"Many of the most significant public companies, especially the technology giants, trade at prices up to $1,000 per share, while many are in the low to mid-hundreds. It is hard to get decent share count leverage at those steep prices. Many investors, especially more aggressive traders, look at lower-priced stocks to make a profit and increase their share count. That can help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half."
"For younger investors or those on a tight budget, investing in stocks to generate consistent passive income can be daunting because many top dividend stocks trade at prices ranging from $25 to over $100 per share. Realizing a significant return on investment can be challenging with a small investing capital base of $ 1,000. Low-priced stock skeptics should note that many of the world's biggest companies, including Apple, Amazon, Netflix, and Nvidia, once traded in the single digits."
Wall Street focuses on large and mega-cap stocks for safety and liquidity, but high per-share prices limit share counts for many investors. High share prices make it hard to achieve meaningful position size; lower-priced stocks enable greater share-count leverage and easier scaling, including selling half and holding half on winners. Many top dividend stocks trade at $25 to over $100 per share, making passive-income generation difficult for investors with small capital. Several major companies once traded in single digits. Screening of research databases identified smaller-cap companies offering potential large returns and significant dividends. Ultra-high-yield names suit some investors and can complement conservative blue-chip dividends in a barbell strategy.
Read at 24/7 Wall St.
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