Five ASX penny stocks for dividend fans


  • Penny stocks paying high dividends could be an ideal choice for dividend seekers with high-risk appetite.
  • BSE, AMO, SSM are some of the penny stocks offering decent dividends.
  • Notably, high dividend yields for these high-risk penny stocks might not be sustainable in the long run.

Some investors are always on the prowl for high dividend paying companies while other investors with high-risk appetite prefer to add penny stocks to their portfolio. However, if you are someone who belongs to both these categories and are looking to hunt for penny stocks with attractive dividends, we’ve got you covered.

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There are a few penny stocks on the ASX that are offering attractive dividend yields, which could be ideal for investors who are looking for the best of both worlds. On that note, let’s have a look at five ASX penny stocks with attractive dividends (as of 10 September 2021).

Related article: Five ASX stocks under 50 cents which are in bull run

  1. Base Resources Limited (ASX:BSE)

Base Resources is an ASX-listed African small-cap mineral sands producer with a market capitalisation of AU$371 million. It has recently completed a prefeasibility study at Bumamani and Kwale North Dune deposits on the potential for higher grade mining.

The capital cost for mining operations, infrastructure and land acquisition is estimated at US$13.6 million. The BSE share price last closed at AU$0.28, with a dividend yield of 22.22%.

  1. Ambertech Limited (ASX:AMO)

Ambertech is one of the largest audio-visual equipment distributors, with a market capitalisation of AU$25.75 million. The company recorded a revenue of AU$80.1 million in FY21, and a net profit of AU$5.1 million. During the same period, the company declared a final dividend of 1.6 cents per share.

This was significantly higher than last year’s dividend of 0.3 cents per share. The AMO share price last closed at AU$0.34, with a dividend yield of 13.2%.

  1. Vita Group Limited (ASX:VTG)

Vita Group is a retail company operating under brands such as Vita Enterprise Solutions, Sprout, etc. As per its FY21 results, the company distributed a fully-franked final dividend of AU$4 million, equating to 2.4 cents per share.

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Revenue from its Artisan business grew 41% to AU$28.4 million in FY21, a primary reason for high dividend declaration. The VTG share price closed at AU$0.86 on 10 September 2021, with a dividend yield of 13.1%.


Five ASX penny stocks for dividend fans


  1. Service Stream Limited (ASX:SSM)

Service Stream is an ASX-listed construction engineering company, declaring a 2.5 cents per share of interim dividend in FY21. The company skipped on the final dividend payment to assist with funding the Lendlease Services acquisition. However, once it wraps up the acquisition, the company plans to resume paying dividends.

Revenue of AU$804.2 million and a 33.8% increase in net profit after tax to AU$38.9 million were the major highlights of SSM’s remarkable performance in FY21. The SSM share price closed Friday’s session at AU$0.82, translating to a dividend yield of 12.7%.

  1. Jupiter Mines Limited (ASX:JMS)

Jupiter Mines is the last company on our list, having a market capitalisation of AU$470.15 million. On 9 September, the company said that Tshipi é Ntle Manganese Mining Proprietary Limited had declared a dividend of ZAR88 million for 1HFY22. Jupiter holds 49.9% beneficial interest in Tshipi.

Jupiter will receive around ZAR41.7 million (approx. AU$3.8 million) apart form ZAR33 million (approx. AU$3 million) in marketing profits. The JMS share price last closed at AU$0.24 on Friday, equating to a dividend yield of 12.5%.

Read more: Five ASX penny stocks that started September on a bright note

Bottom line

Although, some penny stocks are offering an attractive dividend yield, investors need to take into account the fact that these lucrative yields might not sustain for a long run and could be a result of a one-time windfall profits.

Also, sometimes a jacked up dividend yield is the result of a major drop in the share price of a firm, which might bring in question the health of the business.   

Read More: Five ASX penny stocks that turned multi-baggers in 2021





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