In this article, we will take a look at the 11 Best Dividend Penny Stocks to Buy Right Now.
Penny stocks are low-priced shares, often trading below $5, that usually belong to smaller companies. They are commonly traded on over-the-counter markets and tend to have lower liquidity and much higher volatility than established stocks. Investors generally view them as high-risk investments because reliable company information and steady trading activity can be limited.
Many investors are drawn to penny stocks because of their growth potential. The low share prices also make them easier to access for people starting with smaller amounts of money. Some investors use them as a small part of a broader portfolio, hoping for higher rewards while accepting the added risk. Their sharp price movements can also attract active traders, though prices can move against investors just as quickly.
According to Saxo Group, the risks tied to penny stocks are serious and often very different from those linked to larger companies. These include high volatility and gap risk, liquidity and execution risk, such as wide bid-offer spreads, and information and disclosure risk that can make fundamental analysis difficult. Company failure, market manipulation, and fraud also appear more often in thinly traded stocks.
Last year, The Wall Street Journal reported that among 2024 penny-stock IPOs with one-year return data available as of September 30, share prices had fallen an average of 37% from their offer prices. The figures came from research by Jay Ritter, who has tracked the IPO market since the late 1970s. For penny-stock IPOs launched between 2001 and 2023, the average three-year decline reached 62%.
Even with that weak long-term performance, the number of penny-stock IPOs, generally defined as stocks priced below $5, has continued to rise.
Given this, we will take a look at some of the best dividend penny stocks.
Photo by Vitaly Taranov on Unsplash
Our Methodology:
For this list, we screened for dividend stocks with a share price below $5, as of the close of May 15. From that list, we picked 11 companies that were most popular among hedge funds, as per Insider Monkey’s database of Q4 2025.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
11. Granite Point Mortgage Trust Inc. (NYSE:GPMT)
Number of Hedge Fund Holders: 13
Share Price as of the Close of May 15: $1.37
On May 12, Keefe Bruyette lowered its price recommendation on Granite Point Mortgage Trust Inc. (NYSE:GPMT) to $1.50 from $1.65. It reiterated a Market Perform rating on the stock.
During the company’s Q1 2026 earnings call, Stephen Alpart, VP, Chief Investment Officer, and Co-Head of Originations, said Granite Point ended the quarter with $1.6 billion in total loan portfolio commitments. The amount included $1.5 billion in outstanding principal balance and nearly $68 million in future funding obligations. Alpart also said the portfolio’s weighted average risk rating increased to 3.2 as of March 31, compared with 2.9 at the end of December. That increase pointed to some added pressure within the portfolio during the quarter.
At the same time, VP, CFO, and Treasurer Blake Johnson said the company reported a GAAP net loss attributable to common stockholders of $6 million, or -$0.13 per basic common share, in the first quarter. He added that Granite Point also posted a distributable loss of $3 million, or -$0.06 per basic common share.
Granite Point Mortgage Trust Inc. (NYSE:GPMT) is an internally managed real estate finance company that mainly focuses on originating, investing in, and managing senior floating-rate commercial mortgage loans, along with other debt and debt-like commercial real estate investments.
10. CuriosityStream Inc. (NASDAQ:CURI)
Number of Hedge Fund Holders: 17
Share Price as of the Close of May 15: $2.52
On May 15, Barrington analyst Patrick Sholl lowered the firm’s price recommendation on CuriosityStream Inc. (NASDAQ:CURI) to $5 from $5.50. He reiterated an Outperform rating on the shares. In a research note, the analyst said the company’s licensing revenue remains “lumpy,” though the improvement in free cash flow since the dividend was introduced was an encouraging sign.
During the Q1 2026 earnings call, President, CEO, and Director Clint Stinchcomb said the company remained focused on turning CuriosityStream into a business capable of generating $100 million or more in reliable, recurring, and increasingly predictable annualized revenue. Stinchcomb said the company made several deliberate decisions during the first quarter that pressured short-term quarterly revenue. He added that those moves were expected to improve revenue opportunities over the medium and long term.
He also noted that first-quarter revenue reached $15.2 million, reflecting slight year-over-year growth. In addition, Stinchcomb said the company expected to sustain double-digit growth in both revenue and cash flow, driven by continued expansion in subscriptions and licensing. He further stated that the quarterly dividend would increase from $0.05 to $0.085. According to Stinchcomb, the company planned to fund its 2026 dividends through cash generated from operations, similar to its approach in 2024.
CuriosityStream Inc. (NASDAQ:CURI) is a media and entertainment company that provides video and audio programming focused on factual entertainment. Its content spans categories including science, history, society, nature, lifestyle, and technology. The company says its programming is designed to inform, enchant, and inspire viewers.
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