7 Best Canadian Dividend Stocks Under $10 (& 13 Others!) | Think Money Moves (2022)

Hello there! Some links on this page are affiliate links which means that, if you choose to make a purchase, I may earn a small commission at no extra cost to you. I greatly appreciate your support!


The stock market is full of gems.

These gems can be the Google stock trading at $2,100/share or low-priced stocks like Dividend 15 Split Corp which is trading at less than $10/share.

Not everyone can afford a $2,000 stock but these low-priced stocks offer buying opportunities for small investors or those who want to create a large portfolio of several stocks with a source of dividend income that requires initial capital as low as $10!

Before we jump into the article, if you are also interested in earning great returns of dividends and capital gains, check out our articles that highlight the and the best Canadian Bank Dividend Stocks!

Now, let’s jump into an overview of the pros & cons of investing in such low-priced stocks and what Canadian dividend stocks you can take advantage of!

Table of Contents Hide

1 Pros of Investing in Stocks Under $10

1.1 Minimal Capital

1.2 High Dividend Yields

1.3 High Potential for Returns

2 Cons of Investing in Stocks Under $10

2.1 Not an Ideal Long Term Investment

2.2 Poor Dividend Growth

2.3 Dividends Cuts

3 Best 7 Canadian Dividend Stocks Under $10

3.1 Dividend 15 Split Corp. II

3.2 Dividend Growth Split Corp.

3.3 Financial 15 Split Corp. Class A

3.4 Dividend 15 Split Corp.

3.5 Doman Building Materials Group Ltd.

3.6 Firm Capital Property Trust

3.7 AGF Management Limited

4 Other Dividend Stocks Under $10

5 Final Thoughts

Pros of Investing in Stocks Under $10

Minimal Capital

Many popular dividend stocks trade at prices upward of $50. For example, McDonald’s trades at $234/share, requiring a higher initial investment. With just one share of McDonald’s, you can easily buy 23 shares of a $10 stock. Therefore, investing in low-priced stocks requires a low initial investment.

High Dividend Yields

The dividend yield is the dividend expressed as a percentage of the current price. Given that the dividends account for a big percentage of their current share price, low-priced stocks develop attractive high dividend yields. For example, Dividend 15 Split Corp (DFN.TO) is trading at $7.90/share and has a dividend of $1.20, generating a dividend yield of 15.19%. Additionally, one must also be aware that given the big swings in the share prices, their dividend yields can fluctuate on a daily basis.

High Potential for Returns

One of the biggest attractive features of low-priced stocks is their high potential to earn higher returns due to their higher risks associated. They have the potential to explode in the coming months and years. For example, during the market recovery after March 2020, Dividend 15 Split Corp (DFN.TO) generated 83% within a few months. Additionally, one must note that with higher risks, your gains can be just as large as your losses.

7 Best Canadian Dividend Stocks Under $10 (& 13 Others!) | Think Money Moves (1)

Cons of Investing in Stocks Under $10

Not an Ideal Long Term Investment

To capture capital gains, you essentially require more research and attention to the market and your low-priced stocks. Based on their performance track record, such stocks don’t perform well over the long term but provide excellent opportunities for gains during the short-term or periods of volatility. For example, during the market recovery after March 2020, Dividend 15 Split Corp (DFN.TO) generated 83% within a few months but over a course of 10+ years, it has generated negative returns.

Poor Dividend Growth

Dividend investors like to see not only stability but also consecutive growth in their dividends. McDonald’s has had 45 consecutive annual dividend increases which is quite impressive! Whereas, with low-priced stocks, we often see poor dividend growth. For example, Dividend 15 Split Corp (DFN.TO) has been paying $0.1/share dividends ever since 2005, displaying no dividend growth.

Dividends Cuts

In addition to the poor dividend growth, low-priced stocks also incorporate dividend cuts. During market downturns or difficult circumstances, such stocks cut their dividends. Whereas, McDonald’s continued its dividend growth even during the 2020 market downturn. Therefore, $10 stocks tend to earn you an unstable dividend income stream.

