Been doing some digging into dividend stocks under $10, and honestly there are some solid picks if you know where to look. Most people sleep on low-priced stocks thinking they're garbage, but that's not always the case. Some of these actually have decent fundamentals and can deliver real returns over 2-3 years.

Let me break down three that caught my attention. First up is Nordic American Tankers (NAT). This one's been on a run, up 47% year-to-date from deeply undervalued levels. The crazy part? It's still trading at a forward P/E of just 7.9 and throwing off an 11.7% dividend yield. That's the kind of income play that doesn't come around often. They operate 19 Suezmax tankers and benefited massively from strong tanker rates. In their best quarter in 28 years, they were pulling in $39,300 per day per ship. With net debt per ship at only $8.4 million, they've got serious financial flexibility to expand if the market stays hot.

Then there's Kinross Gold (KGC). Gold's been crushing it above $2,000 an ounce, and this is one of the better emerging gold miners with an investment-grade balance sheet. Trading at a 13.9 forward P/E with a 2.15% dividend yield, it's another solid dividend stock under $10 to consider. They had $2 billion in liquidity and generated over $400 million in operating cash flow last quarter. If gold keeps trending up like I expect, their cash flow visibility for 2024 was looking north of $2 billion, which means dividend growth is likely coming.

Last one is Aegon (AEG). Insurance, pensions, asset management across the US, UK, China, Brazil and beyond. Trading at a 14 forward P/E with a 5.62% dividend yield, it's been sideways for a while but I see potential for a breakout. They're targeting 800 million euros in free cash flow by 2025 and reducing financial leverage to 5 billion euros. When FCF expands and balance sheets strengthen, dividends usually follow. That's the kind of setup that can drive solid total returns over the next 24-36 months.

The whole thesis here is simple: these dividend stocks under $10 aren't just cheap, they've got catalysts. You get income while waiting for the upside. Worth adding to your watchlist if you're looking for holdings that can compound over time.