This article looks at the 12 best dividend penny stocks to buy according to hedge funds.
For investors who look for potential for quick gains at a low investment price point, penny stocks can be an attractive but risky stock investment option. Stocks that typically trade under $5 fall under this category, but they can go as low as $1 in some cases. While many of these stocks are a red flag for high volatility, dividend penny stocks offer some security to investors as they balance the risk with some stability and income. They provide the added benefit of a regular income. Investors with high-risk tolerance often seek these stocks to enter high-potential markets. For those seeking to grow their portfolios without taking great levels of risk, dividend-paying penny stocks can be an interesting opportunity.
Often when prices spike in the market, the low-priced shares offer the opportunity to make attractive gains as they allow investors to hold a large number of shares for a small amount of capital. However, these shares also belong to companies that are often under-the-radar with the risk of prices sometimes even falling to zero. They are often considered stocks lacking liquidity and are highly speculative due to small market capitalization. Given their speculative nature, it is recommended to conduct thorough research before investing in penny stocks.
Unlike blue-chip companies trading on major stock exchanges, many penny stocks trade over-the-counter (OTC) or through Pink Sheets where listing requirements are more relaxed. With low levels of information available, these stocks are also susceptible to pump-and-dump schemes. Even though dividend penny stocks pay out dividends, they are not entirely free of the inherent risks and may wind up cutting dividends as a first line of defense when the market goes awry. The majority of these companies are either in their early growth stage or are companies facing financial difficulties. Many of these companies fail to perform or go bankrupt, leading to substantial losses for investors.
Investing in dividend penny stocks also requires a thorough understanding of financials and carefully selecting a portfolio. Investors should look out for a history of regular dividends and a reasonable dividend yield.
In a broader market context, penny stocks tend to underperform large-cap in the longer term due to their inherent financial risks and instability. Less than 10% of penny stocks graduate to higher stock data, while some end up getting delisted. However, there are instances of penny stocks performing outstandingly and transitioning into mid-cap and even large-cap stocks. While over 90% of OTC penny stocks underperform over five years, it was noted that small-cap stocks that pay dividends out-perform their non-dividend paying counterparts by over 2-3% annually. This might not seem significant, but these figures provide some context in a highly speculative market with less transparency.
While typically penny stocks are avoided by hedge funds due to their limited stability and scalability, some funds specializing in small-cap or high-risk investments do engage with these stocks. In instances where hedge funds identify undervalued penny stocks with strong growth potential, they may accumulate significant positions and sometimes influence stock price movements.
The number of penny stocks trading on American Stock Exchanges has seen unusual spikes in recent years and has significantly risen by 72% in 2023 alone; this has prompted market regulators to introduce stricter listing rules to protect investors.
Recent analyses have identified several penny stocks demonstrating bullish technical patterns and have shown promising trends, with breakouts above key resistance levels. As hedge fund involvement in a penny stock may indicate that the company has strong growth potential, undervalued assets, or an upcoming catalyst that could drive its stock price higher, investing in the best dividend stocks according to hedge funds can be one way to vette stocks within a highly fluctuating market. Given this, we will take a look at some of the best penny stocks that pay dividends.
A money manager reviewing quantitative and fundamental analysis before investing in a public company.
Our Methodology:
To come up with our list of best dividend penny stocks to buy according to hedge funds, we screened for stocks that have a share price of $5 or below, with 5% or above dividend yields. From this list, we picked 12 dividend penny stocks with the highest number of hedge funds using Insider Monkey’s proprietary database of hedge funds and their holdings, as of Q3 2024. While these stocks pay dividends, their dividend policies may be inconsistent or vary significantly considering their high volatility and risk nature.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
12. Enel Chile S.A. (NYSE:ENIC)
Stock Price: $3.38
Number of hedge fund holders: 9
Enel Chile S.A. (NYSE:ENIC) is a leading player in Chile’s energy sector, specializing in the generation, transmission, and distribution of electric energy. As a subsidiary of the multinational Enel Group, the company operates a diversified energy portfolio that includes hydroelectric, solar, wind, thermal, and geothermal power plants.