7 Best Canadian Dividend Stocks Under $10 (& 13 Others!) | Think Money Moves (2)
7 Best Canadian Dividend Stocks Under $10 (& 13 Others!) | Think Money Moves (3)

Best 7 Canadian Dividend Stocks Under $10

Dividend Stocks Under $10Dividend YieldDividend Payout Ratio
Dividend 15 Split Corp. II21.66%39.60%
Dividend Growth Split Corp.17.91%31.25%
Financial 15 Split Corp. Class A16.05%33.90%
Dividend 15 Split Corp.14.80%48.58%
Doman Building Materials Group Ltd.9.15%39.69%
Firm Capital Property Trust7.25%29.71%
AGF Management Limited6.33%53.85%

Dividend 15 Split Corp. II

Ticker: DF.TO
Dividend Yield: 21.66%
Dividend Payout Ratio: 39.60%
Distribution Frequency: Monthly
Industry: Asset Management
Sector: Financial Services

Dividend 15 Split Corp. II is a close-ended equity mutual fund managed by Quadravest Capital Management. The fund invests in stocks of Canadian companies operating across diversified sectors.

History of Paying Dividends: DF has a very long history (16+ years) of paying dividends to its shareholders. Therefore, with its long track record, DF is a reliable dividend stock.

Dividend Yield & Dividend Payout Ratio: DF offers an extraordinarily high dividend yield of 21.66% while maintaining a healthy and sustainable payout ratio of 39.60%. Given that its payout ratio is within the ideal range of less than 55%, DF offers a reliable stream of dividend income.

Dividend Growth Rate: DF has been paying a monthly dividend of $0.1/share for 16+ years, displaying no dividend growth. Although there have been no dividend cuts, DF has missed a few dividend payments. Therefore, investing in DF has high risks associated: poor dividend growth and missed dividend payments.

Dividend Growth Split Corp.

Ticker: DGS.TO
Dividend Yield: 17.91%
Dividend Payout Ratio: 31.25%
Distribution Frequency: Monthly
Industry: Asset Management
Sector: Financial Services

Dividend Growth Split Corp. is a closed-ended equity mutual fund managed by Brompton Funds Limited. The fund invests in the public equity markets of Canada across diversified sectors. The fund primarily invests in stocks of large-cap companies.

History of Paying Dividends: DGS has a 15+ year history of paying dividends to its shareholders. Therefore, with its long track record, DGS is a reliable dividend stock.

Dividend Yield & Dividend Payout Ratio: DGS pays an attractive dividend yield of 17.91% while maintaining a healthy and sustainable payout ratio of 31.25%. Given that its payout ratio is within the ideal range of less than 55%, DGS offers a reliable dividend income stream.

Dividend Growth Rate: DGS has been paying a monthly dividend of $0.1/share for 15+ years, displaying no dividend growth. Although there have been no dividend cuts, DGS has missed a few dividend payments. Therefore, investing in DGS has high risks associated: poor dividend growth and missed dividend payments.

Financial 15 Split Corp. Class A

Ticker: FTN.TO
Dividend Yield: 16.05%
Dividend Payout Ratio: 33.90%
Distribution Frequency: Monthly
Industry: Asset Management
Sector: Financial Services

Dividend 15 Split Corp. II is a close-ended equity mutual fund managed by Quadravest Capital Management. It invests in the public equity markets of the United States and Canada, primarily in the financial sector.

History of Paying Dividends: FTN has a 19+ year history of paying dividends to its shareholders. Therefore, with its long track record, FTN is a reliable dividend stock.

Dividend Yield & Dividend Payout Ratio: FTN pays a very attractive dividend yield of 16.05% while maintaining a healthy and sustainable payout ratio of 39.60%. Given that its payout ratio is within the ideal range of less than 55%, FTN offers a reliable dividend income stream.

