Best Dividend Paying Penny Stocks

In the Indian stock market, investing in dividend-paying penny companies may generate large profits. Despite their volatility, several Indian penny companies have a track record of dividend payments. Based on past dividend yields, financial performance, and market prospects, this article will highlight India's best penny dividend stocks 2023. It contains information for both rookie and expert investors.

What are Dividend-Paying Penny Stocks?

Companies that pay out regular dividends are known as dividend-paying penny stocks. The emphasis here is not on one-time or exceptional payouts but on the regular and continuous payment of dividends. Penny stocks with dividends are often well-established corporations with a track record of returning profits to shareholders and the ability to provide a healthy dividend yield to investors.

Why Invest in Dividend-Paying Penny Stocks?

Penny stocks with dividends may be an appealing investment option for various reasons, such as:

1.    These penny dividend stocks do have the potential to produce substantial yields since their dividend yields are generally greater than those of established blue-chip stocks.

2.    Companies that pay regular dividends usually have a track record of economic stability and success, making them less risky than firms that do not pay dividends.

3.    Investment in penny stocks with high dividends may offer a consistent source of passive income which may be reinvested for long-term compounding growth.

4.    These penny dividend stocks may also have growth potential since certain micro-cap firms have untapped capacity to grow their operations and improve their share values over time.
 

Top 10 Dividend-Paying Penny Stocks to Invest in India

Here is the list of the top 10 high-dividend penny stocks to invest in:

This table shows you some of the best dividend penny stocks 2023. Now let’s know the factors to consider before investing in penny dividend stock 2023.

Factors to Consider Before Investing in Dividend-Paying Penny Stocks in India

Here are some important considerations before investing in penny stocks that pay dividends:

1.    Performance in monetary terms

It is critical to examine the company's financial accounts, which include sales, profitability, debt levels, and cash flow, before choosing the best dividend penny stocks. A corporation with good financials and minimal debt is more likely to be able to pay dividends continuously.

2.    Volatility

Because of their volatility, penny stocks that pay dividends are often considered high-risk investments. As a result, assessing the investment's degree of risk is critical, including the volatility associated with the company's business strategy, management team, and financial performance.

3.    Regulatory framework

Government regulations may substantially influence a company's financial success and the general investment environment. Examine the regulatory environment and how it affects the company's operations and dividend disbursements.

4.    Valuation

When investing in dividend-paying penny stocks in India, it's critical to assess the company's current worth and if it's priced correctly compared to its rivals. A detailed examination of the company's value may reveal if the stock is a solid investment opportunity or a possible danger. 

A cheap firm may provide a favorable investment opportunity since its stock price will likely grow. Conversely, overvalued penny stocks with high dividend yield may indicate that you have misjudged the company's potential. Buying an overvalued stock may yield disappointing results. Therefore, it is important to proceed with prudence. Investors may reduce risks and boost their chances of success by examining five crucial aspects before investing in penny stocks which give dividends in India.

5.    Trends in the industry

Watch for industry trends and changes that may influence the company's operations and profitability. Businesses adapting to shifting market trends and keeping ahead of their competition are more likely to maintain profitability and regularly pay dividends.

Performance Overview of Dividend-Paying Penny Stocks List

1.    Standard Inds

The company's market capitalization is INR 179.48 crore, while its enterprise value is INR 133.65 crore. The stock has a price-to-earnings (P/E) ratio of 0.88 and a price-to-book (P/B) ratio of 6.43 crore outstanding shares. Each share has a face value of INR 5. On a trailing twelve-month (TTM) basis, the company's book value is INR 31.77.

The firm has cash of INR 71.53 crore and debt of INR 25.70 crore. The promoters own 20.31% of the firm. The profits per share (EPS) for the TTM period are INR 31.75, while the company's revenues have increased by 5,713.29%. The return on equity (ROE) is 178.17%, while the return on capital employed (ROCE) is 158.22%.

