In this article, we will take a look at some of the best dividend penny stocks to buy according to analysts.
Having a stable income, in the shape of dividends, is one thing, and owning a stock that is cheap yet valuable is perhaps a cherry on top. Analysts believe that small- or micro-cap firms, that are among the dividend-paying names, deliver long-term value, only if selected with care.
Dividends act as what we call “a paycheck from the investment,” and when this dividend is reinvested into acquiring more shares, the compounding effect happens. We generally associate dividend-paying companies with large-cap companies, but that’s not always the case.
According to a report by equity strategists at Goldman Sachs Group, trading in shares of stocks below $1 represented 47% of total volume across the U.S. equity market on June 12, the highest share of daily trading on record. But combine the two, penny stocks and higher dividends than the market, and you have the perfect stock.
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Our methodology:
We have compiled a list of the 10 best dividend penny stocks using the Finviz stock screener. After filtering for dividend yield greater than 2% and stock price less than $5, only those stocks have been chosen that have a positive upside potential, according to one-year price targets by Yahoo Finance analysts. These stocks are then ranked according to forward dividend yield.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. FTAI Infrastructure Inc. (NASDAQ:FIP)
Forward Dividend Yield as of August 23, 2025: 2.26%
Upside potential: 112.97%
Tejara Capital Ltd has increased its position in FTAI Infrastructure Inc. (NASDAQ:FIP), according to the most recent Form 13F filing with the SEC. With the purchase of an additional 294,500 shares, valued at $1,334,000, the bank now owns 0.26% of the stock.
At the core of the company’s strength lies Transtar, a highly valuable rail gem that contributes 57% to the total revenue. Recently, FTAI Infrastructure Inc. (NASDAQ:FIP) signed deals to expand its railroad business, which is the key profit driver, while other assets are at varying stages of profitability.
What’s even more interesting is that FTAI Infrastructure Inc. (NASDAQ:FIP) could also benefit from opportunities coming from deregulatory divestments linked to Class I railroad consolidations. One thing’s clear: the company’s assets are extremely compelling and protected by the difficulty of imitation.
FTAI Infrastructure Inc. (NASDAQ:FIP) is a New York-based company that acquires and manages assets that represent infrastructure for customers in the transportation, energy, and industrial industries. Founded in 2021, the company operates in five segments: Railroad, Jefferson Terminal, Repauno, Power and Gas, and Sustainability and Energy Transition.
9. RPC, Inc. (NYSE:RES)
Forward Dividend Yield as of August 23, 2025: 3.36%
Upside potential: 22.27%
According to the recent disclosure with the Securities and Exchange Commission (SEC), Cetera Investment Advisers has increased its stake in RPC, Inc. (NYSE:RES) by 9% by acquiring 7,620 shares during the quarter. With a total of 92,321 shares of the company’s stock, the investment adviser holdings stand at approximately $508,000.
What’s truly attractive is that RPC, Inc. (NYSE:RES) is in a segment that’s not only tech-oriented and ever-evolving, but also highly cyclical. The two key areas the company needs to maintain are investments and acquisitions, as technology and market needs are constantly evolving.
If RPC, Inc. (NYSE:RES) adopts the right strategies, the company can indeed become a “big” one-stop shop. In its latest earnings call, management highlights its focus on prudent capital investments and capital allocation decisions in an attempt to improve its balance sheet and fully leverage opportunities as they arise.
RPC, Inc. (NYSE:RES), based in Georgia and founded in 1984, offers a range of oilfield services and products for oil and gas companies. With two main segments: Technical Services and Support Services, the company operates in various markets including the Middle East, Canada, Argentina, and China.
