Even though the price of a stock has very little to do with its valuation or potential, many investors have a slight unconscious bias against stocks that are priced relatively low. A single-digit price tag is not necessarily a sign of trouble, and there are four stocks, currently trading under $10 that endorse this notion.
An Australian stock
Orocobre (TSX:ORL) is an Australia-based, cross-listed, Lithium company with three international operations. One of them, Advantage Lithium, is based in Canada. The other two operations allow the company exposure to two different asset classes. One is a brine-oriented Lithium operation, while the other is an Argentina-based operation focused on Boron.
While Lithium is now prized for battery-making (since the demand has spiked following the green revolution), Boron has more stable and long-term industrial uses. It’s a mid-cap company, and the stock is going through an amazing growth spurt which sent it up 270% in the last 12 months alone. Orocobre is capable of amazing growth, and if you buy now, you can take advantage of its current momentum before its wanes.
BTB REIT (TSX:BTB.UN) is a high-yield dividend stock with the market cap down to dangerous levels. Still, the commercial REIT has managed to sustain its dividends thus far into 2021 at least. And since it had already slashed its payouts in 2020, it’s unlikely to do so again. Otherwise, it risks triggering a mass investor exodus.
The REIT is currently trading way below $10. It’s currently available for $4.2 a share and is offering a mouthwatering yield of 7.1%. This yield makes this stock trading under $10 a powerful passive income tool.
A retirement care stock
Another high-yield, albeit more stable dividend stock, is Extendicare (TSX:EXE). The company currently owns and operates over 120 facilities, including senior care facilities, retirement care facilities, and also has a decent home healthcare operation. It has a decent presence in the Canadian senior care facility and a geographically diversified portfolio of income-producing properties.
The company is currently offering a juicy yield of about 6.6%. The stock is also quite discounted, but the price-to-book ratio is a bit high. Currently, the stock is trading at a price of $7.1 per share. It’s important to note that while the dividend potential of Extendicare is amazing, its capital appreciation potential is almost non-existent.
A powerful growth stock
If you want to buy a stock under $10 that can offer explosive growth to your portfolio, one stock that should be on your radar is StorageVault (TSXV:SVI). The stock is currently trading at just $5.8 per share, but a low price doesn’t mean low value here. StorageVault is quite aggressively overpriced, but that heavy price tag might still be worth it if you consider the positive side.
It’s a niche real estate company that focuses on storage properties. It’s a relatively stable and profitable asset class, and StorageVault has consolidated most of the territory. Despite being from the junior exchange, it’s a mid-cap stock with a market capitalization of over $2 billion. But the most important reason to consider StorageVault for your portfolio is its growth potential. The 10-year compound annual growth rate (CAGR) of 40.3% puts it among the most powerful Canadian stocks currently available.
If you are looking for amazing stocks currently trading for under $10, you will find a surprisingly healthy collection. These stocks, while not exactly undervalued, come with a relatively small price tag. But as you might have gauged from the growth potential of StorageVault and the yield of Extendicare and BTB REIT, the small price tag can definitely promise huge returns.