In this article, we will look at 10 penny stocks that pay dividends. To skip our detailed analysis of dividend investing, you can go directly to the 5 Penny Stocks that pay dividends.

Penny stocks typically trade for less than $5 per share. Generally, most penny stocks are traded over the counter, or OTC, transactions or similar methods. And while these stocks are generally considered high-risk, situational factors born out of the rise of retail investors in 2020 have begun to make them an attractive investment vehicle for many investors.

Small Cap Stocks vs. Large Cap Stocks

While large-cap or blue-chip stocks like, Inc. (NASDAQ:AMZN), Intel Corporation (NASDAQ:INTC), Apple Inc. (NASDAQ:AAPL), and JPMorgan Chase & Company (NYSE:JPM) , among others, have generally dominated investor circles in the past, 2020 has shown the rise of penny stocks and their popularity. This boom led to around 75% increases in 10 of the best performing stocks in the Russell 3000 Small Cap Stock Index in the first three weeks of 2021. Additionally, retail broker eToro reported the registration of more than 380,000 new users in the first two weeks of 2021, adding to the five million existing users. This growth in the platform’s user base has highlighted the immense growth in popularity of penny stocks among investing circles in 2021.

10 Penny Stocks That Pay Dividends

Photo by Annie Spratt on Unsplash

Our Methodology

We’ve included dividend-paying stocks with yields of 2% and above and stock prices below $10.

Penny Stocks That Pay Dividends

10. US Global Investors, Inc. (NASDAQ: GROW)

Number of hedge fund holders: 7

Dividend yield: 1.55%

US Global Investors, Inc. (NASDAQ: GROW), a public investment manager, deals primarily with investment companies. It also provides mutual investment vehicle services and manages 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 US Global Investors, Inc. (NASDAQ: GROW), with a total stake value of $5.1 million.

Such as, Inc. (NASDAQ: AMZN), Intel Corporation (NASDAQ: INTC), Apple Inc. (NASDAQ: AAPL) and JPMorgan Chase & Company (NYSE: JPM), US Global Investors, Inc. (NASDAQ: GROW ) is a stock investors should watch today.

Artko Capital, an investment management firm, mentioned US Global Investors, Inc. (NASDAQ: GROW) in its fourth quarter 2020 letter to investors. Here’s what they said:

“US Global Investors (GROW) – In 2Q 2020, we took a 4% position in a small asset manager with the expectation that with the eventual market recognition that its airline-focused ETF, JETS, went from less than $100 million in assets to over $1.2b, would result in a substantial price adjustment.In short, rather than playing in the wild casino of 2020 markets, we instead wanted to own the casino operator This was a short term investment, focused on profit events and while we were hoping for a healthier pop, we eventually exited most of our position in low to mid $3 for a 30% blended return, the capital from which we committed in our purchase of ECOM, as we generally prefer to hold less risky, longer-term positions in the core portfolio.”

9. Yamana Gold Inc. (NYSE: AUY)

Number of hedge fund holders: 15

Dividend yield: 2.87%

Yamana Gold Inc. (NYSE: AUY) is a producer of precious metals and is among the most popular dividend-paying penny stocks. 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 November, National Bank analyst Mike Parkin holds an outperform rating for shares of Yamana Gold Inc. (NYSE:AUY).

According to our hedge fund data, 15 hedge funds were long Yamana Gold Inc. (NYSE:AUY) in the third quarter, with holdings 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 company, is a provider of compression services for the production of natural gas and oil.

In November, CSI Compressco LP (NASDAQ:CCLP) was upgraded to Hold at Stifel. Analyst Selman Akyol assigned the rating to the stock.

For the third quarter, a hedge fund was long on 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 United States. Its flagship property is the Aguila Project with 19 mining concessions covering 24,372 hectares in Oaxaca, Mexico.

At the end of Q3 2021, 10 of the 867 hedge funds tracked by Insider Monkey held stakes in Gold Resource Corporation (NYSE: GORO) worth approximately $5.8 million. Of these hedge funds, Renaissance Technologies was again the company’s largest shareholder, 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 tankers.

Jefferies analyst Randy Giveans has a Hold rating on shares of Nordic American Tankers Ltd (NYSE:NAT) from November.

Six of the 867 hedge funds in our database had stakes in Nordic American Tankers Ltd (NYSE:NAT) in the third quarter, worth about $7 million. Millennium Management was the largest shareholder in the stock, holding 1,830,436 shares worth $4.7 million.

As, 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 that elite hedge funds are cramming into.

Click to read on and see 5 Penny Stocks That Pay Dividends.

Suggested items:

Disclosure: none. 10 Penny Stocks That Pay Dividends is originally published on Insider Monkey.