Penny stocks that pay monthly dividends are a great way to start investing. The shares you buy will be inexpensive. You can also collect on your investments relatively quickly.
The SEC defines penny stocks as stocks worth less than $5. Many investors only refer to stocks worth under $1 as penny stocks. Many investors also avoid penny stocks because of their inherent risks. Many penny stocks are in companies that are financially struggling or new. Very few are listed on exchanges.
There are still many opportunities to profit from high dividend penny stocks. The cheap stocks that pay dividends that also have strong underlying fundamentals are worth looking into. So, here’s a list of penny stocks that pay dividends.
5 Best List of Penny Stocks that PAY Dividends
1. Flexible Solutions International Inc.
Flexible Solutions International Inc. is a Canadian chemical manufacturing company. They focus on environmentally friendly products. Their chemical manufacturing focusses on improving crop yield, oil and gas operations, water treatment, and conserving water and energy. FSI is active in the research, development, and manufacturing of these environmental technologies.
The company currently offers an annual dividend of $0.08 per share at a 4.19% yield. The current price per share is $1.90
2. Harte Hanks, Inc.
This marketing services company utilizes behavioural marketing to serve their clients. They use consumer habits data and analytics to more efficiently market clients’ products and services. To meet that end, Harte Hanks, Inc. offers:
- Insights based on data
- Creative services
- Digital and social media marketing
- Marketing strategy
- Direct mail
Harte-Hanks offers a small dividend for its investors. The company’s share price has dropped significantly and is now only $2.91 per share.
3. Radiant Logistics, Inc.
Radiant Logistics, Inc. is a transportation and supply chain management company. They acquire logistics service providers regionally, but their focus is on comprehensive logistics services. To that end, they offer multimodal transportation services to service advanced supply chains globally. They offer these services through ocean and air freight forwarding and their freight brokerage service.
The company currently offers an annualized dividend of $0.609375 per share. The stock is currently selling for $4.00 per share.
4. ASE Technology
ASE Technology is a Taiwanese company that provides semiconductor manufacturing services. It provides a wide range of services including:
- Front-end engineering testing
- Water probing
- IC packaging
- Electronic manufacturing services
ASE Technology operates in several segments. They have individual segments for Packaging, Testing, Electronic Manufacturing Services, and Estate. The combination of these segments creates a diverse company that provides a diverse array of services. The services are all critical components of semiconductor manufacturing.
The company’s stock is currently still selling for under $5 per share. It offers a dividend of $0.16. It’s also quite likely that the company’s stock price will continue to rise above the penny stock threshold.
5. Enel Chile SA
Enel Chile SA develops, operates, generates, and distributes electricity in Chile. The company provides electricity through its Generation, Transmission, and Distribution segments. The Generation segment controls electrical lines and substations owned by transmission and distribution companies.
The company’s stock is currently valued at under $4 per share and provides a dividend yield of 6.72%.
Stocks under $1 that Pay Dividends
If you want to get the cheapest stocks on the market, you will be hard-pressed to find good dividends. But there are a few stocks that cost less than a dollar while paying dividends.
Compressco Partners Lp
Compressco Partners Lp pays one of the higher dividends you’ll find through penny stocks. The stock is valued at around $0.73 as of the time this was written. But the stock yields an annual $0.04 per-share dividend.
The company offers compression-based production enhancement for the exploration of oil and natural gas. They offer this through their range of compression products. Thanks to a recent assimilation, they can offer the compression products needed to cover each step of the natural gas production and transportation cycle.
Dividend Stocks under $2 (Hot Picks)
Penny stocks with dividends don’t usually cost under $2. But these penny stocks with dividends all cost under $2 and pay healthy dividends.
VEON Ltd. is a holding company that provides international telecommunications services. The Dutch-headquartered company primarily serves customers in Asia, Europe, and North America. The company is split into several segments broken down by the areas they operate in.
VEON has a dividend policy that sees the company attempt to pay 50% of prior year Equity Free Cash Flow after licenses. That translated into a $0.15 per share dividend for the financial year of 2019.
Permianville Royalty Trust
This statutory trust acquires and holds net profits from the sale of oil and natural gas. The company focusses on production in just three US states. Oil and natural gas in Texas, New Mexico, and Louisiana provide the capital that Permianville is responsible for.
Right now Permianville Royalty Trust shares are selling for just over $1 per share. The company provides a dividend of $0.05 per share annually and a dividend yield of 10.84%.
Penny Stocks With High Dividends
Just Energy Group
Just Energy Group provides electricity and natural gas commodities. It also offers services such as energy efficiency solutions. The company has a simple business model that is divided between just 2 segments. The first is the Consumer Energy segment and the second is Commercial Energy.
This company isn’t particularly impressive for its products and services. But it’s well-run and offers a great investment opportunity. Shares are trading at $0.38 per share as of this writing and have been priced similarly since the beginning of July. The company offers an impressive annual dividend of $0.09 per share
Precision Drilling Corporation
Precision Drilling Corporation is an onshore drilling, completion, and production services company. They provide their precision drilling services to the oil and natural gas industry.
The company provides its services through the ‘Contract Drilling Services’ and ‘Completion and Production Services’ segments. Their Contract Drilling Services segment handles all drilling and supplying services. It's also responsible for the company’s manufacturing divisions. The Completion and Production Services segment handles:
- Camp and catering
- Wastewater treatment
Shares of Precision Drilling are currently trading at just over CAD 0.62. The annual dividend yield is CAD 0.20 per share, which is an excellent yield.