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3 Growth Stocks Under $10 With Dividends 3 Growth Stocks Under $10 With Dividends

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	3 Growth Stocks Under $10 With Dividends

Forget what you’ve been told about the unlikelihood of robust capital gains aligning with robust passive income. These dividend stocks under $10 are here to shatter that misconception. They not only offer compelling prospects for strong growth but also provide shareholders with attractive yields. In a space dominated by the usual suspects, these stocks represent overlooked opportunities for retail investors.

The Himax Technologies Opportunity

As a fabless semiconductor manufacturer, Himax Technologies (NASDAQ:HIMX) presents an enticing investment case. The company specializes in providing display imaging processing technologies to a wide array of sectors, including consumer electronics and automotive solutions. With the global display image processing market surging to a staggering valuation of $5.16 billion in 2022, the potential for Himax is enormous.

Analysts predict that the segment could experience a phenomenal compound annual growth rate (CAGR) of 19.7% from 2023 to 2030, ultimately reaching a valuation of $21.73 billion. Given that Himax’s market capitalization is below $1 billion, the growth potential for HIMX is virtually limitless.

What’s more, Himax stands out as one of the dividend stocks under $10, offering an exceptionally high forward yield of 8.81%. Financially, the company boasts an earnings multiple of 12.76X without non-recurring items (NRI), significantly lower than the sector’s median of 29.3X.

Notably, Robert W. Baird’s Tristan Gerra has rated HIMX stock as a “buy,” with a $7 price target, while Credit Suisse foresees shares climbing to $8.

The Jerash Advantage

Jerash (NASDAQ:JRSH), an apparel manufacturing company, specializes in producing and exporting ready-made sport and outerwear clothing for renowned global brands. With six factories and four warehouses and a workforce of approximately 5,700 employees, Jerash boasts an annual capacity of over 14 million pieces.

Despite the challenges posed by years of high inflation and interest rates in the consumer discretionary environment, Jerash’s focus on affordable products positions it favorably. The company’s inclusion in the category of dividend stocks under $10 is further bolstered by a forward yield of 6.47%, eclipsing the consumer discretionary sector’s average yield of only 1.89%.

Analysts foresee a bright future for JRSH stock, anticipating a surge to $5 within the next 12 months, signaling substantial upside potential from current levels.

The VAALCO Energy Proposition

Headquartered in Houston, Texas, VAALCO Energy (NYSE:EGY) focuses on hydrocarbon exploration, representing the upstream segment of the energy value chain. Though the hydrocarbon space has experienced volatility, VAALCO stands to benefit from broader economic trends, including robust employment growth in sectors that generally require in-person operation, potentially driving increased consumption.

As one of the dividend stocks under $10, VAALCO Energy offers a forward yield of 5.72%, aligning it as a viable proposition for income-seeking investors. Moreover, with analysts assigning a consensus moderate buy rating and a target price of $8.62, with the high-side target just under $10, EGY stock presents an intriguing opportunity.

These stocks represent an opportunity within financial markets that deserve serious consideration. For investors seeking to capitalize on both growth opportunities and income generation, these three stocks present a compelling case for further exploration.

About the Author

A former senior business analyst for Sony Electronics, Josh Enomoto has facilitated major contracts with Fortune Global 500 companies. His unique insights have provided critical perspectives for investment markets, as well as industries such as legal, construction management, and healthcare.

On the date of publication, Josh Enomoto 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 and are subject to the InvestorPlace.com Publishing Guidelines.

Tweet Josh at @EnomotoMedia.