We recently published a list of the 13 High-Dividend Stocks to Invest In Under $10. In this article, we are going to take a look at where NL Industries, Inc. (NYSE:NL) stands against other high-dividend stocks under $10.

Investors often favor dividend stocks for their long-term potential, with their appeal stemming from the consistent growth they tend to deliver over time. Ed Yardeni, the President of Yardeni Research, Inc., stated the following about dividends:

“Dividends are like plants: Both grow. But dividends can grow forever, while the size of plants is limited.”

Dividend stocks are experiencing renewed interest today as a means to return value to shareholders. In 2022, companies in the broader market paid out a record $565 billion in dividends—the highest amount ever recorded. This comes at a time when interest rates are structurally higher for the first time in decades, making the era of ultra-low borrowing costs seem like a thing of the past. Between 2018 and 2022, investors also weathered three bear markets, each marked by a drop of 20% or more.

As some of the biggest companies have grown to enormous sizes —both in terms of revenue and market cap—their ability to sustain high growth rates has naturally declined. Despite slower growth prospects, these companies remain highly profitable, generating more cash than they can effectively reinvest because they are returning it to shareholders through dividends. This is why more and more companies have initiated their dividend policies. In 2024, major tech companies joined the dividend club in an effort to offer both growth and value to shareholders. The tech giants, though offering low yields today, managed to return billions through dividends last year, which is a clear indication of their strong commitment to rewarding investors.

S&P Global also highlighted this trend in a recent report, noting that global dividend growth saw a sharp rise in 2024, climbing by an impressive 8.5%. The surge was especially strong in Asia-Pacific, where government policies encouraged companies to shift from annual to semiannual dividend distributions. At the same time, the US market experienced a wave of new and reinstated dividend payments, largely fueled by companies in the technology, media, and telecommunications (TMT) sectors.

With the market taking a volatile turn, dividend stocks are in the green, offering a sense of reassurance to investors. The Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, is down by over 4% since the start of 2025, compared with an over 10% decline in the broader market. As a result, analysts remain optimistic about dividend prospects in 2025. According to S&P Global, US total dividend payouts are expected to rise by 7% next year, reaching approximately $784 billion. In recent years—and continuing into the current fiscal year—sectors like energy, pharmaceuticals, financial services, banking, and REITs have played a major role in driving this growth. Given this positive outlook, we will take a look at some of the best dividend stocks under $10 with high yields.

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NL Industries, Inc. (NL): Among the High-Dividend Stocks to Invest In Under $10

A security technician installing a high-tech security system with multiple door locks.

Our Methodology

For this article, we screened for dividend stocks under $10, as of the close of April 7. From that list, we identified stocks with high dividend yields and picked 13 stocks with dividend yields over 4%, as recorded on April 8. The stocks are ranked according to their dividends. While high-yield dividend stocks are sometimes seen as signs of weakening financial health, we focused on selecting companies with solid dividend track records and strong balance sheets.

At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

NL Industries, Inc. (NYSE:NL)

Dividend Yield as of April 8: 4.86%

Share Price as of the Close of April 7: $7.29

NL Industries, Inc. (NYSE:NL) is a Texas-based lead smelting company and operates in the component products industry. The company reported a net income of $16.5 million, or $0.34 per share, for Q4 2024, up from $7.6 million, or $0.16 per share, in the same period a year earlier. Its majority-owned subsidiary, CompX International, posted fourth-quarter net sales of $38.4 million, down from $43.2 million in Q4 2023. The decline in sales was mainly due to reduced demand for Security Products from a government security client. However, stronger Marine Components sales to the towboat and government sectors partially offset this.

NL Industries, Inc. (NYSE:NL) remained a reliable option from a dividend point of view. In FY24, the company’s dividend income increased by $1.4 million compared to 2023 due to higher average interest rates on invested balances. On February 27, the company declared a 12.5% hike in its quarterly dividend to $0.09 per share. This was its second consecutive year of dividend growth. The stock has a dividend yield of 4.86%, as of April 8.

At the end of Q4 2024, 4 hedge funds tracked by Insider Monkey held stakes in NL Industries, Inc. (NYSE:NL), the same as in the previous quarter. The consolidated value of these stakes is nearly $2 million. Among these hedge funds, Renaissance Technologies owned the largest stake in the company.

Overall, NL ranks 12th on our list of the high dividend stocks to invest in under $10. While we acknowledge the potential of NL as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than NL but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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