Top 4 penny dividend stocks of 2021

Companies that have a market capitalization of somewhere between C$ 60 and C$ 300 million are known as penny-cap companies. Investors with a small amount of surplus money for investments can invest in such stocks as these are priced under C$ 5.

While not many penny stocks offer dividends, here are some dividend-paying penny stocks in Canada that one can explore while planning for investment.

Also read: Which Canadian bank stocks to buy as dividends go up?

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1.     Black Diamond Group Limited (TSX:BDI)

Black Diamond Group Limited provides space rentals and workforce accommodation solutions in the United States, Canada and Australia.

The Calgary, Alberta-based business service company is scheduled to pay a quarterly dividend of C$ 0.013 apiece on January 14, 2022, against an ex-dividend date of December 30, 2021.

Black Diamond saw its total revenue increase by 164 per cent year-over-year (YoY) to 108.8 million in the third quarter of fiscal 2021. Its net income grew to C$ 5.7 million in Q3 FY2021, up from a net loss of C$ 0.7 million in the same quarter a year ago.

BDI stock delivered a return of about 35 per cent in the past three months. The business service stock also grew by nearly 125 per cent in the last year.

Its stock closed at C$ 4.96 apiece on Tuesday, December 7, up by approximately seven per cent.

2.     PHX Energy Services Corp (TSX:PHX)

PHX Energy Services Corp provides drilling technology and services to oil and gas companies.

PHX saw its revenue grow by 152 per cent YoY to C$ 93.33 million in the third quarter of FY2021. It recorded net earnings of C$ 4.20 million in the third quarter of fiscal 2021 compared to a loss of C$ 1.59 million in the same quarter a year ago.

The energy service provider also hiked its quarterly dividend to C$ 0.05 apiece in its latest quarter.

PHX stock ascended by over 95 per cent in the last year. Its stock closed at C$ 4.57 apiece on December 7, up by roughly five per cent.

3.     Alvopetro Energy Ltd (TSXV:ALV)

Alvopetro Energy Ltd reported a YoY surge of 39 per cent in daily sales average to 2,459 barrels of oil equivalent per day in Q3 FY2021. Its net income was US$ 1.5 million in the latest quarter, a decrease of US$ 2.1 million from Q2 FY2021.

Alvopetro paid a quarterly dividend of US$ 0.06 apiece on October 15.

The energy stock swelled by over 26 per cent in the past three months. In the past 12 months, it zoomed by nearly 82 per cent. Its stock closed at C$ 4.36 apiece on December 7, up by almost one per cent.

4.     Sierra Metals Inc (TSX:SMT)

Precious metal and base metal miner Sierra Metals Inc posted revenue from payable metals of US$ 60.7 million and adjusted EBITDA of US$ 17.4 million in the third quarter of fiscal 2021.

The miner paid an annual dividend of US$ 0.03 per share on December 7.

The mineral resource company posted cash and cash equivalents of US$ 58.3 million and working capital of US$ 38.1 million as of September 30, 2021.

Also read: Which Canadian penny stocks would be a smart buy?

SMT stock spiked by roughly one per cent on a week-to-date (WTD) basis. The mining stock closed at C$ 1.78 per share on December 7.

Bottom line

Apart from dividend income, investors should also consider their own risk appetite before investing their money in penny stocks as they are generally volatile.