Did You Know Penny Stocks Pay Dividends?
Did you know that some penny stocks pay dividends?
You dont 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 Ill spare you that long drawn out story today.
Instead, Im going to give you a list of penny stocks that pay dividends right now then Im 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 doesnt 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 hasnt 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 doesnt make it safe or special. Youve still got to do the research. Youve 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 youd normally do before investing in a stock.
You do perform due diligence on stocks before trading them right? Good
So heres the list of penny stocks paying a dividend right now.
A List Of Penny Stocks That Pay Dividends
The list is a simple one
Heres a screen shot of the list of stocks that came up on my search. I sorted them by industry group so theyd be easy to look for
If for some reason the graphic below doesnt show up, Ill include a list of the companies at the end of the article
Now a few notes
First there are some Funds in the list not sure why they came up. Clearly the database were searching on isnt 100% perfect.
Also youll 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 Id kick those to the curb rather quickly.
Clearly this list isnt 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, heres 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.
Since this is just a screen, Im trying to grab a whole bunch of penny stocks. And before you purists out there say stocks under $7 arent penny stocks read this
Its 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. Its 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 were getting closer
Next I focused on profits. No sense in buying a stock that pays a dividend if the companys not making any money. Its 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 were 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!
Heres the list of stocks that came up from our screen:
|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, youll be creating lists of penny stocks to research on your own!
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/.
Category: Penny Stock List
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