The Board of Directors of Enel Chile S.A. (NYSE:ENIC) has declared an interim dividend for the 2024 fiscal period, representing 15% of the net income as of September 30, 2024. This interim dividend underscores the company’s commitment to delivering consistent shareholder value. Financially, the company has struggled with revenues decreasing 11.63% from the previous year leading to a net income reduction of 49.41%. Extreme weather conditions in the Chile region have also contributed to significant financial disruptions for the company by affecting infrastructure and operations. To future-proof its operations against climate-related disruptions, Enel Chile has expressed intentions to invest in grid resilience.
A strong commitment to counter economic and climate challenges projects a positive outlook for Enel Chile S.A. (NYSE:ENIC) increasing investor interest. This is coupled with an attractive dividend yield offered by the company. The company’s forward dividend yield stands at 6.46%, with an annual dividend of $0.22 per share. Notably, over the past three years, the company has achieved an impressive annualized dividend growth rate of 143.29%. This robust dividend performance has garnered attention from hedge funds and institutional investors seeking reliable income streams from penny stocks. The global shift towards sustainable energy solutions presents it with opportunities to expand its renewable energy footprint, aligning with both national and international energy transition goals. The company’s entry into sustainable offerings also presents an appealing opportunity for investors to tap into the growing industry. As a market leader, Enel Chile S.A. (NYSE:ENIC) is in a good position to navigate the evolving energy landscape effectively, ensuring long-term value creation for its shareholders.
11. Lloyds Banking Group plc (NYSE:LYG)
Stock Price: $3.37
Number of hedge fund holders: 10
Lloyds Banking Group plc (NYSE:LYG) is a UK-based financial services organization, offering a comprehensive range of banking and financial products primarily to retail and commercial customers. The bank operates through three main segments: Retail, Commercial Banking, Insurance, Pensions, and Investments. The bank is also the UK’s largest mortgage provider, playing a crucial role in the housing finance sector with over £300 billion of mortgage booked. The stock surged by nearly 48% in the past 12 months, LYG is one of the best penny stocks that pay dividends.
As the UK financial has been experiencing increased regulatory scrutiny in a bid to protect investor interests and banking customers, more banks are being faced with regulatory fines. Lloyds Banking Group plc (NYSE:LYG) has recently faced challenges due to a regulatory probe into its motor finance operations, due to which the bank has channelized additional capital to provisions, affecting the annual pre-tax profits. There was a 20% decline to £5.97 billion in annual pre-tax profits, however, the company reported a solid underlying performance, with net income slightly surpassing expectations at £4.38 billion for the fourth quarter. The bank has recently announced a £1.7 billion share buyback program, underscoring its commitment to returning capital to shareholders.
For dividend-focused investors, Lloyds Banking Group plc (NYSE:LYG) is a compelling opportunity, as the bank’s dividend yield remains above the FTSE average of 3.6%. The forecasts indicate a continued growth in shareholder returns.
For its future plan, the bank is increasingly investing in modernization efforts. It has earmarked a £4 billion plan aimed at technological advancements and expanding into more stable markets such as wealth management. The strategic moves will help diversify revenue streams and strengthen the bank’s market position. Overall, Lloyds Banking Group plc (NYSE:LYG) presents a lucrative opportunity for dividend-seeking investors as a leading market player in the UK financial sector.
10. Orion Office REIT Inc. (NYSE:ONL)
Stock Price: $4.12
Number of hedge fund holders: 14
Orion Office REIT Inc. (NYSE:ONL) is an internally managed real estate investment trust. The company specializes in the ownership, acquisition, and management of a diversified portfolio of mission-critical and corporate headquarters office buildings. With a focus on high-quality suburban markets across the United States, the company leases primarily to single tenants on a net lease basis. The company’s portfolio comprises 76 properties, with approximately 74.4% of annual base rent derived from investment-grade credit-rated tenants. ONL is one of the best penny stocks on our list.
