High Dividend Penny Stocks With Higher Growth Potential 2025

Image 1: High Dividend Penny Stocks

High dividend penny stocks are low-priced shares that distribute a portion of the company’s profits to investors through dividends. It also provides regular cash payments to investors who are just starting out with a small amount of money. High dividend penny stocks that pay dividends can be a good way to enter the stock market without incurring significant expenses. 

And the best part of penny stocks that pay dividends is that while you hold these stocks, you can earn regular income from the dividends, and if the price of the stocks is up over time, you can make more money when you sell the best high dividend penny stocks in India. 

High Dividend Penny Stocks by Market Capitalisation

Here is the list of the best high dividend penny stocks that pay dividends in 2025 for exemplary returns. Explore the best high dividend penny stocks in India below.

Disclaimer: Please be aware that investing in the best penny stocks that pay dividends or high dividend penny stocks in India comes with inherent risks due to volatile market conditions and low liquidity. It is recommended to conduct your own research on the high dividend penny stocks list to make an informed investment decision on the high dividend penny stocks list. 

Overview of High Dividend Penny Stocks 

1. NHPC 

Founded: 1975

Headquarters: Faridabad, Haryana 

Market Capitalisation: ₹86,237.00 crore

NHPC is one of the largest Indian hydropower development organisations. It was established in 1975. It is owned and managed by the government enterprises. It focuses on the planning, promoting, and organising the development of hydroelectric power in and out of the country. NHPC is one of the best penny stocks that pays dividends in India. It delivered a 3.82% dividend last year. It is one of the high dividend penny stocks in India that can generate better returns in the future.

NHPC is involved in the operations and development of renewable energy and is expanding into solar energy projects. It is working on improving the operational efficiency that impacts the financial performance. According to the Economic Times, NHPC is giving the project to Patel Engineering for ₹240 crore. The project is for the Teesta V hydroelectric plant located in Sikkim.

2. Taparia Tools 

Founded: 1969  

Headquarters: Mumbai

Market Capitalisation: Rs 43.00 crore

Taparia Tools is an Indian manufacturer of hand tools. It was established in 1969, and it focused on the quality and innovation of carpentry woodworking tools like electrical lamps and lamps & lighting, Elora tools, etc. Taparia Tools was started in technical collaboration with the BACHO of Sweden, which helps maintain a high manufacturing standard. These are the best high dividend penny stocks that pay dividends to get a better result in the future.

Taparia Tools has experienced strong growth in sales, profit, and return on equity. Taparia Tools is one of the best penny stocks that pays dividends. It delivered Rs 25.00 per share last year. As per the print week, India Taparia Tools Limited (505685) expands into the market.

3. Trident

Founded: 1990  

Headquarters: Ludhiana, Punjab

Market Capitalisation: Rs 16,063.00 crore

Trident Limited is an India-based company that engages in manufacturing, trading, and selling textiles (towels and bedsheets), paper, and chemicals. Trident has a global customer base across 100 countries on 6 continents, and it works with the major retail brands. Trident Ltd. is a high dividend penny stock in India that will generate higher returns in the long term.

 Trident is one of the best penny stocks that pays dividends. It delivered the Rs 0.36 cash dividend in the last year. As per CNBC, 18 Trident shares gained up to 5% after Q1 results.

4. UCO Bank   

Founded: 1943

Headquarters: BTM Sarani, Kolkata

Market Capitalisation: Rs 38,735.00 crore

UCO Bank is known as United Commercial Bank. It is an Indian public sector bank, and it provides financial services. UCO Bank provides services like consumer banking, corporate banking, and various financial and insurance products. The branches of UCO Bank are in Hong Kong and Singapore, as well as in Tehran. It has strong growth in total business, advances, and net profit, according to reports.

UCO Bank is one of the best high dividend penny stocks in India to get a better result in the future. UCO Bank is one of the best penny stocks that pays dividends. It delivered 2.22% in one year. As per the Economic Times, UCO Bank’s total business and net profit grew by 10% YOY to Rs 607 Crore, and NII also jumped to 7%. 

5. Central Bank of India 

Founded: 1911

Headquarters: Mumbai

Market Capitalisation: Rs 34,097.00 crore

The Central Bank of India is a commercial bank in India. It is one of the oldest and largest banks in India, and it is owned and managed by the Ministry of Finance. The Central Bank of India provides all the services to the customers, like financial services, which include retail and corporate banking services, loans, and deposit accounts. The Central Bank of India is one of the best high dividend penny stocks in India that can generate exemplary returns. 

The Central Bank of India has seen strong growth in total deposits, business, and gross advances in the recent quarter. The Q1 increased by 33% to Rs 1169 crore. The Central Bank of India is one of the best penny stocks that pays dividends. It delivered a 0.50% dividend in the past year. As per The Hindu, the Central Bank of India’s Q1 net profit rises 33% to Rs 1169 Crore.

6. Motherson Sumi Wiring India

Founded: 2020

Headquarters: Noida, Uttar Pradesh

Market Capitalisation: Rs 27,422.00 crore

Mother Sumi Wiring India Limited is a joint venture company between Samvardhana Motherson International Limited and Sumitomo Wiring System Ltd. It is a leading and fast-growing network to provide a full system solution to OEMs in India. It specialises in manufacturing and supplying wiring harnesses in India. It is one of the high dividend penny stocks in India that will generate higher returns in the coming years.

