2 “Strong Buy” Dividend Stocks Under $5 With up to 7% Yield and Substantial Upside

Every investor wants to see his stocks pay off – or he wouldn’t be in the markets. But finding the right investment, the ‘one’ that will bring profits, no matter what direction the overall markets take, can sometimes be challenging.

The two simplest courses of action an investor can take to ensure solid returns are based on common sense. The first is, to buy low and sell high. That is, find a cheap stock with sound fundamentals and good prospects for growth – and buy in to take advantage of the growth potential. The second common sense move is to buy stocks that will pay you back. That is, buy into dividend stocks.

Today we’re going to look at two stocks that offer investors the best from both of those routes toward market success. According to TipRanks’ database, these are Strong Buys, with a dividend yield up to 7% and substantial upside potential. And all that for a cost of entry below $5.

National CineMedia (NCMI)

The first stock we’ll look at lives in a fascinating niche, one that most of us almost certainly never think about. National CineMedia is in the advertising business, creating, producing, and distributing ads that run before the movies in the theater start. The company benefits from having something of a captive audience, one already cued to watch what’s on the screen.

Unsurprisingly, NCMI shares plummeted back in February of 2020, when the corona pandemic forced closures of the movie theater chains. And equally unsurprisingly, the stock has not regained its pre-corona price levels.

In the most recent quarter reported, for 3Q21, NCMI showed $31.7 million at the top line. While well short of pre-pandemic levels (which regularly exceeded $100 million), and while it missed the Street’s estimates by approximately 25%, it was still up a whopping 428% year-over-year. Also, it was the second quarter in a row of increasing revenues, and even after a year or more of pandemic-related headwinds, NCMI still has $64.4 million in cash assets available.

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Those cash assets are helping to fund the company’s dividend, which it has been…


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