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.
8. Nokia Oyj (NYSE:NOK)
Forward Dividend Yield as of August 23, 2025: 3.62%
Upside potential: 26.45%
Deutsche Bank AG, a German investment bank and financial services company, has raised its stake in Nokia Oyj (NYSE:NOK) by 129.4% in the first quarter. Following the purchase of 4,835,005 shares, the bank now owns approximately 0.16% of NOK, an investment valued at $45,179,000.
Many believe the company’s case is that of a buried treasure. We have witnessed the stock’s downfall, but now Nokia Oyj (NYSE:NOK) has reinvented itself as a leader in the telecommunications infrastructure, leaving its phone business far behind. From the global rollout of 5G and AI automation to 6G research and private wireless networks, the company has expanded into numerous growth catalysts, which is what makes it so interesting.
Just recently, Nokia Oyj (NYSE:NOK) announced its collaboration with ProRail, a government organization responsible for the national railway network infrastructure, to implement a cloud-native GSM-R core system.
Nokia Oyj (NYSE:NOK), based in Finland, is a provider of mobile, fixed, and cloud network solutions. Incorporated in 1865, the company operates in four segments: Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies.
7. Grupo Televisa, S.A.B. (NYSE:TV)
Forward Dividend Yield as of August 23, 2025: 3.64%
Upside potential: 41.37%
Grupo Televisa, S.A.B. (NYSE:TV) has an average rating of “Hold” from five MarketBeat analysts, with one analyst recommending a buy. The one-year price target of $4.70 signals a potential upside of nearly 89%.
Earlier on Tuesday, Atria Wealth Solutions Inc. increased its stake in Grupo Televisa, S.A.B. (NYSE:TV) by a whopping 100% during the first quarter. As disclosed with the SEC, the firm owns 49,000 shares of the company’s stock following the purchase of an additional 24,500 shares.
Many view ViX, the Spanish-language streaming platform, to drive the future of Grupo Televisa, S.A.B. (NYSE:TV). During the latest earnings call, the management expressed confidence in its efforts to retain and enhance customers in Cable, signalling an improved Internet subscriber base.
Grupo Televisa, S.A.B. (NYSE:TV) is a Mexican company that, together with its subsidiaries, owns and operates cable companies and offers direct-to-home satellite pay television services. With mainly two segments: Cable and Sky, the company is committed to blending advanced technology with human creativity.
6. Gerdau S.A. (NYSE:GGB)
Forward Dividend Yield as of August 23, 2025: 3.69%
Upside potential: 35.91%
LGT Group Foundation has increased its position in Gerdau S.A. (NYSE:GGB) through the acquisition of 124,590 shares, valued at $354,000, in the first quarter, as disclosed in its latest Form 13F filing with the Securities and Exchange Commission (SEC).
The company’s bullish case is based on two things: the U.S. market strength and operational diversification. This enables Gerdau S.A. (NYSE:GGB) to fully mitigate risks associated with steel cycles and counter the challenges related to Brazil. The company’s exposure in the US is one to note, particularly as this market is safeguarded from spreads by protectionism.
While Gerdau S.A. (NYSE: GGB) continues to maintain its position as one of the key players in the steel industry, the Brazilian market is gaining momentum. With operation adjustments in place, costs per ton are anticipated to reduce in 3Q25, contributing to overall margin recovery.
Gerdau S.A. (NYSE:GGB), founded in 1901, is a steel producer company that operates through four segments: Brazil Business, North America Business, South America Business, and Special Steel Business. Headquartered in São Paulo, Brazil, the company is committed to generating sustainable value.
5. Alight, Inc. (NYSE:ALIT)
Forward Dividend Yield as of August 23, 2025: 4.13%
Upside potential: 112.17%
Deutsche Bank AG has increased its stake in Alight, Inc. (NYSE:ALIT) by 10.3% in the first quarter, according to its recent 13F filing with the SEC. With the purchase of an additional 172,919 shares, the firm now owns 1,855,854 shares of the company’s stock, valued at $11,005,000.
During its latest earnings call, the management highlighted its leadership position as a technology-enabled employee benefit services company. New deals, improved commercial execution, and steps toward expanded margins are among the many initiatives that Alight, Inc. (NYSE:ALIT) is taking to create a better tomorrow.
What’s quite noteworthy is the company’s partnership with Goldman Sachs Asset Management, which is an effort to enhance the company’s wealth offerings. This is what Guilmette calls “a significant revenue growth opportunity over the next few years.”
Alight, Inc. (NYSE: ALIT), headquartered in Illinois and founded in 2020, is a technology-enabled services company with global operations. The core offerings of the company include AI-led capabilities, software, and cloud-based employee engagement products, such as healthcare navigation, leave of absence management, and retiree healthcare.
