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.
9. eXp World Holdings, Inc. (NASDAQ:AGNT)
Number of Hedge Fund Holders: 17
Share Price as of the Close of May 15: $4.75
On May 13, DA Davidson lowered the firm’s price recommendation on eXp World Holdings, Inc. (NASDAQ:AGNT) to $10.25 from $11. It reiterated a Buy rating on the shares. The firm said the company delivered solid execution in Q1 despite a weak housing market and an uncertain macro environment. DA Davidson also pointed to a decline in eXp World Holdings’ total agent count compared to Q4. Its checks suggested that the trend has largely continued into Q2.
During the Q1 2026 earnings call, Chief Financial Officer Jesse Hill said stronger agent productivity helped more agents reach their cap during the quarter. That contributed to the gross profit of $75.3 million. Hill also said the company’s operating loss narrowed to $8.8 million in the quarter, improving 15% from the $10.4 million loss reported a year earlier. He added that adjusted EBITDA reached $4.1 million, above the midpoint of the company’s guidance range of $2 million to $5 million.
He further noted that the company increased its cash position by 6% year-over-year, ending the quarter with $122 million in cash on the balance sheet. According to Hill, the North America Realty segment generated $965.1 million in revenue during the first quarter and delivered $10 million in adjusted EBITDA. He also said the international segment remained the company’s fastest-growing business, posting 27% growth in Q1.
Meanwhile, Founder, Chairman, and CEO Glenn Sanford said the company changed its ticker symbol to AGNT recently. He stressed that the move represented more than a cosmetic change.
eXp World Holdings, Inc. (NASDAQ:AGNT) is the holding company for eXp Realty and SUCCESS Enterprises. eXp Realty is an independent real estate brokerage with more than 82,000 agents across 29 countries. The company also offers agents commission splits, revenue sharing, equity ownership opportunities, and access to a global network designed to help them grow their businesses.
8. Brandywine Realty Trust (NYSE:BDN)
Number of Hedge Fund Holders: 19
Share Price as of the Close of May 15: $2.99
On April 27, Truist lowered the firm’s price recommendation on Brandywine Realty Trust (NYSE:BDN) to $3 from $3.50. It reiterated a Hold rating on the shares. The analyst said the stock’s discounted valuation appeared justified because of continued pressure on earnings and cash flow. Part of that pressure stems from the expected 2027 expiration of the company’s largest tenant lease, according to the research note.
During the Q1 2026 earnings call, President, CEO, and Trustee Jerry Sweeney discussed the company’s efforts around capital recycling and reducing leverage. He said the portfolio recycling and debt reduction program was progressing on schedule, with nearly $305 million in potential asset sales already under agreement. He also noted that most of those deals were expected to close during the second quarter.
Sweeney pointed to ongoing strength in the Philadelphia leasing market, saying tenants continued to prefer higher-quality properties. He added that Brandywine accounted for 41% of all new leases signed in the market during the period, which reflected the company’s expanding market share. On balance sheet priorities, Sweeney reiterated that lowering leverage and returning to investment-grade metrics remained the company’s primary focus.
At the same time, he said part of the proceeds from asset sales could be directed toward share repurchases. He noted that about $82 million remained available under the current buyback authorization.
Brandywine Realty Trust (NYSE:BDN) is a self-managed real estate investment trust (REIT) focused on acquiring, developing, redeveloping, owning, and operating a portfolio of office, life science, residential, and mixed-use properties.
7. Ready Capital Corporation (NYSE:RC)
Number of Hedge Fund Holders: 20
Share Price as of the Close of May 15: $1.73
On May 12, Keefe Bruyette lowered the firm’s price recommendation on Ready Capital Corporation (NYSE:RC) to $1.40 from $1.60. It reiterated an Underperform rating on the shares.
During the Q1 2026 earnings call, Chairman, CEO, and Chief Investment Officer Thomas Capasse said the company continued to move forward with its balance sheet repositioning strategy that began in the fourth quarter of 2025. He noted that the company had generated $1.4 billion in cash so far this year through loan sales and liquidations. According to Capasse, those proceeds helped reduce more than $1.1 billion in warehouse debt and retire another $184 million in corporate debt.
Capasse also discussed the company’s liquidity plans, saying management expected to generate an additional $400 million in liquidity from the sale and runoff of between $2 billion and $2.5 billion in CRE loans and REO assets by the end of the year. He added that, based on current projections, those actions, combined with existing liquidity, were expected to be sufficient to address the company’s remaining 2026 debt maturities and support future cash flow needs.
Meanwhile, CFO and Secretary Andrew Ahlborn said the company reported a GAAP loss from continuing operations of $1.25 per common share during the quarter. He also noted that distributable earnings reflected a loss of $1 per common share, or a loss of $0.33 per share after excluding realized losses related to asset sales.
Ready Capital Corporation (NYSE:RC) is a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market investor and owner-occupied commercial real estate loans.
6. FTAI Infrastructure Inc. (NASDAQ:FIP)
Number of Hedge Fund Holders: 20
Share Price as of the Close of May 15: $1.73
FTAI Infrastructure Inc. (NASDAQ:FIP) reported its Q1 2026 earnings on May 7. During the earnings call, CEO and President Kenneth Nicholson discussed the planned sale of Long Ridge, stating that FTAI had reached an agreement to sell the asset to MARA Holdings for $1.52 billion. He said the transaction was expected to close in the third quarter of 2026, pending regulatory approvals, with no other significant conditions remaining. Nicholson also noted that the existing debt tied to Long Ridge would either be repaid or taken over by the buyer, which should leave FTAI with more than $300 million in net proceeds.
According to Nicholson, the sale aligns with two major company goals: lowering leverage and sharpening the focus on the core freight rail business. He added that management expects 2026 to be a busy year for the railroad segment and said the company is currently evaluating several rail-related opportunities.
On the balance sheet, Nicholson said FTAI plans to reduce parent-level debt by at least $300 million while cutting annual parent-level interest expense by roughly $30 million. He noted that those moves should strengthen the company’s leverage profile. Nicholson also expressed confidence in the company’s Jefferson and Repauno terminal assets. He said management remains focused on improving earnings at both facilities before eventually pursuing monetization opportunities. He also pointed to improved financial performance during the quarter, with adjusted EBITDA rising to $70.6 million from $35.2 million in the first quarter of 2025.
Nicholson added that results were affected by a 25-day outage at Long Ridge, which weighed on both revenue and EBITDA during the quarter. He said consolidated Q1 EBITDA would have topped $80 million without the outage impact.
FTAI Infrastructure Inc. (NASDAQ:FIP) develops, acquires, and operates infrastructure assets that support customers in the transportation, energy, and industrial sectors.
While we acknowledge the potential of FIP as an investment, 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 FIP and that has 100x upside potential, check out our report about the cheapest AI stock.
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