Stocks with low share prices can be a cost-effective way for small investors to diversify their portfolios. But even after a bumpy few days, the market remains near all-time highs and is as expensive as ever, making quality cheap stocks more and more difficult to find.
We’re here to help.
Before a rising market tide lifted almost all boats, it wasn’t too tough to find stocks for less than $10 that offered an acceptable balance of risk and reward. Now, with the Dow bouncing between 25,000 and 26,000, investors should probably raise that limit to $20, just to be safe. Any stock still languishing below $10 likely often comes with an extra heap of risk (as we’ll see in one case), and can risk losing the benefit of institutional buying from entities such as mutual funds.
It’s easy to see the appeal of stocks for $20 or less, especially if you don’t have a lot of money left over to invest after you pay bills and pad your emergency fund. However, many low-priced stocks are priced that way for a reason, so you need to be particularly discerning when you try to pick stocks that go for $20 or less.
Is it risky? Sure. Don’t plow your life’s savings into a stock simply because it seems cheap. But you should take a chance on a promising stock when you can snag it at a bargain price.
Let’s take a look at five such cheap stocks trading for $20 or less.
SEE ALSO: 50 Dividend Stocks You Can Count On in 2018
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Date — February 5, 2018 5:41 pm
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