10 Best Quality Penny Stocks To Buy

7. Mizuho Financial Group, Inc. (NYSE:MFG)

Stock Price as of September 3: $4.23

Number of Hedge Fund Holders: 12

One of the best quality penny stocks, Mizuho Financial Group, Inc. (NYSE:MFG) is a major player in Japan’s financial sector with a wide-ranging offering of services and a strong international presence. Operating through its key subsidiaries, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities, the company delivers comprehensive financial solutions that include traditional banking, securities trading, asset management, and trust services.

In Q2, 12 hedge funds had investments in Mizuho Financial (NYSE:MFG), with positions worth $19.74 million. Alkeon Capital Management is the top investor in the company and has a stake worth $9.5 million, as of June 30.

In the first quarter of the fiscal year, the company reported an 18% increase in profit, largely due to the favorable shift away from negative interest rates. The change has improved profit margins on lending activities. It achieved a net profit of 289 billion JPY (1 Japanese Yen = US$ 0.0069 as of September 3), up from 245 billion JPY in the same quarter the previous year.

The positive performance was driven by an increase in the loan and deposit rate margin, which rose to 0.85% from 0.76% year-over-year.

The company has maintained its forecast for a record full-year profit of 750 billion JPY for the 12 months ending in March 2025. The outlook is supported by the bank’s strong financial foundation and ongoing improvements in its lending margins. The company’s substantial asset base, totaling 292 trillion JPY across its subsidiaries, reflects its financial strength and capacity for continued growth.

Mizuho Financial (NYSE:MFG) is also committed to returning value to shareholders, with a forecasted annual cash dividend per share of 115 JPY for the fiscal year 2024. It represents a 10 JPY increase from the previous year and marks the fourth consecutive year of rising dividends. The dividend growth is possible because of the company’s stable earnings and strong financial performance, which provide an attractive return for investors.