Orion Office REIT Inc. (NYSE:ONL) reported significant leasing activity in the Q3 of 2024, completing 832,000 square feet year-to-date, with 254,000 square feet completed during the quarter. The company expanded its strategic market presence by acquiring a 97,000-square-foot property in San Ramon, California, for $34.6 million. Despite the strategic moves, the company faced a challenging financial environment with revenue declining to $39.2 million from $49.1 million year-over-year, and Core Funds From Operations (FFO) decreasing to $12.0 million ($0.21 per share) from $24.1 million ($0.43 per share) in the same period.
Orion Office REIT Inc. (NYSE:ONL) maintains a strong dividend yield, appealing to income-focused investors. The forward dividend yield stands at approximately 9.93% as of February 21st, 2025. The company’s payout ratio is a conservative 40%, indicating that dividends are well-covered by earnings.
The office REIT sector is facing financial headwinds due to evolving workplace dynamics and economic uncertainties. To navigate these industry challenges, Orion Office REIT Inc. (NYSE:ONL) has shifted its strategic focus to suburban markets and investment-grade tenant positions. Recently the company has secured a long-term lease renewal with GE Vernova indicating its capabilities to acquire high-quality tenants and enhance portfolio stability.
Overall, Orion Office REIT Inc. (NYSE:ONL) offers a good opportunity for investors to tap into the attractive office REIT market with a steady share in the rent income. The company has also proved its resilience over time by acquiring creditworthy tenants in suburban locations and undertaking proactive leasing strategies against the changing office space demands.
9. Gerdau S.A. (NYSE:GGB)
Stock Price: $2.89
Number of hedge fund holders: 14
As one of the largest steelmakers in the world and recognized as the largest producer of long steel in the Americas, Gerdau S.A. (NYSE:GGB) has operations in over 10 countries. The company serves diverse markets in multiple sectors like construction, industrial, and agricultural. It is also recognized for its focus on sustainability and recycling scrap constituting 73% of its steel production. GGB is among the best penny stocks that pay dividends.
The global structural steel industry has seen a significant increase in demand recently, driven by the rise in infrastructure developments. The industry is projected to reach a market size of $143 billion by 2025. This growth positions Gerdau S.A. (NYSE:GGB) favorably to increase its profitability. In Q4, 2024, the company reported a net income of 3 cents per share, with adjusted earnings reaching 6 cents per share. Together with the strong performance and plans for expansion, the company presents a strong outlook for the coming years.
From an investment point of view, Gerdau’s stock offers a compelling investment for dividend-focused investors. A forward annual dividend yield of 4.71%, reflects its commitment to delivering consistent shareholder returns.
Stepping into 2025, Gerdau S.A. (NYSE:GGB) has outlined plans to strengthen its position in key markets and explore new growth opportunities, while continuing to demonstrate operational efficiency. In an evolving global steel scenario, the company’s strategic initiatives and focus on creating a diversified portfolio position it well to capitalize on emerging opportunities. While the industry has been posed with significant challenges by way of fluctuating raw material prices and increased competition, the company has proved to be resilient through a strong financial performance. This proves that it is well prepared to tackle future industrial challenges through technological advancements, a strong market presence, and robust financials.
Considering these factors, Gerdau S.A. (NYSE:GGB) offers an interesting opportunity to investors seeking exposure to dividend-paying stocks in the industrial sector.
8. Banco Santander, S.A. (NYSE:SAN)
Stock Price: $6.03
Number of hedge fund holders: 15
Banco Santander, S.A. (NYSE:SAN) is one of the best bank penny stocks to buy according to hedge funds. Spain’s largest banking group offers a comprehensive range of services, including retail banking, corporate and investment banking, wealth management, insurance, and digital payment solutions. Banco Santander has solidified its position as a leading multinational financial institution with a significant presence across Europe, Latin America, North America, and Asia.
In 2024, Banco Santander, S.A. (NYSE:SAN) reported a record net profit of €12.57 billion. This marks the third consecutive year of record earnings for the bank. This strong financial performance was driven by higher net interest and fee incomes, as the bank successfully capitalized on favorable market conditions. In response to its strong capital generation, the company announced a €10 billion share buyback program.
In February 2025, Banco Santander, S.A. (NYSE:SAN) launched its fully digital subsidiary, Openbank, in Mexico. This marks a significant step toward expanding its digital presence. In a broader strategy context, this is a step forward towards tapping into the growing Latin American market, as the bank plans to invest approximately $2.1 billion over the next three years to enhance technology and digital offerings in the region.