2.    Geojit Fin. Ser.

The company's market capitalization is INR 1,025.71 crore, with advances of INR 216.65 crore. The company's outstanding shares are 23.91 crores, with a price-to-earnings (P/E) ratio of 10.49 and a price-to-book (P/B) ratio of 1.84. Each share has a face value of INR 1. On a trailing twelve-month (TTM) basis, the company's book value is INR 23.31.

The company's operational revenue is INR 480.79 crore, while its net profit is INR 142.98 crore. The promoter's stake in the firm is substantial, at 54.67%. The profits per share (EPS) for the TTM period are INR 4.09, while the company's revenues have increased by 19.02%. The return on equity is 28.02%, while the return on capital employed is 35.99%. A profit increase of 25.30% has been steady for the firm.

3.    Saven Tech.

The company's market capitalization is INR 40.03 crore, and its enterprise value is INR 34.70 crore. The company's outstanding shares are 1.09 crore, with a price-to-earnings (P/E) ratio of 9.82 and a price-to-book (P/B) ratio of 2.2. Each share has a face value of INR 1.

On a trailing twelve-month (TTM) basis, the company's book value is INR 16.74. The firm has a cash balance of INR 5.33 crore and no debt. The promoters own 42.47% of the firm. The profits per share (EPS) for the TTM period are INR 3.75, while the company's sales have increased by 37.70%. The return on equity is 21.28%, while the return on capital employed is 27.10%. A profit increase of 60.57% has been steady for the firm.

4.    Gothi Plascon

The company's market capitalization is INR 33.22 crore, while its enterprise value is INR 33.36 crore. The company's outstanding shares are 1.02 crore, with a price-to-earnings (P/E) ratio of 17.8 and a price-to-book (P/B) ratio of 2.32. Each share has a face value of INR 10.

On a trailing twelve-month (TTM) basis, the company's book value is INR 14.05. The firm has a cash balance of INR 0.28 crore and a debt of INR 0.42 crore. The promoters have a large stake in the firm (73.39%). The profits per share (EPS) for the TTM period are INR 1.83, and the company's revenues have grown by 9.99%. The return on equity is 15.11%, while the return on capital employed is 19.88%. The company's earnings increased by 12.51%.

5.    IIFL Securities

The company's market capitalization is INR 1,607.83 crore, with no advances recorded. The corporation has 30.54 crore shares in circulation, each having a face value of INR 2. The company's price-to-earnings (P/E) ratio is 5.78, while its price-to-book (P/B) ratio is 1.44.

On a trailing twelve-month (TTM) basis, the company's book value is INR 36.46. The firm recorded INR 1,060.48 crore in operational revenue and INR 284.11 crore in net profit. The promoters own 31.21% of the firm. The company's profits per share (EPS) for the TTM period are INR 9.12, while revenues have climbed by 56.94%.

The return on equity is 33.55%, while the return on capital employed is 36.96%. The profit increase for the firm has been 64.37%. The corporation's financials show a solid and successful organization with significant shareholder value.

6.    Andhra Petrochem

This company's market capitalization is 448.57 crore, with an enterprise value of 263.41 crores. The company's share capital is Rs. 8.50 crore. The company's price-to-earnings (P/E) ratio is 12.26, while its price-to-book (P/B) ratio is 0.89. The face value of the company's shares is ten dollars. The company's book value (TTM) is 59.47. The corporation has 193.25 crores in cash reserves and 8.10 crores in debt. The promoter stake in the firm is 45.04%, suggesting that the founders have considerable control. The company's profits per share (TTM) are $4.31.

In recent years, the firm has witnessed an astonishing 70.54% increase in revenue. The company's return on equity (ROE) is 56.17%, while its return on capital employed (ROCE) is 75.95%. These data suggest that the company's finances are being managed well. Ultimately, the profit growth rate of the corporation is an astounding 196.49%.

