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7 Stocks Under $7 Paying Dividends

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7 Stocks Under $7 Paying Dividends

Do you like low priced stocks? I like low priced stocks. Some studies say that the returns on low priced stocks outperform higher priced stocks, and some studies say that there is no difference in returns and you have the same chance of a percentage return on a low price as a high priced stock.

That being said, there is still a psychological benefit to buying a low priced stock as it seems like a better deal.

Often low priced stocks are indicative of lower quality companies. But there are alway gems in the junk. Here are several examples, all of which pay dividends.

Computer Task Group, Inc. (NASDAQ: CTG), in the business of IT solutions and staffing services company, sells for a little over $5 a share. The stock trades at 13 times trailing earnings and 15 times forward earnings. It pays a generous yield of 4.7%.

Digirad Corporation (NASDAQ: DRAD) provides diagnostic solutions, and it also sells for around $5 a share. The stock has a price to earnings ratio of 5 and a forward P/E of 15. It also pays a healthy yield amounting to 4.1%.

The investment management company Fortress Investment Group LLC (NYSE: FIG), trades for around $4.60 per share, with a trailing P/E of 15 and a forward P/E of 5. The stock sports a very high yield of 6.7%.

The Hong Kong based company, Highway Holdings Limited (NASDAQ: HIHO), has a great stock ticker symbol. It markets metal, plastic, electric, and electronic components. Trading for this stock, which is at $4.50, is very light. The stock trades at 15 times earnings and yields an extremely high 8.8%.

GlobalSCAPE, Inc. (NYSE: MKT) is a provider of software applications and cloud solutions, with a trailing P/E of 18 and a forward P/E of 13. The yield is a moderate yield of 1.6%. The stock currently trades at $3.88 per share.

LRAD Corp (NASDAQ: LRAD) markets directed sound technologies and products. The stock trades at 6 times earnings and pays a yield of 2.3%. The stock sells for less than $2 per share.

Magic Software Enterprises Ltd. (NASDAQ: MGIC) is an Israeli company that provides application development and software solutions, and sells for about $6.50 per share. The stock trades at 18 times trailing earnings and 8 times forward earnings. It pays a decent yield of 2.7%.

Hopefully, many of these low priced stocks will become high priced stocks.

Disclosure: Author didn't own any of the above at the time the article was written.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Long Ideas Dividends Trading Ideas Best of Benzinga

 

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