Penny stocks are known for being high-risk investments that are often speculative in nature. They are typically growth-oriented and do not usually pay dividends. However, there are some dividend-paying penny stocks that offer dividends yielding more than 8%.
The definition of a penny stock can vary, ranging from shares below $1 to those below $5 or even below $10 in some cases. For the purpose of this article, we will consider shares trading for nearly $8 as well as those trading for less than $4.
Investors who are interested in penny stocks are usually seeking quick returns. The dividend-paying penny stocks discussed in this article are expected to experience significant growth while also providing substantial income through their dividends.
One such stock is Sasol (SSL), a company that has been performing well following the release of its Q4 and FY results. The company is profitably divesting itself of five hospitals, which is expected to generate a cap rate of 7.4% and proceeds of $17 million. This indicates that Sasol is capable of successfully investing in hospital assets and profiting from them.
Another dividend-paying penny stock to consider is Medical Properties Trust (MPW). The company recently reported a dividend yield of more than 15% and shares are currently trading for slightly under $4. Despite facing challenges in late 2023, Medical Properties Trust appears to be on a positive trajectory based on recent results. As the largest hospital landlord in the U.S., the company is an attractive option for dividend investors.
In conclusion, dividend-paying penny stocks can offer investors the potential for growth as well as a source of income through dividends. It is important for investors to carefully research and consider their investment options before making any decisions.