In this article, we will take a look at the 11 Best Dividend Penny Stocks to Buy Right Now.
Penny stocks are low-priced shares, often trading below $5, that usually belong to smaller companies. They are commonly traded on over-the-counter markets and tend to have lower liquidity and much higher volatility than established stocks. Investors generally view them as high-risk investments because reliable company information and steady trading activity can be limited.
Many investors are drawn to penny stocks because of their growth potential. The low share prices also make them easier to access for people starting with smaller amounts of money. Some investors use them as a small part of a broader portfolio, hoping for higher rewards while accepting the added risk. Their sharp price movements can also attract active traders, though prices can move against investors just as quickly.
According to Saxo Group, the risks tied to penny stocks are serious and often very different from those linked to larger companies. These include high volatility and gap risk, liquidity and execution risk, such as wide bid-offer spreads, and information and disclosure risk that can make fundamental analysis difficult. Company failure, market manipulation, and fraud also appear more often in thinly traded stocks.
Last year, The Wall Street Journal reported that among 2024 penny-stock IPOs with one-year return data available as of September 30, share prices had fallen an average of 37% from their offer prices. The figures came from research by Jay Ritter, who has tracked the IPO market since the late 1970s. For penny-stock IPOs launched between 2001 and 2023, the average three-year decline reached 62%.
Even with that weak long-term performance, the number of penny-stock IPOs, generally defined as stocks priced below $5, has continued to rise.
Given this, we will take a look at some of the best dividend penny stocks.
Photo by Vitaly Taranov on Unsplash
Our Methodology:
For this list, we screened for dividend stocks with a share price below $5, as of the close of May 15. From that list, we picked 11 companies that were most popular among hedge funds, as per Insider Monkey’s database of Q4 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
11. Granite Point Mortgage Trust Inc. (NYSE:GPMT)
Number of Hedge Fund Holders: 13
Share Price as of the Close of May 15: $1.37
On May 12, Keefe Bruyette lowered its price recommendation on Granite Point Mortgage Trust Inc. (NYSE:GPMT) to $1.50 from $1.65. It reiterated a Market Perform rating on the stock.
During the company’s Q1 2026 earnings call, Stephen Alpart, VP, Chief Investment Officer, and Co-Head of Originations, said Granite Point ended the quarter with $1.6 billion in total loan portfolio commitments. The amount included $1.5 billion in outstanding principal balance and nearly $68 million in future funding obligations. Alpart also said the portfolio’s weighted average risk rating increased to 3.2 as of March 31, compared with 2.9 at the end of December. That increase pointed to some added pressure within the portfolio during the quarter.
At the same time, VP, CFO, and Treasurer Blake Johnson said the company reported a GAAP net loss attributable to common stockholders of $6 million, or -$0.13 per basic common share, in the first quarter. He added that Granite Point also posted a distributable loss of $3 million, or -$0.06 per basic common share.
Granite Point Mortgage Trust Inc. is an internally managed real estate finance company that mainly focuses on originating, investing in, and managing senior floating-rate commercial mortgage loans, along with other debt and debt-like commercial real estate investments.
10. CuriosityStream Inc. (NASDAQ:CURI)
Number of Hedge Fund Holders: 17
Share Price as of the Close of May 15: $2.52
On May 15, Barrington analyst Patrick Sholl lowered the firm’s price recommendation on CuriosityStream Inc. (NASDAQ:CURI) to $5 from $5.50. He reiterated an Outperform rating on the shares. In a research note, the analyst said the company’s licensing revenue remains “lumpy,” though the improvement in free cash flow since the dividend was introduced was an encouraging sign.
During the Q1 2026 earnings call, President, CEO, and Director Clint Stinchcomb said the company remained focused on turning CuriosityStream into a business capable of generating $100 million or more in reliable, recurring, and increasingly predictable annualized revenue. Stinchcomb said the company made several deliberate decisions during the first quarter that pressured short-term quarterly revenue. He added that those moves were expected to improve revenue opportunities over the medium and long term.
He also noted that first-quarter revenue reached $15.2 million, reflecting slight year-over-year growth. In addition, Stinchcomb said the company expected to sustain double-digit growth in both revenue and cash flow, driven by continued expansion in subscriptions and licensing. He further stated that the quarterly dividend would increase from $0.05 to $0.085. According to Stinchcomb, the company planned to fund its 2026 dividends through cash generated from operations, similar to its approach in 2024.
CuriosityStream Inc. is a media and entertainment company that provides video and audio programming focused on factual entertainment. Its content spans categories including science, history, society, nature, lifestyle, and technology. The company says its programming is designed to inform, enchant, and inspire viewers.
