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5 Cheap Stocks to Buy for $20 or Less

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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.

Years ago, it wasn't too tough to find stocks for less than $10 that offered an acceptable balance of risk and reward. However, considering the rising tide of the past few years, investors should probably raise that limit to $20, just to be safe. Any stock still languishing below $10 comes with additional risks (as we'll outline later), and can risk losing the benefit of institutional buying from entities such as mutual funds.

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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

Data is as of Feb. 2, 2018. Dividend yields are calculated by annualizing the most recent quarterly payout and dividing by the share price. Analyst ratings are from Zacks Investment Research. Companies are listed alphabetically.

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