12 Best Dividend Penny Stocks to Buy According to Hedge Funds

5. Nokia Oyj (NYSE:NOK)

Stock Price: $4.94

Number of hedge fund holders: 16

Spearheading telecommunication for a loyal customer base, Nokia Oyj (NYSE:NOK), presents itself as a reliable penny stock option for steady income. With a strong legacy as a global leader in mobile and fixed network solutions, it has solid standing in segments such as Network Infrastructure and Mobile Networks. Nokia is well known for its technological contributions to the telecom industry, especially in the development of GSM, 3G, and LTE standards.

Nokia Oyj (NYSE:NOK) has demonstrated strong financials in Q4 2024 by reporting a profit of €813 million, a strong turnaround from a €33 million loss in the same period the previous year. The company saw an impressive 85% surge in the Nokia Technologies unit, driven by several new deals. While the Mobile Networks segment saw a 2% decline in net sales, it showed signs of stabilization with an 18% sales increase in North America.

Fueled by the strong fourth-quarter performance, the stocks have seen a recent surge by an impressive 7.8% surge, marking its best session in months.

While the telecom industry has always been driven by dynamic tech shifts, more recently there is a growing demand for advanced network solutions. Achieving the milestone of 7,000 patent families declared essential to 5G, Nokia Oyj (NYSE:NOK) is in a strong position to become a strong global player in next-generation technologies.

With a strong forecast for operating profit between €1.9 billion and €2.4 billion for 2025, the company consistently displays confidence in financial performance. At the same time, a proposed dividend of €0.14 per share shows commitment to returning value to its shareholders.

With a strong dividend yield and a unique position in the tech market, coupled with strong backing from institutional shareholders, Nokia Oyj (NYSE:NOK) qualifies as an attractive dividend penny stock. This positive stock momentum reflects investor confidence in Nokia’s strategic direction and financial health.