What are the best stocks under $1 for beginners?

Resolutions Minerals LTD (RLMLF), Kobrea Exploration (KBXFF) and Coyni (LOGQ) are good stocks for beginners.

Should I invest in under-$1 stocks in 2025?

You can invest in under-$1 stocks because there is growth potential, but keep in mind the stock can be volatile and is hard to liquidate.

Which under-$1 stock pays dividends?

It's uncommon for an under-$1 stock to pay dividends because of financial constraints. However, in the past, Gran Tierra Energy Inc. (GTE) was an under $1 stock that has paid dividends.

Are under-$1 stocks good for long-term growth?

Generally, under- $1 stocks are not good for long-term growth because the companies may be financially unhealthy, the stock is volatile and there are regulatory risks.

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Best Stocks Under $1 To Watch or Invest In Right Now

May 8, 2025

6 min Read

Written by Rudri Patel

Edited by Joe Evans

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Looking to stretch your dollars while exploring big potential gains? You’re not alone. Many beginner and budget-conscious investors are searching for the best stocks under $1 and while they come with risks, these low-cost picks can also open doors to major upside.

Let’s explore the top penny stocks under $1, why they attract attention, how to evaluate them and what to know before investing.

Best Stocks Under $1 in 2025

How do the best stocks under $1 stack up? Take a look at this chart to determine what investment works best for you.

Stock	Ticker	Closing Price	Market Cap	Consensus
Biodesix	BDSX	$.54	$78.41 million	Buy
Stardust Power	SDST	$.50	$28.68 million	Buy
Reviva Pharmaceuticals	RVPH	$.88	$40.99 million	Buy
Cognition Therapeutics	CGTX	$.42	$25.86 million	Buy
Caribou Biosciences	CRBU	$.85	$79.44 million	Buy

Note: These prices and returns are illustrative. Penny stocks are volatile — always do your own research.

Why Invest in Stocks Under $1?

Investing in stocks under $1 may provide investors with a way to add to their existing portfolio. Here are reasons why it’s a good investment:

High-growth potential: Stocks under $1 often belong to companies that are in their early stages. There is a chance for an upward trajectory in growth. Even small gains may mean large percentage returns.
Can reflect a grassroots innovation: Sometimes companies whose stocks are valued at $1 are on the edge of new tech innovation that large companies don’t necessarily know about.
Potential for high reward: Although sub-$1 stocks are risky, there is a potential for high rewards.

Stocks Under $1 vs. Other Investment Options

How do stocks under $1 compare to other investments? Check out this chart that compares stocks under $1 with other investment options.

Investment Type	Pros	Cons
Stocks under $1	-High reward -Cheap to buy -Growth potential	-High risk -Company information isn’t always transparent -Hard to liquidate
Small-Cap ETFs	-High reward -Performs better than large-cap stocks -Dividends are paid with some small-cap ETFs	-Risk is high -Can crash during recessions -Unpredictable
Large-Cap ETFs	-Steady growth-Medium risk -Dividends are consistent	-Lower potential growth than smaller cap -Risk of broad market crashes
Bonds	-Conservative, but safe -Good hedge against stock volatility -Steady predictable outcomes	-Minimal growth -Can lose some value when interest rates rise -Limited protection against inflation
Gold/Precious metals	-Good investment during volatile economic times -Hedge against inflation -Recognized store of value	-Does not generate income -Long-term return is lower than stocks

Risks of Investing in Best Stocks Under $1

Although stocks under $1 can seem appealing, there are certain risks associated with this investment. These risks are as follows:

Extreme volatility: These stocks can swing wildly on the market. Even rumors or small news can impact the stock.
Low liquidity: It can be hard to find a buyer when you want to exit. You may have to keep your shares longer than you anticipated.
Lack of transparency: You may not necessarily know the financial health of a company whose stock is valued at less than $1.
No proven business model: Generally, companies that sell stocks for $1 don’t have a product and can go bankrupt.

Penny stocks are best viewed as speculative plays — not core holdings. Consider balancing them with more stable investments.

Trends Shaping Stocks Under $1 in 2025

There are a few trends shaping the market of stocks that are priced under $1. Here are a few:

Companies are getting an additional lifeline: Since interest rates are declining in 2025, some companies are getting a second life since borrowing costs are low.
AI influence: The advent of AI has caused many companies to enter the market as they seek funding for innovation.
SEC pressure: The SEC is increasing its regulations on companies that have several compliance failures and no real operations.

How to Buy Stocks Under $1

It’s pretty easy to invest in stocks that are priced under $1. Here’s how to move forward with your investment:

Step 1: Choose a brokerage platform – Choose a platform that supports buying stocks that are under $1. Fidelity and Charles Schwab offer under-$1 stocks.

Step 2: Do your research – Look at the stock price history, the company’s financial health, volume and liquidity as well as SEC filings, if available.

Step 3: Find the company ticker – Look for the company ticker on the platform.

Step 4: Decide how much you want to invest – You may want to evaluate your full portfolio before investing.

Step 5: Place the trade – Click buy and select the number of shares you’d like to purchase.

Need help getting started? Explore our beginner’s guide to investing for step-by-step advice.

Final Take: Should You Invest in Stocks Under $1?

Investing in the best stocks under $1 can be exciting, but it’s not for the faint of heart. These picks can skyrocket — or tank — with little warning. If you’re intrigued by the upside and willing to stomach the risk, consider adding a few to your watchlist or portfolio.

Just be sure to diversify, do your research and never invest more than you can afford to lose.

Ready to explore penny stocks further? Check out our guide to affordable investing strategies and find the right tools to trade smarter today.

FAQs About Stocks Under $1

Here are some questions and concerns about the best stocks under $1 that you should add to your portfolio ASAP:

What are the best stocks under $1 for beginners?
- Resolutions Minerals LTD (RLMLF), Kobrea Exploration (KBXFF) and Coyni (LOGQ) are good stocks for beginners.
Should I invest in under-$1 stocks in 2025?
- You can invest in under-$1 stocks because there is growth potential, but keep in mind the stock can be volatile and is hard to liquidate.
Which under-$1 stock pays dividends?
- It's uncommon for an under-$1 stock to pay dividends because of financial constraints. However, in the past, Gran Tierra Energy Inc. (GTE) was an under $1 stock that has paid dividends.
Are under-$1 stocks good for long-term growth?
- Generally, under-$1 stocks are not good for long-term growth because the companies may be financially unhealthy, the stock is volatile and there are regulatory risks.

Information is accurate as of May 8, 2025.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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