High-Yield Dividend Penny Stocks: Do Penny Stocks Pay Dividends Worth Your Attention?

Many investors assume penny stocks are purely speculative growth plays with no income potential. But a growing segment of penny stocks do pay dividends—and some offer yields exceeding 8%, making the question of whether penny stocks pay dividends increasingly relevant for income-focused traders.

Understanding Dividend-Paying Penny Stocks

Penny stocks typically refer to shares trading below $5, though some definitions extend to $10. Most prioritize growth over income. However, the three stocks examined here break that mold by delivering substantial dividend yields alongside growth potential.

Investors hunting in this space want two things: quick capital appreciation and immediate income. These dividend-paying penny stocks attempt to satisfy both appetites simultaneously. The challenge? They come with elevated volatility and inconsistent payout histories that require careful due diligence.

Sasol: High Yield Meets High Risk

Sasol (NYSE: SSL) trades near $8 and represents the premium entry point among these dividend-paying penny stocks. As a South African-headquartered integrated energy and chemical company, it’s positioned as an oil major with exposure to volatile commodity markets.

The numbers are compelling but risky. The stock sports a beta of 2.28—meaning it swings more than twice as hard as the broader market. More concerningly, its dividend history shows weakness: it was cut in 2023, yet currently yields close to 12% on a semi-annual basis.

The fundamentals paint a mixed picture. Oil and petrochemical prices remain depressed while inflationary pressures mount. The chemicals division faces a steeper challenge with a 24% decline in market basket pricing. Yet the opportunity exists: if commodity prices spike—particularly in oil and petrochemicals—Sasol could see dramatic upside. The energy market’s current instability cuts both ways.

Enel Chile: The Stability Play

Enel Chile (NYSE: ENIC) offers a materially different risk profile. With a beta of just 0.72, this electric utilities company exhibits far steadier behavior than Sasol.

Utilities inherently provide stability. Electricity consumption patterns are predictable and recurring. Moreover, these firms typically hold near-monopoly positions within their geographic footprints, creating structural competitive moats.

ENIC mirrors Sasol’s 12% semi-annual dividend yield, though it reduced payouts in 2022. The encouraging sign: fundamentals are accelerating. EBITDA jumped 56% during Q3 2023 and the first nine months of the year. As Chile’s largest utility by installed capacity and customer base, the company sits atop solid operational footing.

Medical Properties Trust: Recovery Story

Medical Properties Trust (NYSE: MPW) stock trades just under $4 and tells a redemption narrative. Following Q4 and full-year results announced February 21, shares spiked 5% on positive sentiment.

The catalyst: the company is profitably unloading five hospital properties, with the divestiture expected to generate a 7.4% cap rate and $17 million in proceeds. This signals management competence in acquiring hospital assets and executing value-accretive exits.

For dividend hunters, the real draw is the 15%+ yield—the highest among the three dividend-paying penny stocks reviewed here. After a rough 2023, the U.S.'s largest hospital REIT appears to have stabilized. Recent earnings demonstrate improving operational health and strategic clarity.

The Bottom Line

Do penny stocks pay dividends worth considering? These three examples suggest yes—but with caveats. Sasol offers aggressive upside with commodity leverage. Enel Chile provides steadier returns through utility stability. Medical Properties Trust combines recovery potential with outsized income.

All three carry risks: dividend cuts remain possible, valuations can shift suddenly, and underlying businesses face sector-specific headwinds. Income-focused traders must weigh these 8%-to-15% yields against volatility profiles and dividend sustainability.