Best Dividend-Paying Penny Stocks in India

23 September 2022

Due to their low price, Penny Stocks are frequently used by new traders to gain trading experience. In addition, due to the low cost of these stocks, trading Penny Stocks is risk-free.

Because they have the potential for enormous gains, Penny Stocks are pretty popular among small investors. Even though Penny Stocks are frequently very speculative, traders can use them to make investments that will yield good returns.

You should be aware, however, that not all investors may be suited for these kinds of investments due to their generally low liquidity.

The large percentage of Penny Stocks may not offer sufficient investment returns to make the transaction beneficial due to sharing price growth. As a result, a sizable portion of Penny Stock traders loses money. On the other hand, Penny Stocks that pay dividends may contribute to a Penny Stock portfolio's overall return being higher.

Read on to learn more about the best Dividend Paying Penny Stocks in India that we have listed in this blog.

Highest Dividend-Paying Penny Stocks in India

 S.No.

Top Dividend Paying Penny Stocks

1.

Steel City Securities

2.

TCFC Finance

3.

Satluj Jal Vidyut Nigam (SJVN)

4.

Choksi Imaging

5.

Rail Vikas Nigam

6.

Gothi Plascon

Factors to Consider Before Investing in The High Dividend-Paying Penny Stocks

Because Penny Stocks have such high volatility, investing in them can be very profitable. However, a Penny Stock investor must exercise caution when making such investments by considering the following factors-

  • The riskiest investments in India are Penny Stocks. They are speculative and can result in more significant gains or losses. Therefore, it is recommended that you begin small and steadily increase your incentive to invest as you go along if you are interested in Penny Stocks.

  • You are advised against using the buy-and-hold strategy when investing in Penny Stocks. Instead, try investing in them for brief periods and waiting for them to mature before reinvesting. Your risk levels will significantly drop as a result.

  • Compared to other investments like Mutual Funds or Equity Shares, Penny Stocks in India offer investors above-average returns on their money. However, to earn more money with less risk, it is advised that you only invest in them if you have high hopes for their future performance. 

Penny Stock investing is a brilliant idea for quick profits, but it shouldn't be your long-term plan. Since Penny Stocks are frequently volatile, you might find that your investment has lost some of its value after a few months or years.

Additionally, they are vulnerable to abrupt value drops caused by changes in the stock market or new initiatives within the companies involved.

Top Dividend-Paying Penny Stocks in India: Overview

Here is a breakdown of the leading Dividend-Paying Penny Stocks in India-

1) Steel City Securities

Steel City Securities Limited is a retail stockbroker based in India. The Company's primary business is that of a stockbroker, trading securities on various stock exchanges and acting as a depository participant (P).

Its business portfolio is diverse, including capital market services, e-governance services, investment advisory in the form of mutual funds, bonds, credit cards, initial public offering (IPO), corporate fixed deposits, currency trading, commodity broking, insurance distribution, and non-banking financial Company (NBFC) services.

2) TCFC Finance

CFC Finance Limited is a non-banking financial institution. The Company was in the finance and investment business, trading in equity shares, mutual funds, securities, and other assets.

The Company also makes investments in equity, debt, mutual funds, and real estate, among other things. It is a non-banking financial company that also engages in other investment activities. The Company trades equity securities in both the cash and futures markets, and it also actively participates in the Company’s initial public offerings. The Company also invests in various types of mutual funds.

3) Satluj Jal Vidyut Nigam (SJVN)

SJVN Limited is an Indian company primarily engaged in the generation of electricity. It is also in the business of providing consulting services. It operates in the power generation and sale segment. Thermal power, hydropower, wind power, solar power, power transmission, consultancy, and power trading are among its businesses.

It operates power projects in India's Himachal Pradesh, Uttarakhand, Bihar, Maharashtra, Uttar Pradesh, Punjab, Gujarat, and Arunachal Pradesh, as well as neighbouring Nepal and Bhutan. SJVN Thermal Private Limited and SJVN Arun-3 Power Development Company Private Limited are among its subsidiaries.

4) Choksi Imaging

Choksi Imaging Limited is an India-based company that primarily deals in manufacturing x-ray films and trading speciality x-ray films and medical equipment.

The Company's products include medical consumables, equipment, ultrasound and colour doppler, x-ray film and chemicals, x-ray accessories, and non-destructive testing (NDT). The Company serves the needs of the petrochemical, aerospace, nuclear, and other industrial sectors.

5) Rail Vikas Nigam

Rail Vikas Nigam Limited (RVNL) is a particular purpose vehicle (SPV) that develops projects. RVNL is focused on mobilizing financial resources and implementing projects related to Golden Quadrilateral reinforcement.

RVNL completes all railway projects, including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, cable-stayed bridge construction, and institutional buildings.

6) Gothi Plascon

The Company was founded in 1994, just as the economy was beginning to improve, and the founder chairman, who had over two decades of experience in the plastics industry, went public to establish one of the best production lines in the country.

Ahead of its time, market/government policies did not favour the project, and after keeping it going for over a decade, steered the Company into a real estate development company and from a loss-making venture to a profitable one with grit and determination.

Today, it is known as a high-quality developer that only caters to MNCs for leasing the property.

You may also want to know the Best Penny Stocks to Buy in India 2022

Conclusion

In India, Penny Stocks are a long-term investment that aims to provide the lowest risk and highest return for any investor. Penny Stocks are low-cost shares issued by corporations. Investors are appealed by penny stocks paying dividends in India because their prices are less volatile.

Investing in Penny Stocks is subject to market risks; investors should be cautious because markets have risen sharply. Therefore, before making any investment decision, conduct fundamental research.

To read the RA disclaimer, please click here
Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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