9. eXp World Holdings, Inc. (NASDAQ:AGNT)
Number of Hedge Fund Holders: 17
Share Price as of the Close of May 15: $4.75
On May 13, DA Davidson lowered the firm’s price recommendation on eXp World Holdings, Inc. (NASDAQ:AGNT) to $10.25 from $11. It reiterated a Buy rating on the shares. The firm said the company delivered solid execution in Q1 despite a weak housing market and an uncertain macro environment. DA Davidson also pointed to a decline in eXp World Holdings’ total agent count compared to Q4. Its checks suggested that the trend has largely continued into Q2.
During the Q1 2026 earnings call, Chief Financial Officer Jesse Hill said stronger agent productivity helped more agents reach their cap during the quarter. That contributed to the gross profit of $75.3 million. Hill also said the company’s operating loss narrowed to $8.8 million in the quarter, improving 15% from the $10.4 million loss reported a year earlier. He added that adjusted EBITDA reached $4.1 million, above the midpoint of the company’s guidance range of $2 million to $5 million.
He further noted that the company increased its cash position by 6% year-over-year, ending the quarter with $122 million in cash on the balance sheet. According to Hill, the North America Realty segment generated $965.1 million in revenue during the first quarter and delivered $10 million in adjusted EBITDA. He also said the international segment remained the company’s fastest-growing business, posting 27% growth in Q1.
Meanwhile, Founder, Chairman, and CEO Glenn Sanford said the company changed its ticker symbol to AGNT recently. He stressed that the move represented more than a cosmetic change.
eXp World Holdings, Inc. is the holding company for eXp Realty and SUCCESS Enterprises. eXp Realty is an independent real estate brokerage with more than 82,000 agents across 29 countries. The company also offers agents commission splits, revenue sharing, equity ownership opportunities, and access to a global network designed to help them grow their businesses.
8. Brandywine Realty Trust (NYSE:BDN)
Number of Hedge Fund Holders: 19
Share Price as of the Close of May 15: $2.99
On April 27, Truist lowered the firm’s price recommendation on Brandywine Realty Trust (NYSE:BDN) to $3 from $3.50. It reiterated a Hold rating on the shares. The analyst said the stock’s discounted valuation appeared justified because of continued pressure on earnings and cash flow. Part of that pressure stems from the expected 2027 expiration of the company’s largest tenant lease, according to the research note.
During the Q1 2026 earnings call, President, CEO, and Trustee Jerry Sweeney discussed the company’s efforts around capital recycling and reducing leverage. He said the portfolio recycling and debt reduction program was progressing on schedule, with nearly $305 million in potential asset sales already under agreement. He also noted that most of those deals were expected to close during the second quarter.
Sweeney pointed to ongoing strength in the Philadelphia leasing market, saying tenants continued to prefer higher-quality properties. He added that Brandywine accounted for 41% of all new leases signed in the market during the period, which reflected the company’s expanding market share. On balance sheet priorities, Sweeney reiterated that lowering leverage and returning to investment-grade metrics remained the company’s primary focus.
At the same time, he said part of the proceeds from asset sales could be directed toward share repurchases. He noted that about $82 million remained available under the current buyback authorization.
Brandywine Realty Trust is a self-managed real estate investment trust (REIT) focused on acquiring, developing, redeveloping, owning, and operating a portfolio of office, life science, residential, and mixed-use properties.
7. Ready Capital Corporation (NYSE:RC)
Number of Hedge Fund Holders: 20
Share Price as of the Close of May 15: $1.73
On May 12, Keefe Bruyette lowered the firm’s price recommendation on Ready Capital Corporation (NYSE:RC) to $1.40 from $1.60. It reiterated an Underperform rating on the shares.
During the Q1 2026 earnings call, Chairman, CEO, and Chief Investment Officer Thomas Capasse said the company continued to move forward with its balance sheet repositioning strategy that began in the fourth quarter of 2025. He noted that the company had generated $1.4 billion in cash so far this year through loan sales and liquidations. According to Capasse, those proceeds helped reduce more than $1.1 billion in warehouse debt and retire another $184 million in corporate debt.
Capasse also discussed the company’s liquidity plans, saying management expected to generate an additional $400 million in liquidity from the sale and runoff of between $2 billion and $2.5 billion in CRE loans and REO assets by the end of the year. He added that, based on current projections, those actions, combined with existing liquidity, were expected to be sufficient to address the company’s remaining 2026 debt maturities and support future cash flow needs.
Meanwhile, CFO and Secretary Andrew Ahlborn said the company reported a GAAP loss from continuing operations of $1.25 per common share during the quarter. He also noted that distributable earnings reflected a loss of $1 per common share, or a loss of $0.33 per share after excluding realized losses related to asset sales.
