In this article, we will be taking a look at 10 penny stocks that pay dividends. To skip our detailed analysis of dividend investing, you can go directly to see the 5 Penny Stocks that Pay Dividends.
Penny stocks usually trade under $5 per share. Generally, most penny stocks are traded through over-the-counter, or OTC, transactions or similar methods. And while these stocks are typically considered to be high-risk, situational factors born through the rise of retail investors in 2020 have begun making them an interesting investment vehicle for many investors.
Small-Cap versus Large-Cap Stocks
While large-cap or blue-chip stocks like Amazon.com, Inc. (NASDAQ:AMZN), Intel Corporation (NASDAQ:INTC), Apple Inc. (NASDAQ:AAPL), and JPMorgan Chase & Company (NYSE:JPM), among others, have typically dominated investor circles in the past, 2020 showed the rise of penny stocks and their popularity. This boom resulted in 10 of the best-performing stocks on the small-cap Russell 3000 share index surging by about 75% during the first three weeks of 2021. Additionally, the retail broker eToro reported the registration of over 380,000 new users in the first two weeks of 2021, adding on to the existing five million users. This growth in the platform’s userbase showcased the immense growth in penny stock popularity among investor circles in 2021.
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Our Methodology
We have included dividend stocks with yields of 2% and above and share prices under $10.
Penny Stocks that Pay Dividends
10. U.S. Global Investors, Inc. (NASDAQ:GROW)
Number of Hedge Fund Holders: 7
Dividend Yield: 1.55%
U.S. Global Investors, Inc. (NASDAQ:GROW), a publicly owned investment manager, primarily deals with investment companies. It offers services to pooled investment vehicles as well, and managed equity and fixed income mutual funds for its clients.
For the third quarter of 2021, our hedge fund data shows seven hedge funds were long U.S. Global Investors, Inc. (NASDAQ:GROW), with a total stake value of $5.1 million.
Like Amazon.com, Inc. (NASDAQ:AMZN), Intel Corporation (NASDAQ:INTC), Apple Inc. (NASDAQ:AAPL), and JPMorgan Chase & Company (NYSE:JPM), U.S. Global Investors, Inc. (NASDAQ:GROW) is a stock investors should be on the lookout for today.
Artko Capital, an investment management company, mentioned U.S. Global Investors, Inc. (NASDAQ:GROW) in its fourth-quarter 2020 investor letter. Here’s what they said:
“US Global Investors (GROW) – In 2Q 2020 we took a 4% position in a tiny asset manager with the expectation that with the eventual market recognition that its airline focused ETF, JETS, has grown from sub $100mm in assets to over $1.2b, would result in a substantial price adjustment. In short, rather than gamble in the wild casino of 2020 markets, we wanted to own the casino operator instead. This was a short term, earnings event driven investment and while we were hoping for a healthier pop, in the end we exited most of our position in low to mid $3s for a blended 30% return, the capital from which we committed to our purchase of ECOM, as our preference is usually to hold less risky, more longer-term oriented Core Portfolio positions.”
9. Yamana Gold Inc. (NYSE:AUY)
Number of Hedge Fund Holders: 15
Dividend Yield: 2.87%
Yamana Gold Inc. (NYSE:AUY) is a precious metal producer, and among the more popular penny stocks that pay dividends. It has gold and silver production, development stage properties, exploration properties, and land positions in the Americas, including Canada, Brazil, Chile, and Argentina.
As of this November, National Bank analyst Mike Parkin holds an Outperform rating on Yamana Gold Inc. (NYSE:AUY) shares.
According to our hedge fund data, 15 hedge funds were long Yamana Gold Inc. (NYSE:AUY) in the third quarter, with stakes worth $127 million.
8. CSI Compressco LP (NASDAQ:CCLP)
Number of Hedge Fund Holders: 1
Dividend Yield: 2.6%
CSI Compressco LP (NASDAQ:CCLP), an energy sector company, is a provider of compression services for natural gas and oil production.
In November, CSI Compressco LP (NASDAQ:CCLP) was upgraded to Hold at Stifel. Analyst Selman Akyol placed the rating on the stock.
For the third quarter, one hedge fund was long CSI Compressco LP (NASDAQ:CCLP), with a total stake value of $854,000. In the second quarter, two hedge funds were long the stock with a total stake value of $891,000.
7. Gold Resource Corporation (NYSE:GORO)
Number of Hedge Fund Holders: 10
Dividend Yield: 2.4%
Gold Resource Corporation (NYSE:GORO) is a materials company that develops and sells gold and silver in Mexico and the US. Its flagship property is the Aguila project with 19 mining concessions covering 24,372 hectares in Oaxaca, Mexico.
By the end of the third quarter of 2021, 10 hedge funds out of the 867 tracked by Insider Monkey held stakes in Gold Resource Corporation (NYSE:GORO) worth roughly $5.8 million. Of these hedge funds, Renaissance Technologies was again the largest shareholder of the company, with 821,613 shares worth $1.3 million.
6. Nordic American Tankers Ltd (NYSE:NAT)
Number of Hedge Fund Holders: 6
Dividend Yield: 3.4%
Nordic American Tankers Ltd (NYSE:NAT) is a tanker company on our list of penny stocks that pay dividends. It acquires and charters double-hull tankers in Bermuda and internationally, and operates a fleet of 25 Suezmax crude oil tankers.
Jefferies analyst Randy Giveans has a Hold rating on Nordic American Tankers Ltd (NYSE:NAT) shares as of this November.
Six out of 867 hedge funds in our database held stakes in Nordic American Tankers Ltd (NYSE:NAT) in the third quarter, worth $7 million approximately. Millennium Management was the largest stakeholder in the stock, holding 1,830,436 shares worth $4.7 million.
Like Amazon.com, Inc. (NASDAQ:AMZN), Intel Corporation (NASDAQ:INTC), Apple Inc. (NASDAQ:AAPL), and JPMorgan Chase & Company (NYSE:JPM), Nordic American Tankers Ltd (NYSE:NAT) is a stock elite hedge funds are piling into.
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Disclosure: None. 10 Penny Stocks that Pay Dividends is originally published on Insider Monkey.
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