7.    Sarla Performance

The firm is worth 364.34 crores and has a market capitalization of 298.52 crores. It has 8.35 billion outstanding shares with a face value of one dollar. The price-to-earnings (P/E) ratio is 8.32, and the price-to-book (P/B) ratio is 0.67. The book value (TTM) is 53.21, and the firm has 65.70 crores in cash reserves and 131.53 crores in debt. The promoter owns 56.41% of the company, and the profits per share (TTM) is $4.29. The company's revenues increased by 68.50%, while profits increased by 306.62%. The return on equity is 13.45%, while the return on capital employed is 14.18%.

8.    Sh. Digvijay Cem

The firm has a market capitalization of 908.97 billion rupees and an enterprise value of 825.68 billion. It has 14.52 cr shares outstanding, a P/E ratio of 19.68, and a P/B ratio of 2.86. The shares have a face value of ten dollars. The book value (TTM) is 21.91, and the business has 83.29 cr in cash reserves with no debt. The promoter owns 56.01% of the firm, and the EPS (TTM) is 3.18. The company's revenue growth is 25.16%, with an ROE of 17.80% and a ROCE of 28.77%. The company's profit growth rate is 2.41%.

9.    Steel City Sec.

With no advances, the firm has a market capitalization of 88.91 Cr. The company's entire share capital is 1.51 billion. With a face value of 10, the firm has a P/E ratio of 7.71 and a P/B ratio of 0.91. The company's book value (TTM) is 64.76. The company's operational revenue is 63.54 Cr., with a net profit of 12.93 Cr. The promoters own 65.68% of the firm. 7.63 is the EPS (TTM). The company's revenues are up 21.38%, while profits are up 38.71%. The company's ROE is 15.12%, and its ROCE is 21.45%.

10.    CESC

The firm has a market capitalization of $9,119.92 billion and an enterprise value of 16,196.53 billion. The company's entire share capital is 132.56 Cr. With a face value of one, the corporation has a P/E ratio of 11.04 and a P/B ratio of 0.88. The book value (TTM) of the firm is ₹ 78.51. The corporation has $1,274.87 million in cash and $8,351.48 million in debt. The promoters own 52.11% of the firm. The TTM EPS is 6.23. The company's revenues are up 5.38%, while profits are up 0.16%. The company's ROE is 8.19%, and its ROCE is 9.31%.

Top Dividend-Paying Penny Stocks List

Conclusion

Penny stocks with monthly dividends in India might be an appealing investment option for individuals wishing to diversify their portfolio. Investors, however, should be aware of the possible hazards involved with penny stocks and undertake extensive research before investing. In 2023, the dividend-paying penny stocks described in this article have a strong potential for growth and income. Investors may make informed judgments and earn big investment returns by following market trends and business performance. Consider including these top dividend-paying penny companies in your portfolio to take advantage of their benefits.

FAQs on Dividend-Paying Penny Stocks

1.    Which Indian companies are on the dividend-paying penny stocks list?

Developing a list of dividend-paying penny stocks entails screening for firms that fulfill penny stock and dividend-paying requirements and additional considerations. Yet, a firm whose stock price is less than ten rupees and pays dividends falls into the category of dividend-paying penny stocks.

2.    What is the future of penny stocks in India?

Nobody knows what the future of penny stocks in India will be. However, it is crucial to know that penny stocks are often seen to be more volatile and risky than other forms of equities. They are prone to considerable price swings and rapid and unexpected changes in market circumstances.

3.    How can I invest in dividend-paying penny stocks using the 5paisa App?

Using the 5paisa App, you can buy penny stocks that pay dividends 2023 by downloading the app, signing into your account, going to the "Penny Stocks" option in the stock trading section, choosing a company, evaluating its financial standing, entering the number of shares you want to buy and the price, confirming the details of your order, paying for the shares, and then waiting for the order to be executed and the shares to be credited to your demat account.