List Of Penny Stocks That Pay Dividends

| January 28, 2015 | 7 Comments

penny stock listDid You Know Penny Stocks Pay Dividends?

Did you know that some penny stocks pay dividends?

You don’t have to just buy Fortune 500 stocks to collect dividend payouts… As a matter of fact, one of the best investments I ever made was a penny stock that paid a dividend.

But I’ll spare you that long drawn out story today.

Instead, I’m going to give you a list of penny stocks that pay dividends right now… then I’m going to share with you step by step how I found them.

When you own a dividend paying stock – penny or otherwise – you get paid to trade that stock!

What do I mean by that?

Well, if you buy a normal stock, it doesn’t pay a dividend… so your only chance to profit comes from selling the stock at a higher price.  When a stock pays a dividend, every month, or every quarter, the company sends shareholders a check.

Even if the stock hasn’t budged one red cent… you get paid!

And collecting a check is always a good thing.

Now a word of warning…

Just because a penny stock pays a dividend doesn’t make it safe… or special.  You’ve still got to do the research.  You’ve got to do your due diligence.

Read up on the company…

Study their business, the financials, look at the stock, analyze the management team… do everything you’d normally do before investing in a stock.

You do perform due diligence on stocks before trading them… right?  Good…

So here’s the list of penny stocks paying a dividend right now.

A List Of Penny Stocks That Pay Dividends

The list is a simple one…

Here’s a screen shot of the list of stocks that came up on my search.  I sorted them by industry group so they’d be easy to look for…

If for some reason the graphic below doesn’t show up, I’ll include a list of the companies at the end of the article…

dividend-paying-penny-stocks

Now a few notes…

First there are some Funds in the list… not sure why they came up.  Clearly the database we’re searching on isn’t 100% perfect.

Also you’ll note there are a number of trusts on the list too.

Take caution before investing in these trusts.  Often times they have a very particular lifespan and some crazy distribution requirements… I’d kick those to the curb rather quickly.

Clearly this list isn’t perfect at eliminating the bad investments out there… for example, the list includes FXCM – a company who recently blew up because of a big move in the Swiss Franc.

Make sure you do your diligence on any or all of these stocks before buying a single one!

How I Found Penny Stocks That Pay Dividends

So the list is pretty simple, but how did I find them?

Well if you want to find your own batch of penny stocks, here’s how I do it.

I started with my favorite stock screener.

And I started looking for exciting opportunities.

Step 1- Penny Stock Screening

The first thing I did was exclude any security other than stocks.  My screener includes ETFs, mutual funds, and preferred securities… yours may or may not…

Then I limited my search to just companies traded on the major exchanges and based in the USA.

Then, I kicked out any stocks with a price over $7.

Why $7?

Since this is just a screen, I’m trying to grab a whole bunch of penny stocks.  And before you purists out there say stocks under $7 aren’t penny stocks… read this…

It’s my article:  Strange Answers To The Question: What Is A Penny Stock?

Finally, I searched for stocks that had a payout ratio over 0%… that means they paid some kind of dividend… it might have been high… or it might have been low… but they paid something.

When I did this screen, there were 113 penny stocks that paid a dividend and cropped up on the list.  It’s too many to look closely at.  So I needed to refine further…

Step 2 – Penny Stock Screening

I took the dramatic step of lowering my price range… I cut the list to stock trading below $5.

That kicked 52 companies to the curb… we’re getting closer…

Next I focused on profits.  No sense in buying a stock that pays a dividend if the company’s not making any money.  It’s hardly a responsible business practice…

I adjusted my screener to kick out any stocks without a positive P/E ratio.

To have a positive P/E ratio, you have to have some earnings!  Sounds simple, but that little maneuver eliminated another 31 companies.

So we’re now down to 29 companies that meet our criteria.

Step 3 – Penny Stock Screening

The final screen I used was eliminating stocks with low trading volumes.

If you remember, stocks with tiny trading can be easily manipulated.  And buying these penny stocks can be pricy as the market makers widen spreads and play with the fills.

I adjusted my screener to only look at stocks with average trading volumes over 50,000 shares a day.

And that gave us a list of 16 stocks to look more closely at!

Here’s the list of stocks that came up from our screen:

No. Ticker Company  Sector Industry
1 DHY Credit Suisse High Yield Bond Fund, Inc. Financial Asset Management
2 CIK Credit Suisse Asset Management Income Fund Inc. Financial Asset Management
3 CVEO Civeo Corporation Services Business Services
4 LOAN Manhattan Bridge Capital, Inc. Financial Credit Services
5 GORO Gold Resource Corp Basic Materials Gold
6 SDR Sandridge Mississippian Trust II Basic Materials Independent Oil & Gas
7 SDT SandRidge Mississippian Trust I Basic Materials Independent Oil & Gas
8 WHX Whiting USA Trust I Basic Materials Independent Oil & Gas
9 FXCM FXCM Inc. Financial Investment Brokerage – National
10 DRAD Digirad Corporation Healthcare Medical Appliances & Equipment
11 LBMH Liberator Medical Holdings, Inc. Healthcare Medical Instruments & Supplies
12 ECT ECA Marcellus Trust I Basic Materials Oil & Gas Drilling & Exploration
13 FHCO The Female Health Company Consumer Goods Personal Products
14 CIM Chimera Investment Corporation Financial REIT – Diversified
15 NCT Newcastle Investment Corp. Financial REIT – Diversified
16 RSO Resource Capital Corp. Financial REIT – Residential

Now you know how I screen for stock ideas… and you can too… just follow my steps above and modify the search criteria as you see fit… Before long, you’ll be creating lists of penny stocks to research on your own!

Good trading…

Brian Kent
Penny Stock Research

Note:  Brian Kent has been trading the markets for more than two decades and now writes and edits for PennyStockResearch.com.  You can sign up for the penny stock research newsletter a trusted source for the truth about penny stocks! Sign up today and get a free research report – http://pennystockresearch.com/free-reports/.

 

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Category: Penny Stock List

About the Author ()

Brian Kent is the Editor for PennyStockResearch.com. He also pens Penny Stock All-Stars, an investment advisory focused on discovering small-cap and micro-cap stocks that are destined to become the market's next Blue Chips.

Comments (7)

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  1. Milford says:

    I every time spent my half an hour to reaad this weblog’s articles daily along with a mug of coffee.

  2. Bev says:

    Bravo Brian! Just what I needed. A ready made shopping list with directions, in case I ever need to generate a new one.

  3. Rg1 says:

    New to penny stock. What stock screener is good to use?

  4. Claudius Pais says:

    I am a beginner to stock market. This article suits me well.
    Thank you for the simplicity of its nature.

  5. skone says:

    still learning before start investing into the market..good info and thank you for sharing!

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