In a complex banking landscape, the rising interest rates, pose both opportunities and challenges for major players. The higher rates have bolstered net interest margins for banks, however, the economic uncertainties and potential recessions continue to pose risks to profitability. Investors are strongly advised to consider factors such as market share, economic conditions, and management quality when evaluating bank stocks due to the fluctuating markets. However, Banco Santander, S.A. (NYSE:SAN) has managed to win strong accolades recently also being listed as the highest-ranked European bank among Fortune’s 2025 World’s Most Admired Companies. The bank has been recognized by analysts for its strong market position and growth prospects.
In a nutshell, Banco Santander, S.A. (NYSE:SAN) presents a strong global presence to navigate the ever-fluctuating financial landscape. For investors seeking dividend-paying stocks with growth potential, the company presents a compelling opportunity, supported by its strong financial performance, a focus on enhancing shareholder value, and positive analyst endorsements.
7. B2Gold Corp. (NYSE:BTG)
Stock Price: $2.83
Number of hedge fund holders: 15
Canadian mining company, B2Gold Corp. (NYSE:BTG), specializes in gold production with active mines in Mali, Namibia, and the Philippines. The company has rapidly expanded its portfolio through strategic mergers and acquisitions and established itself as a mid-tier gold producer in the global mining industry. The stock has surged by over 15% in the past 12 months, which makes it one of the best penny stocks on our list.
In Q4 2024, B2Gold Corp. (NYSE:BTG) showcased an optimistic production outlook, despite facing operational challenges. The company was able to keep up its operational resilience by meeting its gold production and revenue targets. The company also declared a dividend of $0.04 per share. Recently, it has announced an amended shareholder return strategy, launching a new dividend framework and expressing intentions to implement a normal course issuer bid. The strategic move is aimed at enhancing shareholder value and demonstrates the company’s confidence in its financial position.
The gold mining sector has seen some interesting developments and players focusing on optimizing operations and expanding their asset portfolios. B2Gold Corp. (NYSE:BTG) has also followed suit by increasing its investment in Founders Metals, indicating a strategic interest in diversifying and strengthening its asset base.
B2Gold Corp. (NYSE:BTG) has forecasted a promising production outlook for 2025, estimating between 970,000 to 1,075,000 ounces of gold. While the gold mining industry continues to operate dynamically, the company’s focus on operational efficiency, strategic growth, and robust financial management positions it well to navigate challenges and create a competitive edge.
The future outlook looks positive as stock prices reflect a positive trend in the current trading session. The company’s dividend yield stands at 6.04%, considerably higher than the industry average of 1.70%. With a view of its strong commitment to building shareholder value, B2Gold Corp. (NYSE:BTG) has garnered continuous interest from institutional shareholders.
6. Service Properties Trust (NASDAQ:SVC)
Stock Price: $2.69
Number of hedge fund holders: 16
Service Properties Trust (NASDAQ:SVC), is a real estate investment trust (REIT) primarily investing in hotel and service-oriented retail properties across the United States. With a portfolio of over 300 hotels and more than 800 retail properties, it is a significant player in the hospitality and retail real estate sectors. The company has created a focus on acquiring and managing properties that generate consistent cash flows, catering to both business and leisure travelers, as well as consumers seeking essential services.
In recent developments, Service Properties Trust (NASDAQ:SVC), has been making strategic moves to ensure liquidity in a volatile market. This includes a reduction of its quarterly dividend to $0.01 per share, in a bid to conserve approximately $127 million annually to bolster liquidity. This can be seen as a proactive strategy to counter economic uncertainties. The company has, however, displayed a continuous focus on shareholder value even in an unfavorable market. In January 2025, the company declared a regular quarterly cash distribution on its common shares.
In recent times, changing consumer patterns have caused frequent fluctuations in the hospitality retail industry. For REITs like Service Properties Trust (NASDAQ:SVC), this has meant remaining flexible and having agile strategies to navigate the changes. The company’s recent dividend adjustment and liquidity enhancement measures are indicative of broader trends within the industry, where companies are prioritizing financial flexibility to navigate market volatility.
