Penny Stocks with High Dividends: Top Picks for 2024
Introduction
If you're looking for small investments with big rewards, penny stocks with high dividends might be the perfect option for you.
Why Invest in Penny Stocks with High Dividends?
Investing in stocks is very good options to get higher returns. When you have a small budget and want to invest in stock market, which gives attractive returns, everyone looks for Penny stocks. Penny stocks are affordable, making them an attractive choice for new investors. But did you know that some penny stocks also pay dividends?
“Dividends are like small rewards for being a shareholder, making these stocks even more appealing”
We have considered some Penny Stocks which pay higher dividends recently. These penny stocks are mentioned below.
Taparia Tools
Taparia tool is the one of the most popular hand tools manufacturing company in India. With the market capitalisation of 13.3 crore this company is a small cap company. This company is incorporated in 1969. The current stock price of this company is 8.76 but it is paying dividend of Rs.60 per year. Which is far more than its current market price. Recently company has announced the dividend of Rs.25 per share. Share price of Taparia Tools is 8.76 but it’s book value is Rs.229.
- Upcoming Dividend : Rs.25 per share (29 Nov 2024)
Fortis Malar Hospitals Ltd
Market Capitalization of this hospital is 100 crore and company is almost debt free. The company has already paid the dividend of Rs.42.50 per share in 2024 year till now.
Upcoming Dividend : Not Yet Announced
Multibase India Ltd
Multibase India Ltd, incorporated in 1991, has carved out a niche for itself as a reliable player in the specialty chemicals market. The company specializes in manufacturing thermoplastic elastomers and silicone-based products that cater to diverse industries like automotive, construction, and consumer goods.
At its current price of ₹467 as on 20-Nov-2024 and paying dividend of Rs.57 per year , the stock has a market capitalization of ₹590 crore and a price-to-earnings (P/E) ratio of 39.5. Although slightly high for a penny stock, the company’s strong dividend yield and consistent performance justify its valuation.
Upcoming Dividend : Rs.53 Per Share (27-Nov-2024)
Xchanging Solutions Ltd
Xchanging Solutions Ltd is a global IT services provider with a robust presence across 70+ countries and a strong base of operations in India. Established as part of the DXC Technology Group, Company has Market Capitalisation of Rs.1175 Crores. In 2004 Company has already paid dividend of Rs.19.
Key Financials
Market Capitalization: ₹1,175 Cr.
Current Price: ₹105
Dividend Yield: 30.4%
Upcoming Dividend : Not Yet Announced
Indian Oil Corporation Ltd
Indian Oil Corporation Ltd (IOCL) is one of India’s leading energy companies and a Maharatna PSU. It plays a pivotal role in the country’s energy sector with interests spanning the entire hydrocarbon value chain. This company is a large cap with Market Capitalisation of Rs.188000 Crore. It’s share price is below 150 that’s why I have included this stock in this list.
With a dividend yield of 9.01%, IOCL is a great choice for income-focused investors. Its stable profitability and government backing ensure regular payouts. Company has paid dividend of Rs.7 rupees per share till now in 2024.
Indian Oil Corporation Ltd is a well-diversified energy company with a dominant market position, robust infrastructure, and strong financials. Its focus on innovation, green energy, and infrastructure expansion underscores its commitment to long-term growth.
For investors seeking a mix of stability, growth, and income, IOCL is a compelling option in India’s energy sector.
Upcoming Dividend : Not Yet Announced
Risks of Penny Stocks
Before diving in, it’s essential to understand the risks:
- Higher Volatility: Penny stocks can change in value quickly.
- Less Information Available: Small companies may not have as much information available for investors.
- Low Liquidity: These stocks might not be easy to sell quickly.
Conclusion
Penny stocks with high dividends can be an exciting option for investors with limited funds and it is a great way to earn passive income while diversifying your portfolio. However, do your research and invest wisely. With patience and a bit of caution, these affordable stocks could add a little extra to your portfolio.
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