Stocks that sell for 2.00 or less and pay dividends are called penny stocks. Penny stocks are typically low priced stocks valued under $5 a share. Penny stocks are usually so inexpensive because they are stocks from small, upstart companies that are speculative, or in other words risky.
So, the next question should be, why would anyone invest in penny stocks? The answer is simple; investors are banking on the potential of the company to rise out of the stock market basement into the market penthouse. Potential is what investors with the stomach for this type of investment pay for. People who invest in penny stocks hope to earn big dollars when/if the company ever grows and becomes a viable, lucrative investment. Many would argue that penny stocks are the way for novices to be able to get into investing but on the contrary, quite a few investors are in fact very market-savvy individuals who want to maximize their investment dollar. However, because these individuals are savvy, they also want to mitigate their investment some and that is why some elect to invest in penny stocks that pay a dividend.
If these types of investment sounds like something you might be interested you will probably want to take a look at the list below which lists dividend paying penny stocks. And just to make it clear it is important that you do your own research before buying because when it comes to stocks anything can change at any time.
Stocks that Sell for 2.00 or Less and Pay Dividends
Afexa Life Sciences (FXA.TO) is a Toronto, Canada based company that specializes in the research, commercialization and development of natural medicines.
African Gold Group, Inc. ( AGG.V) is yet another Toronto, Canadian based company that principally engages in the development, exploration and acquisition of gold properties in West Africa
BAB Inc (BABB.OB) is a company that licenses and provides franchising opportunities for bagel and coffee retail stores. The two prominent trade names under this company is Big Apple Bagels and My Favorite Muffin.
Bimini Capital Management (BMNM.OB) is a real estate investment trust that invests primarily in mortgage backed securities.
Blue River Bancshares Inc (BRBI.OB ) is a holding company that provides banking services for Shelby County and Paramount Bank in south central Indiana.
First Point Minerals Corp (FPX.V) is a company that explores for gold, silver, nickel, iron and other metal properties throughout North America.
Horizon Lines, Inc (HRZ) provides logistics services to and container shipping throughout the United States
Lynden Energy Corp (LVL.V ) is dedicated to exploring and developing natural gas properties as well as petroleum throughout the United States and Canada.
Pachamama Resources, Ltd (PMA.V) is yet another company that seeks to explore and develop various mineral properties throughout North and South America.
Tiger International Resources Inc (TGR.V) also seeks to acquire and explore different mining areas throughout the Philippines. The company’s primary interest is in gold and copper.
When investing in stocks that sell for 2.00 or less and pay dividends, there is the potential to make a great deal of money but please be aware of the risk involved in trading such volatile securities.