Best dividend-paying penny stocks in India: SJVN, Steel City Securities, Choksi Imaging, Gothi Plascon

Looking for high dividend-paying stocks to buy in India? Penny stocks can ensure great dividend payments and thus contribute to capital appreciation. Penny stocks are stocks that are traded at extremely low prices on small stock exchanges. They have low market capitalisation and can be bought for as low as under Rs. 10. They offer good returns to investors but also carry some risk. Now that you know what a penny stock is, let’s see how you can invest in them.

In order to find suitable penny stocks to buy, consider companies that are financially sound and well-established in their respective industries. This way, you can expect a steady dividend. Consistent past performance and high net profit are also good indicators of the highest dividend paying penny stocks in India.

Keeping these aspects in mind, here is a list of the best dividend-paying penny stocks in India. If you are interested in trading penny stocks on the stock market, you could consider one of the following options:

Best penny stocks to buy in India

• SJVN: Satluj Jal Vidyut Nigam is a government-owned company in the electricity domain and generates hydroelectric power. It also offers consultancy for hydro-power projects. SJVN has a dividend yield of 7.8% and has issued 19 dividends since September 2010. It is one of the best dividend-paying penny stocks in India with a high dividend of Rs 2.20 per share. 
• Steel City Securities: This stockbroking firm ranks second on the list of penny stocks in India. Steel City Securities is a small-cap company that was founded in 1995. If you invest in this company, you can expect to receive a dividend of Rs 3 per share. The dividend yield of the share at present is 5.03%.
• Choksi Imaging: Founded in 1992, Choksi Imaging is another small-cap company that offers one of the best dividend-paying penny stocks. It sells photographic products such as colour doppler, X-ray film, as well as other accessories. The company offers special dividends of 4.95%, making it a good investment option. 
• Gothi Plascon: The company was founded in 1994 and is a part of the plastics industry. Since March 2020, Gothi Plascon has issued equity dividends of Re 1. The company’s dividend stocks yield 4.03%. 
• Rail Vikas Nigam: Rail Vikas Nigam is another one on the list of best penny stocks in India. Since last year, the company has declared an equity dividend of Rs 2.28 per share. It now offers a high yield of 7.52% at the current share price. 
• TCFC Finance: With a market capitalisation of Rs 43.82 crore, this small-cap firm is active in the financial services domain. Investing in penny stocks of this company can get you an equity dividend of Rs 1.50 per share. TCFC offers top penny stocks India with a dividend yield of 3.65%. 
• Pressman Advertising: A part of the media and entertainment sector, Pressman Advertising has been debt-free for the last five years. This is one of the best penny stocks to buy now, with a yield of 3.44%.
• Sumedha Fiscal: Sumedha Fiscal has offered stock returns of 39.52% in the last three years. The company’s dividend yield is 3.25%, which makes it one of the best penny stocks to buy at this time. 

Also read: Which are the stocks with the highest market capitalisation in India?

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.