goods is a sporting goods store with almost 400 large (11,000 sq foot) stores. The company mostly operates out of the Western U.S. states. Big Five has a market cap of 188M.

BGFV has a dividend yield of 3.2% and a low payout ratio of 36%. The company cut its dividend in 2009 but resumed increasing it this year with a 50% increase year over year.

ClickSoftware Technologies (CKSW)

Clicksoftware makes software for workforce management. The software provides capacity planning, shift planning, service scheduling and mobile workplace management. Clicksoftware has a market cap of 285M.

CKSW has a dividend yield of 3.4% and a relatively high payout ratio of 88%. Dividends were initiated in 2011 so there is no dividend growth rate yet.

Harte-Hanks (HHS)

Harte-Hanks operates in two segments: Shopper publications with a distribution of 13 million and a diversified direct advertising business. HHS has a market cap of 558M.

HHS has a dividend yield of 3.6% with a payout ratio of 44%. Its 5 year dividend growth rate is 6.6%. Media buys have risen so far in the second half of 2011, and many analysts believe media companies are undervalued at current levels and stand to do well in 2012.

Methode Electronics (MEI)

Methode designs and manufacturers electro-mechanical devices for a wide range of segments and industries. Its products provide mechanical devices for everything from copper transceivers to appliances to automotive equipment. MEI has a market cap of 326M.

MEI has a dividend yield of 3.17% and a payout ratio of 60%. It also has a pretty solid 5 year dividend growth rate of 7.45%. The company has been paying dividends since 1990 but has not increased its dividend since 2009.

Met-Pro (MPR)

Met-Pro sells air and liquid purification equipment along with fluid handling equipment. The company has a market cap of 129M.

MPR has a dividend yield of 3.2% and a payout ratio of 62%. Its 5 year dividend growth rate is a respectable 7.15%. The company has been paying dividends since 1992 and has raised its dividend for each of the last 6 years.

Safe Bulkers (SB)

Safe bulkers is an international transportation company that transports coal, grain and iron ore worldwide with a fleet of 16 vessels. SB has a market cap of 468M.

SB has a dividend yield of 9.1% with a payout ratio of 42%. The company started paying dividends in 2008 and has not increased the dividend during that time.

Source: 6 Dividend Paying Stocks Trading Under $10