There are no guarantees on Wall Street, but a regular dividend payment from a high-quality stock is about as close as it gets.
Even during bear market cycles, investors typically still get their dividend payments. However, a dividend is only as reliable as the company that is paying it, and dividend cuts are often the first defense for companies experiencing financial hardship.
Dividend stocks priced below $10 a share can be risky investments, but there are also a few hidden gem stocks that have strong business fundamentals. Here are seven of the best dividend stocks under $10, according to Bank of America:
Stock
Aegon Ltd. （ticker: AEG）
Gerdau S.A. （GGB）
Turkcell Iletisim Hizmetleri A.S. （TKC）
Patterson-UTI Energy Inc. （PTEN）
Diamondrock Hospitality Co. （DRH）
Arcos Dorados Holdings Inc. （ARCO）
Utz Brands Inc. （UTZ）
Aegon Ltd. （AEG）
Aegon is a Dutch insurance company that offers insurance, savings, pension, and investment products and services around the world. In December, Aegon announced plans to move its headquarters to the U.S. and change its name to Transamerica, a transition that it aims to complete by the end of 2027. Analyst David Barma says Aegon is focused on cash flow and capital generation ahead of its transformation, which is likely the reason its conservative 2026 guidance came up short of consensus expectations. Bank of America has a “buy” rating and $8.65 price target for AEG stock, which closed at $7.08 on March 10.
Dividend yield: 6.6%
Gerdau S.A. （GGB）
Gerdau is a Brazilian steel producer that specializes in long steel products and operates throughout the Americas. The company also runs a major scrap metal recycling operation. Analyst Caio Ribeiro says the U.S. steel market has been resilient, including robust demand and rising prices. Ribeiro says recent hikes on U.S. imported steel tariffs could lead to even higher prices moving forward. Gerdau is prioritizing capital expenditure cuts, and Ribeiro says investors should expect strong U.S. results and higher free cash flow in 2026. Bank of America has a “buy” rating and $5 price target for GGB stock, which closed at $3.64 on March 10.
Dividend yield: 3.1%
Turkcell Iletisim Hizmetleri A.S. （TKC）
Turkcell is the leading mobile network operator in Turkey, and it also has operations in Ukraine, Belarus and Cyprus. The company provides customers with voice, data, TV, enterprise and consumer services on mobile and fixed networks. Analyst Cesar Tiron says the recent weakness in Turkcell’s stock is a buying opportunity. The company plans to double its active data center capacity by 2032, and renewables could provide additional upside. Turkcell’s fixed-line business unit, Superonline, is also rapidly expanding its fiber-to-the-home network. Bank of America has a “buy” rating and $7.45 price target for TKC stock, which closed at $6.25 on March 10.
Dividend yield: 3.5%
Patterson-UTI Energy Inc. （PTEN）
Patterson-UTI Energy is a U.S. oil and gas drilling company that provides U.S. land drilling services. The stock is up 57.3% year to date, the best performance on this list. Even after the recent run, Patterson-UTI’s dividend yield of 4.2% is the second-highest on this list behind only Aegon. Analyst Saurabh Pant says Patterson-UTI’s U.S. land drilling business should benefit from a recovery in drilling and completions activity in 2027 and 2028. Pant anticipates fracking utilization will also contribute to operating leverage. Bank of America has a “buy” rating and $9 price target for PTEN stock, which closed at $9.50 on March 10.
Dividend yield: 4.2%
Diamondrock Hospitality Co. （DRH）
Diamondrock Hospitality is a lodging real estate investment trust （REIT） that was formed in 2004. It specializes in high-end hotels, and about 90% of its properties fall into the upscale and luxury segments. By law, REITs must distribute at least 90% of their annual taxable income to shareholders via dividends and distributions to maintain their special tax-exempt status. Analyst Shaun Kelley says the luxury segment has been the most resilient within the lodging category, consistently outperforming the business transient, government and international travel categories. Bank of America has a “buy” rating and $11 price target for DRH stock, which closed at $9.52 on March 10.
Dividend yield: 3.8%
Arcos Dorados Holdings Inc. （ARCO）
Arcos Dorados is the largest quick-service restaurant operator in Latin America and is the world’s leading McDonald’s franchisee. Brazil represents about half of the company’s total revenue. Analyst Robert Ford Aguilar says Arcos’ strong execution in Mexico is helping offset weakness in Panama and Costa Rica. Ford Aguilar says North Latin American division margins are under pressure from higher food costs, but he is anticipating a rebound in traffic in Argentina. He says good execution and market share gains should be bullish catalysts for Arcos. Bank of America has a “buy” rating and $9 price target for ARCO stock, which closed at $8.04 on March 10.
Dividend yield: 3%
Utz Brands Inc. （UTZ）
Utz Brands is a pure-play U.S. producer and distributor of salty snacks, including potato chips, pretzels, tortilla chips, cheese snacks and pork rinds. The stock is down 24.1% year to date, the worst performance on this list. However, analyst Peter Galbo says he is confident Utz can meet its long-term target of 4% to 5% annual sales growth by expanding its geographic distribution and gaining additional market share. Galbo says even that relatively modest revenue growth rate could lead to earnings upside and multiple expansion. Bank of America has a “buy” rating and $13 price target for UTZ stock, which closed at $7.88 on March 10.
Dividend yield: 3.1%
