Is Companhia Energetica Minas Gerais (CIG) the Best High-Dividend Penny Stock to Buy Now?

Popular dividend stocks like Coca-Cola Co, Altria Group Inc, and PepsiCo Inc are often in the spotlight. However, there are some lesser-known small companies that offer high dividends but are often overlooked by the market and analysts. One such company is Companhia Energetica Minas Gerais, a notable name in the energy industry.

Companhia Energetica Minas Gerais ADR Repstg One Pref Shs (NYSE:CIG) is considered one of the best dividend-paying penny stocks to buy by smart money investors. According to data from Insider Monkey, 13 hedge funds held long positions in the company at the end of 2023 out of a total of 933 hedge funds.

In the fourth quarter, Companhia Energetica Minas Gerais reported net revenue of R$9.9 billion and a net profit of R$1.9 billion. Some of the major stakeholders in the company include Nathaniel August’s Mangrove Partners, billionaire Israel Englander’s Millennium Management, and John Overdeck and David Siegel’s Two Sigma Advisors.

While Companhia Energetica Minas Gerais is a good high-dividend penny stock, Insider Monkey’s analysis of hedge funds suggests that there may be better options available. It’s essential to consider all factors before making investment decisions.

In conclusion, Companhia Energetica Minas Gerais is a promising high-dividend penny stock, but investors should explore other options as well. Make sure to conduct thorough research before making any investment decisions.