Dividend Growth Rate: Investing in FTN comes with very high risks: missed dividend payments, poor dividend growth and dividend cuts. During market downturns, such as in March 2020, FTN cut its dividend by 60% and has maintained the same dividend cut ever since, displaying no dividend growth.

Dividend 15 Split Corp.

Ticker: DFN.TO
Dividend Yield: 14.80%
Dividend Payout Ratio: 48.58%
Distribution Frequency: Monthly
Industry: Asset Management
Sector: Financial Services

Dividend 15 Split Corp. II is a close-ended equity mutual fund managed by Quadravest Capital Management. The fund invests in stocks of Canadian companies operating across diversified sectors.

History of Paying Dividends: DFN has a 16+ year history of paying dividends to its shareholders. Therefore, with its long track record, DFN is a reliable dividend stock.

Dividend Yield & Dividend Payout Ratio: DFN offers an extraordinarily high dividend yield of 14.80% while maintaining a healthy and sustainable payout ratio of 48.58%. Given that its payout ratio is within the ideal range of less than 55%, DFN offers a reliable dividend income stream.

Dividend Growth Rate: DFN has been paying a monthly dividend of $0.1/share ever since 2005, displaying no dividend growth. Although there haven’t been any dividend cuts, DFN has skipped a few months of paying dividends. Therefore, investing in DFN has high risks associated: skipped dividend payments and poor dividend growth.

Doman Building Materials Group Ltd.

Ticker: DBM.TO
Dividend Yield: 9.15%
Dividend Payout Ratio: 39.69%
Distribution Frequency: Quarterly
Industry: Building Materials
Sector: Basic Materials

Doman Building Materials Group Ltd. distributes building materials and related products in Canada, the United States, and Hawaii. It distributes a range of building materials, lumber, renovation, and electrical products. Additionally, it owns approximately 117,000 acres of private timberlands, and strategic licenses and tenures.

History of Paying Dividends: DBM has a long history (14+ years) of paying dividends to its shareholders. Therefore, with its long track record, DBM is a reliable dividend stock.

Dividend Yield & Dividend Payout Ratio: DBM offers a high dividend yield of 9.15% while maintaining a healthy and sustainable payout ratio of 39.69%. Given that its payout ratio is within the ideal range of less than 55%, DBM offers a reliable dividend income stream.

Dividend Growth Rate: DBM has a very inconsistent and fluctuating dividend payment track record. Over the course of 14+ years, DBM’s quarterly dividends have fluctuated from $0.116 to $0.2 per share. Hence, investing with DBM can earn you a fluctuating dividend income stream that has random dividend cuts and dividend growths.

Firm Capital Property Trust

Ticker: FCD-UN.TO
Dividend Yield: 7.25%
Dividend Payout Ratio: 29.71%
Distribution Frequency: Monthly
Industry: REIT—Diversified
Sector: Real Estate

Firm Capital Property Trust owns and co-owns a diversified property portfolio of multi-residential, flex industrial, net lease convenience retail, and core service provider professional space. It is focused on creating long-term value for Unitholders through capital preservation and disciplined investing to achieve stable distributable income.

History of Paying Dividends: As compared to its competitors, FCD-UN has the shortest dividend track record. Having a 10+ year track record gives enough substance for investors to evaluate the competence and quality of the stock. Given that FCD-UN has a 9-year dividend track record, we can still consider FCD-UN as a reliable dividend stock.

Dividend Yield & Dividend Payout Ratio: With its attractive dividend yield of 7.25%, FCD-UN also has a sustainable payout ratio of 29.71% which may seem very low. Such low payout ratios aren’t deemed bad but instead, show that FCD-UN has enough money to reinvest into its business and pay dividends back to its shareholders.

