VTG, FEX & BSE: Three ASX penny stocks paying highest dividend

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VTG, FEX & BSE: Three ASX penny stocks paying highest dividend

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 VTG, FEX & BSE: Three ASX penny stocks paying highest dividend
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Highlights

  • Dividend is an extra income investors earn over and above the capital appreciation of their stock holdings.
  • VTG, FEX and BSE are the highest dividend paying penny stocks on the ASX.
  • Dividend yield should not be used as a sole criterion for analysing an investment opportunity.

While investing in stock market, capital appreciation of your portfolio is not the only way to enjoy profits. Dividends are an added incentive, which lets investors get some extra cash frequently on their initial investment in the company.

ASX penny stocks to buy 2022

Image Source: © 2022 Kalkine Media®

Generally, big companies are looked at when it comes to earning regular dividend, which is not a bad idea. But there are a few ASX penny stocks as well that offer lucrative dividend yields and are trading at a mouth-watering price of less than a dollar. Let us have a look at some of these stocks.

(Please note, dividend yield should not be used as a sole criterion for analysing an investment opportunity.)

Read More: Which are the three ASX penny stocks with highest market cap?

  1. Vita Group Limited (ASX:VTG)

Vita Group is an Australian retailer, operating under its medical aesthetics brand - Artisan Aesthetic Clinics. The company has a market capitalisation of AU$55.06 million and has been profitable for the last few years, which is not so common for a micro-cap company.

Due to consistent profitability, the company has been cheering its investors via regular dividend payouts for quite some time now. In CY21, the company paid dividend three times, totalling to AU$0.47 per share, translating into a dividend yield of a massive 34.6%. The current price of VTG shares stands at AU$0.33, as of noon on 20 April 2022.

  1. Fenix Resources Limited (ASX:FEX)

Fenix Resources is an iron ore production company based in Western Australia and has a market capitalisation of AU$175.51 million. In FY21, the company recorded a massive profit of AU$49 million, turning profitable after incurring losses for several years, due to which it paid a lucrative 100% fully franked dividend of AU$0.053 per share.

One thing to note is, it is not a regular dividend-paying company and a windfall profit last year resulted in this dividend payout. The current share price of FEX is AU$0.34, making the stock trade at a dividend yield of 22.1%.

  1. Base Resources Limited (ASX:BSE)

The last dividend paying stock on our list is Western Australia-headquartered mineral sands producer Base Resources. A consistently profitable company, Base Resources is a pure play for investors in the mineral sands space and is listed in both Australia and the UK. It has a market capitalisation of AU$388.7 million.

In CY21, the company offered a total of AU$0.07 per share of dividend and in CY22 so far, it has paid AU$0.03 per share. The current stock price of BSE shares is AU$0.33, which means the shares are trading at a dividend yield of 21.2%.

Bottom Line

Dividend yield is a good valuation metric denoting how much return on investment (in the form of dividend) an investor has received in the last one year. However, it can be influenced by many factors such as a sharp fall in the share price which calls for a more holistic approach to analyse an investment opportunity rather than solely depending on dividend yield.

Read More: ASX, CHN & PRN – 3 ASX miners that plunged the most in Q1 2022

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