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10 Best Dividend Penny Stocks to Buy According to Analysts

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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.

Image by Alexsander-777 from Pixabay

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.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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1. Head over to our website and subscribe to our Premium Readership Newsletter for just $0.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Regular price $9.99/mo. Cancel anytime.