Service Properties Trust (NASDAQ:SVC) has shown notable interest from hedge funds seeking income-generating assets as a dividend-paying option among penny stocks. Even at adjusted levels, the company’s decision to pay consistent dividends assures investors looking for exposure to the real estate sector with potential for dividend income.
The prospects of Service Properties Trust (NASDAQ:SVC) are strongly dependent on its ability to adapt to economic environments. Overall, its focus on essential service properties indicates attractive gains for shareholders, tapping into a sector with steady demands.
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.
4. Ambev S.A. (NYSE:ABEV)
Stock Price: $1.92
Number of hedge fund holders: 19
Brazilian beverage company, Ambev S.A. (NYSE:ABEV) is one of the largest brewers globally. The company’s diverse product portfolio includes popular beer brands such as Antarctica, Bogotá Beer Company, Brahma, Bohemia, and Stella Artois. It holds a dominant position in the beverage industry, controlling approximately 69% of the Brazilian beer market, and also a significant presence across Latin America and Canada.
More recently, Ambev S.A. (NYSE:ABEV) has been striving to achieve an optimized capital structure indicating intentions to strengthen financial health. In January 2025, the company actively repurchased common shares through Santander Corretora. The company also has reelected its Board of Executive Officers in a bid to streamline strategy and maintain continuity in the company’s management.
The beverage industry has been driven by both consumer preferences and dynamic economic conditions. Despite a slight dip in sales, Ambev S.A. (NYSE:ABEV) has managed to deliver a net profit increase in Q3 2024, favored by lower costs and favorable foreign exchange rates. The company has successfully demonstrated a stable market presence and sustained investor interest.
From an investment perspective, Ambev S.A. (NYSE:ABEV), presents a compelling opportunity as a penny stock. It has received continuous interest from the investment community, with 8.13% of the company stocks being held by institutional investors and hedge fund owners. With recent dividend payouts at $0.105 for 2024, the company offers a dividend yield of 5.8%. Trading at record-low valuation multiples, it maintains a significant net cash position and high capital returns, making it an attractive option for dividend-focused investors.
Overall, a strategic outlook with leadership restructuring and share repurchases sets up Ambev S.A. (NYSE:ABEV) for potential growth and favorable shareholder value. It prepares Ambev to adapt to market trends and consumer preferences effectively. Investors seeking dividend income may find Ambev’s consistent payouts and strong market positioning particularly appealing, which makes it one of the best penny stocks.
3. Banco Bradesco S.A. (NYSE:BBD)
Stock Price: $2.09
Number of hedge fund holders: 22
Banco Bradesco S.A. (NYSE:BBD) is one of Brazil’s leading financial institutions, offering a comprehensive range of banking and financial services. The bank has a presence both domestically and internationally and caters to individuals, corporations, and businesses offering a comprehensive suite of banking and financial services.
In its 2025 growth projections, Banco Bradesco S.A. (NYSE:BBD) has anticipated a 4% to 8% expansion in its loan portfolio. Additionally, operating expenses are projected to increase by 5% to 9%. The projections suggest a strategic approach to navigating the current economic landscape and channeling investments toward technology and infrastructure for operational efficiency.
Banco Bradesco S.A. (NYSE:BBD) has a dividend payout ratio that stands at 9.8%, indicating that its dividends are well-supported by earnings. Analysts projections predict earnings of $0.40 per share in the upcoming year, which would allow it to comfortably cover its annual dividend of $0.04. With this, the expected future payout ratio is expected to hit an impressive 10.0%. The strong payout ratio suggests a sustainable dividend policy, providing a steady income stream for shareholders.
Amidst a phase of cautious optimism, the banking industry is experiencing more players opting for sustained growth strategies. Banco Bradesco S.A. (NYSE:BBD) projects an outlook for a measured risk appetite and balancing growth ambitions, as it expects a 9% to 10% growth in its portfolio. The cautious but strategic approach shows the bank’s adaptability to economic headwinds.
