5 Cheap Dividend Stocks Under $5 When it comes to penny stocks, the words “speculative” and “risky” are likely what first come to mind. Most stocks trading at single-digit prices, whether growth stocks or value stocks, have a high-risk, high-potential-return vibe. Yet, while these types of plays make up the bulk of this category, there are a few cheap dividend stocks under $5 per share. Depending on your investment objectives, these may make for better additions to your portfolio than your standard “moonshot” penny stock. Why? Their high yields could help these investments deliver steady returns. Additionally, they may have less downside risk than non-dividend-paying penny stocks. Consistent dividends are a sign of consistent profitability. And a stable underlying business could mean their stocks are subject to fewer wild price swings. That’s the case here with each stock listed. These five cheap dividend stocks under $5 per share offer worthwhile dividend payouts and could experience gradual price appreciation, either due to a market re-rating or from catalysts playing out.