4. Banco Bradesco S.A. (NYSE:BBD)
Forward Dividend Yield as of August 23, 2025: 5.77%
Upside potential: 8.72%
Moerus Capital Management LLC has increased its position in Banco Bradesco S.A. (NYSE:BBD) during the first quarter, making the stock its fifth-largest holding. With 12,274,580 shares, valued at $27,372,000, the firm owns 0.12% of the company’s stock.
Banco Bradesco S.A. (NYSE:BBD) recently delivered strong quarter results, with the loan portfolio witnessing a 11.7% year-over-year growth rate and non-performing loans maintaining stability at 4.1%. These metrics, alongside the 15.8% YoY rise in net interest income, signal one thing: higher profitability.
Analysts believe that the bank’s digital transformation and efficiency initiatives will drive the future of Banco Bradesco S.A. (NYSE:BBD). Not only this, the dividend yield of 6% is anything but ordinary within its industry. Despite fintech competition and market concerns, the company offers value and attractive cash flow for investors betting on tomorrow.
Banco Bradesco S.A. (NYSE:BBD) is a Brazilian company that, along with its subsidiaries, offers banking products and services to individuals and institutions. Founded in 1943, the company operates in two segments: Banking and Insurance.
3. CuriosityStream Inc. (NASDAQ:CURI)
Forward Dividend Yield as of August 23, 2025: 7.31%
Upside potential: 40.87%
Penn Mutual Asset Management has increased its stake in CuriosityStream Inc. (NASDAQ:CURI) through the purchase of 245,289 shares, according to the latest Form 13F filing with the SEC. The firm now owns 0.43% of CURI, ranking it as the 18th largest position in the portfolio.
The streaming powerhouse is one of the companies that has captured the spotlight in recent times. Although small in size, CuriosityStream Inc. (NASDAQ:CURI) has climbed over 250% this year. Much of the optimism surrounds the growth in AI licensing revenues. The company is securing licensing deals with AI firms to utilize its content for model training, an effort to monetize its existing content.
Investors are eyeing CuriosityStream Inc. (NASDAQ:CURI) as the company continues to sign new AI content licenses, the impact of which will be evident in the quarters ahead. This, along with cost-cutting initiatives, will shape the company’s future.
CuriosityStream Inc. (NASDAQ:CURI) is a Maryland-based media and entertainment company that offers factual content via several channels. With a mission to satisfy humanity’s enduring curiosity, the company provides video and audio programming services across a range of categories.
2. Medical Properties Trust, Inc. (NYSE:MPW)
Forward Dividend Yield as of August 23, 2025: 7.42%
Upside potential: 14.39%
As disclosed with the Securities and Exchange Commission (SEC), TriaGen Wealth Management LLC has increased its position in Medical Properties Trust, Inc. (NYSE:MPW) through the acquisition of 107,266 shares, valued at approximately $647,000.
Portfolio restructuring and new operator transitions have truly assisted Medical Properties Trust, Inc. (NYSE:MPW) in addressing tenant challenges. Although the company’s gross debt remains four times its market capitalization, if it continues to stabilize FFO, back its dividend, and power growth, there’s a good reason to believe in the stock.
We know that Medical Properties Trust, Inc. (NYSE:MPW) has navigated through the toughest times, but now it appears set for a comeback fueled by acquisitions. As there are currently no dividend risks, the company’s risk profile is positive for investors at this stage of restructuring.
Medical Properties Trust, Inc. (NYSE:MPW) is an Alabama-based self-advised real estate investment trust that acquires and develops net-leased hospital facilities. Founded in 2003, the company is one of the leading owners of hospital real estate.
1. ACCO Brands Corporation (NYSE:ACCO)
Forward Dividend Yield as of August 23, 2025: 7.48%
Upside potential: 116.21%
Analysts at Barrington Research have reaffirmed their “Outperform” rating on ACCO Brands Corporation (NYSE:ACCO) with a price target of $6, implying a potential upside of nearly 54.24% from the current price. The company’s strong cash flows, high dividend yield, and aggressive cost-cutting make it one of the strongest players in the market.
The management is focusing on two main things: debt reduction and cost savings. ACCO Brands Corporation (NYSE:ACCO) is in the midst of a $100 million cost reduction program, having already yielded over $40 million in savings. This means that the company’s balance sheet is expected only to improve in the future, with strengthened dividend and buyback potential.
Despite long-term concerns, factors such as increasing customer sentiment, the depreciation of the dollar, and management’s cost-efficiency strategies will position ACCO Brands Corporation (NYSE:ACCO) well in a sustainable income play.
ACCO Brands Corporation (NYSE:ACCO) is an Illinois-based manufacturer and seller of consumer, school, technology, and office products across a range of markets. Founded in 1893, the company operates in two segments: ACCO Brands Americas and ACCO Brands International.
While we acknowledge the potential of ACCO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ACCO and that has 100x upside potential, check out our report about this cheapest AI stock.
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