From FEX to VIP: Five ASX penny stocks that pay dividends

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Highlights

  • Penny stocks are stocks which trade at less than AU$1.

  • These stocks can surprise with significant upside during a bull market.

  • Since penny stocks carry high risks, one needs to do some research before taking any exposure in them.


Penny stocks belong to firms with low market capitalisation and trade for less than a dollar. These stocks are lapped up by small investors due to their inherent ability to surprise with significant upside during a bull market. So, the main reason behind their attractiveness to a section of investors is their capability to generate quick gains in a relatively small period.

On this note, let’s discuss these five ASX-listed penny stocks which pay dividends:

NOTE

  • Since penny stocks carry high risks, one needs to do some research before taking any exposure in them.
  • High dividend-paying shares are not good always. A stock’s dividend yield might be on the higher side due to a significant fall in its stock price, implying financial trouble that could impact its ability to deliver future dividends.

Fenix Resources Ltd (ASX:FEX)

Fenix Resources is an iron ore producer based in Western Australia.

The company with over AU$157-million market capitalisation has an annual dividend yield of 17.21% (as of Wednesday’s share price closing). It was in September 2021 that Fenix Resources paid its last full-year dividend. The company didn’t distribute an interim dividend. Also, there were no franking credits available.

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Cash Converters International Ltd (ASX:CCV)

Cash Converters is a franchisor of second-hand stores, which operates under the Cash Converters name.

The company with over AU$144-million market capitalisation has an annual dividend yield of 8.69%. In the calendar year 2021, Cash Converters began paying dividend again after 2016. On 14 April 2022, the firm paid a dividend of AU$0.01 for CY22.

Lindsay Australia Ltd (ASX:LAU)

Lindsay Australia has three core businesses namely Rural, Fresh Logistics, and Transport.

The company with over AU$116-million market capitalisation has an annual dividend yield of 4.93%. Lindsay Australia has consistently provided dividends since 2011. The company’s board recently declared an interim dividend of 0.014 per share. The record date was 25 March 2022, and the ex-dividend date of this dividend was 24 March 2022.

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Vita Group Ltd (ASX:VTG)

Vita Group operates a network of aesthetic clinics via its premium medical aesthetics brand -- Artisan Aesthetic Clinics.

The company with over AU$36-million market capitalisation has an annual dividend yield of 39.02%. Vita’s board recently declared an interim dividend of 0.133 per share. The record date was 6 May 2022, and the ex-dividend date was 4 May 2022.

VIP Gloves Ltd (ASX:VIP)

VIP Gloves is focused on the production of a wide range of nitrile gloves, which are used in hospitals, pharma, laboratories, food preparation and other purposes.

The company with over AU$9-million market capitalisation has an annual dividend yield of 19.16%. VIP Gloves’ sales fell 10% on account of global supply chain issues in the quarter ending 31 March 2022. The total revenue dipped 21%.


 


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