Ready Capital Corporation is a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market investor and owner-occupied commercial real estate loans.
6. FTAI Infrastructure Inc. (NASDAQ:FIP)
Number of Hedge Fund Holders: 20
Share Price as of the Close of May 15: $1.73
FTAI Infrastructure Inc. (NASDAQ:FIP) reported its Q1 2026 earnings on May 7. During the earnings call, CEO and President Kenneth Nicholson discussed the planned sale of Long Ridge, stating that FTAI had reached an agreement to sell the asset to MARA Holdings for $1.52 billion. He said the transaction was expected to close in the third quarter of 2026, pending regulatory approvals, with no other significant conditions remaining. Nicholson also noted that the existing debt tied to Long Ridge would either be repaid or taken over by the buyer, which should leave FTAI with more than $300 million in net proceeds.
According to Nicholson, the sale aligns with two major company goals: lowering leverage and sharpening the focus on the core freight rail business. He added that management expects 2026 to be a busy year for the railroad segment and said the company is currently evaluating several rail-related opportunities.
On the balance sheet, Nicholson said FTAI plans to reduce parent-level debt by at least $300 million while cutting annual parent-level interest expense by roughly $30 million. He noted that those moves should strengthen the company’s leverage profile. Nicholson also expressed confidence in the company’s Jefferson and Repauno terminal assets. He said management remains focused on improving earnings at both facilities before eventually pursuing monetization opportunities. He also pointed to improved financial performance during the quarter, with adjusted EBITDA rising to $70.6 million from $35.2 million in the first quarter of 2025.
Nicholson added that results were affected by a 25-day outage at Long Ridge, which weighed on both revenue and EBITDA during the quarter. He said consolidated Q1 EBITDA would have topped $80 million without the outage impact.
FTAI Infrastructure Inc. develops, acquires, and operates infrastructure assets that support customers in the transportation, energy, and industrial sectors.
5. Cricut, Inc. (NASDAQ:CRCT)
Number of Hedge Fund Holders: 21
Share Price as of the Close of May 15: $3.93
On May 7, Goldman Sachs raised the firm’s price recommendation on Cricut, Inc. (NASDAQ:CRCT) to $3.75 from $3.25. It reiterated a Sell rating on the shares.
During the Q1 2026 earnings call, CEO, President, and Director Ashish Arora said the company continued to face pressure on its overall performance, even though several operating metrics improved during the quarter. He noted that profitability, platform revenue, and global machine sell-out units all moved higher in Q1. Still, those gains were not enough to return the company to overall sales growth, as revenue declined by less than 2% year over year during the quarter.
Arora also discussed several recent product launches and the rollout of a new service offering. He said the company introduced two new cutting machines, Joy 2 and Explore 5, along with the next generation of its handheld heat presses, EasyPress SE. In addition, he noted that Cricut launched its direct-to-film service, marking the company’s first service-based offering.
Meanwhile, Chief Financial Officer Kimball Shill said first-quarter revenue totaled $159.5 million, down 2% from the same period last year. He added that the company generated $20.3 million in net income during the quarter, which represented 12.7% of total sales.
Cricut, Inc. is a creative technology company that has built an ecosystem of connected cutting machines, accessories, and materials designed to work together seamlessly. The company uses that platform to introduce new products while continuing to update its existing physical and digital offerings.
4. Gray Media, Inc. (NYSE:GTN)
Number of Hedge Fund Holders: 21
Share Price as of the Close of May 15: $4.15
On May 15, Guggenheim analyst Curry Baker lowered the firm’s price recommendation on Gray Media, Inc. (NYSE:GTN) to $7 from $8. The analyst reiterated a Buy rating on the shares. The firm updated its model following the company’s Q1 results and guidance.
During the Q1 2026 earnings call, Executive Chairman and CEO Howell said the company had recently completed the acquisition of television stations in 10 markets from Allen Media Group, along with stations in three markets from Block Communications. He added that the remaining transactions involving E.W. Scripps and Sagamore Hill were expected to close within the next few weeks.
President, Co-CEO, and Director Patrick LaPlatney said the company had begun seeing some softness in core advertising trends heading into the second quarter. He noted that tensions in the Middle East and swings in oil prices were influencing advertiser behavior. According to LaPlatney, some clients were delaying spending commitments, which reduced visibility into near-term advertising demand.
Meanwhile, Executive Vice President and CFO Jeff Gignac said net retransmission revenue declined by $4 million in the first quarter of 2026 compared with the same period a year earlier. Despite the decline, he said the company still expected full-year 2026 net retransmission revenue growth to remain in the low single-digit range, broadly in line with the pace recorded during the first quarter.
