3 Under-$10 Dividend Stocks Poised for Major Growth

Core Viewpoint - The U.S. economy is experiencing challenges in 2024, with inflation remaining above the Federal Reserve's target of 2%, making dividend investing a viable strategy for mitigating inflation's negative impact [1][2] Dividend Stocks Overview - Dividend stocks are essential for generating returns in the stock market, especially those priced under $10, which show promising potential for value appreciation [1][2] Company Summaries Telefonica (TEF) - Telefonica is a major global mobile network provider that has undertaken significant debt reduction measures, including restructuring and acquisitions [3] - In 2024, TEF stock has appreciated 14% to $4.51 per share, with a year-over-year gain of 6.09% and a current dividend yield of 7.19% [3][4] - Analysts predict a further stock price increase of 1.55% to $4.60 per share, making it a strong candidate for dividend investors [4] Nokia (NOK) - Nokia, a key player in telecom and IT, reported a 19% decline in net sales to €4.5 billion in Q2 2024, but improved its gross margin to 43.3% [5][6] - The company is experiencing growth in its network infrastructure business, particularly in North America, with an expected operating margin of 11.5% to 14.5% for FY 2024 [5] - Nokia's dividend yield is currently at 3.66%, and the stock has risen nearly 13% in 2024, indicating potential for future growth [6] Aegon (AEG) - Aegon is an insurance company focused on savings, pensions, and insurance solutions, currently transforming its U.S. subsidiary into a leading life insurance provider [7] - The company has announced a €1.54 billion share buyback program, followed by an additional €200 million buyback, reflecting strong capital return initiatives [7][8] - Aegon's dividend yield stands at 5.43%, with stock appreciation of 11.87% in 2024 and 18.92% over the past year, currently priced at $6.35 per share [8]