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Highlights
The dividend paying capacity can make a stock highly attractive to investors.
Dividends help investors earn extra cash from their investments into stocks.
While usually large caps are known to pay dividends, there are some penny stocks too which fork out dividends.
Profitable companies, generally, share a part of their cash earnings with their shareholders in form of dividends. This is what makes dividend paying stocks special to investors as they get to earn extra cash from their investments.
Generally, large-cap firms are known to pay regular dividends, making them the first choice of investors, due to their heavy cash earnings. However, there are few penny stocks as well which are part of this group, as they distribute some part of their profits via dividends.
NOTE: - High dividend-paying stocks are not always good for all. It is also possible that a stock’s dividend yield might have increased on account of a sharp fall in its stock price. It implies that the firm is facing some financial trouble, which could in turn adversely impact its ability to deliver dividends in future.
On this note, let’s discuss five ASX-listed penny stocks under AU$1, which pay dividends to their shareholders:
Vita Group Ltd (ASX:VTG)
Vita Group is an Australian firm which owns and operates a growing network of aesthetic clinics through its own premium medical aesthetics brand, Artisan Aesthetic Clinics.
By 11 AM (AEST), the company with over AU$46 million m-cap was trading at AU$0.28, up 3.77%.
The company recently announced an interim dividend of 0.133 per share with its record date on 6 May 2022. The ex-dividend date of this dividend was 4 May 2022.
In November 2021, the company paid a massive dividend of AU$0.39 per share, amounting to a total dividend payout of AU$0.414 per share in CY21.
Fenix Resources Ltd (ASX:FEX)
Fenix Resources is a small-cap Western Australia-based iron ore producer.
By 11 AM (AEST), the company with over AU$152 million m-cap was trading at AU$0.30, up 1.69%.
The company’s last full year dividend was paid in September 2021. Fenix didn’t pay an interim dividend and there were no franking credits available. The company’s board is slated to announce its decision on the full-year dividend for FY22 in August.
Base Resources Ltd (ASX:BSE)
Base Resources is a mid-cap “pure” mineral sands explorer and is listed in both Australia and the UK.
By 11 AM (AEST), the company with over AU$365 million m-cap was trading at AU$0.30, down 1.61%.
The latest dividend forked out by the company was AU$0.03, paid on 31 March 2022. Base Resources had declared a total dividend of AU$0.07 per share in CY21.
Kina Securities Ltd (ASX:KSL)
Kina Securities is a diversified financial services provider in Papua New Guinea.
By 11 AM (AEST), the company with over AU$246 million m-cap was trading at AU$0.86, up 0.58%.
The company paid 100% franked dividend of AU$0.06 on 8 April 2022, its first payout for CY22. In CY21, KSL paid a dividend of AU$0.077 per share.
Cash Converters International Ltd (ASX:CCV)
Cash Converters is a franchisor of second-hand stores and generates revenues from franchising, store operations, personal and vehicle finance.
By 11 AM (AEST), the company with over AU$153 million m-cap was trading flat at AU$0.245.
In CY21, the company started paying dividend again after 2016. The total dividend declared in CY21was AU$0.02 per share. The firm paid AU$0.01 on 14 April 2022 for CY22.
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