Gray Media, Inc. is a multimedia company that owns local television stations and digital assets serving roughly 120 full-power television markets across the United States.
3. Ardagh Metal Packaging S.A. (NYSE:AMBP)
Number of Hedge Fund Holders: 27
Share Price as of the Close of May 15: $3.95
On April 24, Citi analyst Anthony Pettinari lowered the firm’s price recommendation on Ardagh Metal Packaging S.A. (NYSE:AMBP) to $5 from $6. The analyst reiterated a Buy rating on the shares.
The same day, BofA analyst George Staphos raised the firm’s price goal on Ardagh to $4 from $3.70. He kept an Underperform rating on the stock following the company’s Q1 results and reaffirmed guidance. The analyst said BofA increased its EPS forecasts to $0.25 from $0.22 for 2026 and to $0.31 from $0.29 for 2027. The revisions reflected stronger-than-expected Q1 execution, improved margins in Europe, and what the firm described as a degree of conservatism in expectations.
Oliver Graham, CEO of Ardagh Metal Packaging, said the company delivered strong first-quarter results, with adjusted EBITDA increasing 15% from the prior-year period and finishing well above guidance. He said the results highlighted the resilience of the business despite operating in a difficult environment. Graham noted that beverage can sales volumes declined 1% year over year, which he said aligned with the company’s expectations. According to him, the decline partly reflected tough comparisons against the prior-year quarter, when shipments had increased 6%, as well as the effect of contract resets in North America.
He also said the company was maintaining its full-year 2026 adjusted EBITDA guidance despite continued macroeconomic and geopolitical uncertainty, along with higher commodity-related input costs. Graham added that AMP still expected moderate growth in global shipments. He said the company’s outlook was supported by stronger-than-expected first-quarter performance, contractual cost pass-through mechanisms, energy hedging arrangements, and expected shipment growth, which were all anticipated to help offset rising commodity prices.
Ardagh Metal Packaging S.A. is a Luxembourg-based company that supplies metal beverage cans to consumer brands. The company focuses on infinitely recyclable metal packaging solutions for beverage producers.
2. Newell Brands Inc. (NASDAQ:NWL)
Number of Hedge Fund Holders: 40
Share Price as of the Close of May 15: $3.84
On May 4, Deutsche Bank analyst Steve Powers raised the firm’s price recommendation on Newell Brands Inc. (NASDAQ:NWL) to $4 from $3. The analyst reiterated a Hold rating on the shares.
During the Q1 2026 earnings call, President, CEO, and Director Christopher Peterson said all three of the company’s business segments delivered core sales growth above expectations. He also noted that the Learning & Development segment returned to core sales growth during the quarter.
Peterson attributed the stronger performance to improving consumer demand and the company’s execution strategy. He said point-of-sale trends and market share gains came in ahead of expectations, which he linked to Newell’s focus on innovation along with increased advertising and promotional spending. He also pointed out that six of the company’s top 10 brands gained market share in the first quarter.
Meanwhile, Chief Financial Officer Mark Erceg said normalized gross margin expanded by 70 basis points year over year to 33.2% during the first quarter. He added that Newell’s normalized operating margin reached 4.8% during the period. Erceg also said the company generated roughly $25 million in net pricing benefits, which he attributed to improved claims experience and stronger deduction management.
Newell Brands Inc. is a global consumer goods company operating through three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation.
1. UWM Holdings Corporation (NYSE:UWMC)
Number of Hedge Fund Holders: 46
Share Price as of the Close of May 15: $3.00
On May 8, Keefe Bruyette analyst Bose George lowered the firm’s price recommendation on UWM Holdings Corporation (NYSE:UWMC) to $4.50 from $5. The analyst reiterated a Market Perform rating on the shares.
During the Q1 2026 earnings call, Chairman, President, and CEO Mat Ishbia discussed the company’s efforts to bring loan servicing operations in-house. He said the transition was moving along very well, noting that fewer than 100,000 loans remained on the existing platform. According to Ishbia, all new loan originations were already being added to the company’s in-house servicing platform, and UWM had also transferred a large number of loans from Cenlar.
Ishbia added that the company expected to complete the transition by the end of 2026, with all loans eventually serviced internally and no subservicers remaining. He said the initiative involved partnerships with Black Knight and Bilt, along with systems developed internally by the company. Discussing profitability trends, Ishbia said gain-on-sale margins were currently within what he viewed as the appropriate range and expected them to stay around similar levels during the second quarter.
He also described the mortgage market as highly competitive and said broader uncertainty continued to weigh on the operating environment.
UWM Holdings Corporation, through its subsidiaries, originates, sells, and services residential mortgage loans across the United States. The company primarily originates conforming and government loans in all 50 states and the District of Columbia.
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