The strategic approach and growth projections suggest a positive trajectory for Banco Bradesco S.A. (NYSE:BBD) in the future. Together with sustained dividends and growth potential, the stock might be appealing to investors seeking to invest in emerging market financial institutions.
2. Berry Corporation (NASDAQ:BRY)
Stock Price: $4.27
Number of hedge fund holders: 22
Independent upstream energy company, Berry Corporation (NASDAQ:BRY) engages in the development and production of conventional oil reserves in the western United States, with a significant focus on California. The company operates through two main segments: Exploration and Production (E&P), focusing on onshore oil and gas reserves, and Well Servicing and Abandonment, providing essential services to the energy sector.
Berry Corporation (NASDAQ:BRY) has undertaken significant financial restructuring to enhance its liquidity and extend debt maturities. The company has successfully completed a comprehensive refinancing of its existing indebtedness in 2024, securing a $450 million Term Loan Credit Agreement and a $500 million revolving loan facility. The strategic move bolstered the company’s financial flexibility, providing over $100 million in liquidity at closing.
The energy sector has increasingly been under scrutiny by regulators, fueling market uncertainties. The sector has seen increased fluctuations in commodity pricing, making it difficult for market players to navigate in an uncertain environment. Despite the challenges, Berry Corporation (NASDAQ:BRY) has had a focus on low-geologic-risk, long-lived conventional oil assets, which has allowed it to be resilient. The focus on conventional oil assets in established regions may provide a degree of insulation against market volatility.
From an investment standpoint, Berry Corporation (NASDAQ:BRY) has attracted attention as a strong dividend-paying stock. The company offers a forward dividend of $0.58 per share as of February 2025. Its strategic emphasis on maintaining strong liquidity and generating free cash flow shows the potential to capitalize on potential market upswings. Investors considering exposure to the oil and gas sector may find Berry Corporation a compelling option. As a value stock, it offers both – access to the energy market and stability through shareholder-friendly policies. While the stock has faced some headwinds, dipping approximately 20% over the past year, recent positive movements and a strong dividend yield suggest potential for future growth and income generation.
1. Gray Media, Inc. (NYSE:GTN)
Stock Price: $3.80
Number of hedge fund holders: 24
Gray Media, Inc. (NYSE:GTN), formerly known as Gray Television, Inc., is a prominent American television broadcasting company. The company has expanded its reach to cover over 36% of U.S. television households. The broadcaster’s portfolio includes affiliations with major networks such as ABC, CBS, NBC, and Fox, positioning it as a significant player in the broadcast television industry.
Gray Media, Inc. (NYSE:GTN), in its recent outlook, has indicated intentions to capitalize on the burgeoning demand for content creation facilities. In this line, the company announced an acquisition plan for the television division of Meredith Corporation for $2.7 billion, expanding its station footprint and audience reach. Moves like these will solidify its stand as a leader in the broadcasting industry.
There is a strong trend among major players in the industry to adapt and survive in an atmosphere of changing consumer preferences and the rise of digital streaming platforms. Overcoming these challenges, traditional broadcasters continue to play a vital role mainly in delivering local news and content, maintaining their relevance in the media landscape. From a stock standpoint, Gray Media, Inc. (NYSE:GTN) is considered a strong dividend-paying option, appealing to income-focused investors. The company maintains a trailing annual dividend yield of 8%, with a payout ratio of 21.33%. Over the past five years, the stock has maintained an average dividend yield of 4.83%.
Gray Media, Inc. (NYSE:GTN) has demonstrated a commitment to delivering value to its shareholders through consistent dividend payouts, garnering attention from hedge funds. The company’s focus on expanding its digital footprint and exploring new content delivery avenues has positioned it well to meet the evolving media consumption trends. The company aims to leverage its extensive network and production capabilities to capitalize on emerging opportunities in content creation and distribution. With notable acquisitions and investments in infrastructure, the future trajectory looks positive for continued growth for the company, making it the best dividend penny stock to buy according to hedge funds.
Overall Gray Media, Inc. (NYSE:GTN) ranks first on our list of the best penny stocks that pay dividends. While we acknowledge the potential of GTN as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a stock that is more promising than GTN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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