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Highlights
- Generally, large caps are more famous for the dividend income, all thanks to their massive earnings bases.
- VTG, FEX and BSE are some ASX penny stocks trading at the highest dividend yield on the ASX.
- One-time windfall profit or a significant fall in the share price may influence the dividend yield of penny stocks.
When it comes to investing, some investors love that extra cash from their investments in the form of a dividend. Whenever a company makes a profit, it may distribute some part of it in the form of dividends.
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Generally, large caps are more famous for their dividend income, all thanks to their massive earnings bases. However, some penny stocks often come on the dividend list and allow investors to get that extra squeeze from their penny invested in these small caps. Let us have a look at three ASX penny stocks with the highest dividend.
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- Vita Group Limited (ASX:VTG)
Vita Group is an Australian company which owns and operates a growing network of aesthetic clinics through its own premium medical aesthetics brand, Artisan Aesthetic Clinics. The company has a market capitalisation of AU$52.16 million and clocked a revenue of AU$633.53 million in FY21 with a net profit of AU$26.34 million.
In November 2021, the company paid a massive dividend of AU$0.39 per share, totalling a total dividend payout of AU$0.414 per share in CY21, translating to a massive dividend yield of 36.3%. On 29 March 2022, the VTG share price jumped 4.76% to the last traded price of AU$0.33 by 12:30 PM AEDT.
- Fenix Resources Limited (ASX:FEX)
Fenix Resources is a small-cap Western Australia-based iron ore producer, having a market capitalisation of AU$134.21 million. In FY21, the company posted record revenue of AU$114.5 million, leading to a net profit of AU$49.04 million. The profit jump helped the company declare a fully franked dividend of AU$0.053 per share in October 2021.
Due to a massive dividend, the company’s dividend yield surged to a mouth-watering 28.8%. On 29 March 2022, the FEX share price fell 1.92% to the last traded price of AU$0.255 by 12:30 PM AEDT.
- Base Resources Limited (ASX:BSE)
The last penny stock on our list with the highest dividend yield is a mid-cap “pure” mineral sands explorer and is listed in both Australia and the UK. The company has a market capitalisation of AU$394.6 million and clocked a net profit of AU$10.98 million in FY21 over a revenue of AU$198.24 million.
The company’s latest dividend payment of AU$0.03 is due on 31 March 2022 and had declared a total dividend of AU$0.07 per share in CY21. The current dividend yield of BSE shares is 20.9% and the stock is up 2.95% to the last traded price of AU$0.345 on 29 March 2022 by 12:30 PM AEDT.
Bottom Line
Earnings of penny stocks are highly uncertain to predict due to limited financial history and mostly poor financials. One-time windfall profit or a significant fall in the share price may influence the dividend yield of penny stocks. Therefore, investors must do proper due diligence before investing in stocks for dividend income.
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