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Highlights
- Dividend-paying penny stocks might rescue a portfolio from a total risk exposure towards market volatility.
- Geneva Finance is anticipating an interim pre-tax profit for the period closed September this year.
- Just Life dividend’s record date and payment date are still awaited from the Company’s end as it was subject to relaxation of Covid related alert level lockdowns.
A dividend-paying penny stock is probably a steal deal for an investor looking to diversify a portfolio.
So, what are these penny stocks that pay a dividend as well?
The companies with low market cap and trading under NZ$1 are known as penny stocks. Dividend-paying penny stocks can rescue a portfolio from a total risk exposure towards market volatility.
Let’s now catch up with 3 NZX-listed penny stocks that pay dividends as well-
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Geneva Finance Limited (NZX:GFL)
Financial services provider to consumer credit markets Geneva Finance Limited has recently declared six months period dividend of 1.25 cents per share, payable by 30 November.
The Company is anticipating an interim pre-tax profit for the period closed September this year. Though, the Company did face an adverse effect of lockdowns it is hoping the unaudited results to be at NZ$3.96 million, reflecting 21% increase on pcp.
On 12 November, Geneva Finance ended the day’s trading session up by 1.28% at NZ$0.79.
Do read; 5 NZX Stocks Buzzing with Annual Reports - CGF, GFL, IKE, NTL, BFG
Vital Limited (NZX:VTL)
Provider of technology and infrastructure throughout New Zealand Vital Limited has the vision to give flawless, most connected, and absolute coverage even in the most distant locales.
In the full-year results ended June this year, released in August, Vital noted an increase in revenue by 5.6% on pcp to NZ$35.24 million and profit after tax standing at NZ$0.841 million, rising by 14.5% on pcp.
The Company’s directors announced a dividend /distribution of 2.0 cps, which was paid to the stakeholders on 15 October this year.
Vital closed the market session flat at NZ$0.53 on 12 November.
Just Life Group Limited (NZX:JLG)
Established three decades ago, Just Life Group Limited offers drinking water and water-related services to private and publicly owned companies.
In August, the Company declared 12-month results for the duration closed 30 June. During the period, the Company noted a 13% increase in net earnings on pcp.
For the 12-month results, the directors of Jut Life Group announced a final dividend distribution of 1.4 cents per share. The record date and payment date are still awaited from the Company’s end as it was subject to relaxation of Covid related alert level lockdowns in NZ (levied at that time).
On 12 November, Just Life Group settled the day at NZ$0.83, rising by 1.22%.
Bottom Line
The low-priced penny stocks are associated with unpredictably and risk. However, a dividend-paying penny stock could give the much-needed impetus towards a good performance.