Dividend Growth Rate: Unlike its competitors, FCD-UN demonstrates stability and slow growth in its dividends. Although FCD-UN may take a few years to increase its dividends, it provides a stable stream of income with no dividend cuts and no missed dividend payments. Therefore, FCD-UN is one of the few stocks under $10 that overcomes these common pain points.

AGF Management Limited

Ticker: AGT-B.TO
Dividend Yield: 6.33%
Dividend Payout Ratio: 53.85%
Distribution Frequency: Quarterly
Industry: Asset Management
Sector: Financial Services

AGF Management provides its services to public and corporate DB pension plans, endowments and foundations, sovereign wealth funds, corporate plans and many more. AGF employs fundamental analysis to make its investments.

History of Paying Dividends: AGT-B has the longest track record of 25+ years of paying dividends to its shareholders. Therefore, with its long track record, AGT-B is a reliable dividend stock.

Dividend Yield & Dividend Payout Ratio: AGT-B offers a high dividend yield of 6.33% while maintaining a healthy and sustainable payout ratio of 53.85%. Given that its payout ratio is within the ideal range of less than 55%, AGT-B offers a reliable dividend income stream.

Dividend Growth Rate: As compared to its competitors AGT-B has a relatively more stable dividend track record that demonstrates dividend growth year after year. However, AGT-B carries the risk of dividend cuts. For example, AGT-B displayed consistent dividend growth, year after year, from 1996 to 2015 when it cut its dividends and maintained the same dividend payment until 2021.

Other Dividend Stocks Under $10

The above cheap dividend stocks are ranked based on their extraordinary high dividend yield while maintaining healthy and sustainable dividend payout ratios. But what if you want to invest much beyond the above 7 under $10 stocks?

You can check out the table below or other stocks that are under $5! This is a perfect way to create a large portfolio where your initial investment is minimal and dividend income is amplified!

Other Dividend Stocks Under $10Dividend YieldDividend Payout Ratio
Life & Banc Split Corp. (LBS.TO)13.07%25.37%
Dividend Select 15 Corp. (DS.TO)11.10%41.68%
Propel Holdings Inc. (PRL.TO)5.21%32.42%
DRI Healthcare Trust (DHT-UN.TO)5.11%37.50%
Bird Construction Inc. (BDT.TO)4.94%40.63%
Canadian Net Real Estate Investment Trust (NET-UN.V)4.78%22.99%
Sagicor Financial Company Ltd. (SFC.TO)4.40%22.89%
Canaccord Genuity Group Inc. (CF.TO)3.81%14.35%
Medical Facilities Corporation (DR.TO)3.79%45.99%
Lundin Mining Corporation (LUN.TO)3.61%26.06%
Champion Iron Limited (CIA.TO)2.95%10.00%
Centerra Gold Inc. (CG.TO)2.94%14.74%
Dundee Precious Metals Inc. (DPM.TO)2.79%12.38%

Final Thoughts

Under $10 dollar stocks give you an excellent opportunity to invest with minimal capital and earn great returns. You can also invest in other stocks trading under $5!

Although such stocks generate excellent returns, it may not be wise to invest in these stocks in the long term. As always, make sure you are aware of the pros and cons of investing in such low-priced stocks and invest accordingly.

Happy Investing!

Dividend Stocks

Top Articles

You might also like

Latest Posts

Article information

Author: Amb. Frankie Simonis

Last Updated: 10/15/2022

Views: 6065

Rating: 4.6 / 5 (56 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Amb. Frankie Simonis

Birthday: 1998-02-19

Address: 64841 Delmar Isle, North Wiley, OR 74073

Phone: +17844167847676

Job: Forward IT Agent

Hobby: LARPing, Kitesurfing, Sewing, Digital arts, Sand art, Gardening, Dance

Introduction: My name is Amb. Frankie Simonis, I am a hilarious, enchanting, energetic, cooperative, innocent, cute, joyous person who loves writing and wants to share my knowledge and understanding with you.