It is one of the best penny stocks that pays dividends in the stock market. It delivered 0.56% in one year. It generated revenue growth from FY 2021-22, Rs 56,350 million, to FY 2023-24, Rs 83,282 million. As per Money Control, Mother Sumi Wiring India’s share has risen by 2.21%. 

7. Abirami Financial Services 

Founded: 1993

Headquarters: Chennai, Tamil Nadu

Market Capitalisation: Rs 25.00 crore

Abirami Financial Services is a non-banking financial company registered with the Reserve Bank of India. It is listed on the Bombay Stock Exchange, and it focuses on hire purchase, leasing, and lending money against security and property. It is one of the high dividend penny stocks in India that can generate better returns in the long term. Abirami Financial Services is one of the best penny stocks that pays dividends in the coming year. It delivered a 0.00% dividend in one year. The company has a good track record on equity, with a 3-year average of 29.3%, which is a positive sign for investors. 

8. Gothi Plascon India

Founded: 1994

Headquarters: Puducherry,

Market Capitalisation: Rs 44.00 crore

Gothi Plascon India is an Indian-based company that deals in the real estate and property business. It focuses on introducing the plastic disposable product in the Indian market. This company is owned by Shri Parasmal Gothi; he is also the chairman and managing director of the company. It is one of the best high dividend penny stocks in India that will deliver tremendous returns. 

The company has increased its net sales, rising from Rs 4.37 crore in 2019 to Rs 4.37 crore in 2025. Gothi Plascon India is the best penny stock that pays dividends; it delivered 4.68% in the last year. As per Markets Mojo, Gothi Plascon faces mixed financial indicators amid strong stock performance. 

9. Jagran prakashan

Founded: 1975

Headquarters: Kanpur, Uttar Pradesh

Market Capitalisation: Rs 1,599.00 crore

Jagran Prakashan is the largest print media conglomerate company in India. It deals with the print, radio, digital, and other media. It advertises in the newspaper, magazine, radio, digital platforms, and door-to-door advertising. It is one of the best high dividend penny stocks in India that will get a better result in the future. It shows strong growth in profit of 21.74% over the past 3 years. Jagaran Prakshan is one of the best penny stocks that pays dividends. It delivered 8.17% over the past one year. 

What are High Dividend Penny Stocks?

The best penny stocks that pay dividends are a great choice for investors who want to start small and still earn regular income. These dividend penny stocks are low-priced shares that pay part of the company’s profits to shareholders. Unlike most cheap stocks that only offer growth if their price rises, the best high dividend penny stocks that pay dividends give you both growth potential and steady returns through dividends. 

Some of the best high dividend penny stocks in India include companies like NHPC, Taparia Tools, Trident, and UCO Bank, etc. which offer attractive yields despite their low share prices. If you’re looking for regular income, some monthly high dividend penny stocks—though rare—can give payouts more frequently, helping investors earn steady cash flow. While these stocks come with higher risk, the regular dividend payments can help reduce that risk by providing consistent returns even if the share price doesn’t move much.

The best high dividend penny stocks in India to invest in in 2025 are NHPC, Taparia Tools, Trident, UCO Bank, Central Bank, Abirami Financials, and Jagran Prakashan. Have an overview of such companies to make an informed investment decision to book your ideal returns.

High Dividend Penny Stocks in India: Have an Exposure

The best high dividend penny stocks in India are a good option for investors who want to start small with their income in the Indian stock market. The price of stock is under ₹100, making them the best penny stocks that offer dividend opportunities for a beginner. What makes them more attractive is that they also pay dividends, which are regular cash payouts from the company’s profits. So, if you wait for the stock price to rise, you receive the income. Some high dividend penny stocks are risky to provide better income to the investors.

That’s why it’s important to choose the best penny stocks that pay dividends from companies with good financial health, strong track records, and transparent management. If you choose carefully, high dividend penny stocks that pay dividends can be helpful to give a better return in the future. 

Furthermore, investors considered it a promising sector attracting higher foreign direct investments (FDIs) from global nations. Undoubtedly, high dividend penny stocks that pay dividends have a bright future, but a few people still need clarification on which high dividend penny stocks to buy now. This piece of research would help them choose the potential investment options to generate sustainable returns. Scroll down to learn more about the high dividend penny stocks and their aspects. 

High Dividend Penny Stocks List With P/E Ratio 

Explore the top high dividend penny stocks that pay dividends with their P/E ratio. 

Benefits of High Dividend Penny Stocks 

Here are the significant benefits of high dividend penny stocks in India. 

1. Low investment required

Investors can purchase these high dividend penny stocks for a small amount of money, typically under ₹50 or ₹100, making them ideal for beginners or small investors. Their low price allows people to start investing without needing a large budget, making it easier to build a portfolio and gain experience in the stock market.

2. Regular Income

These stocks pay you a part of the company’s profits, known as dividends, usually every year or quarter. This means that even if the high dividend penny stocks price doesn’t rise immediately, you still receive regular income just for holding the shares, making them a steady source of earnings. Investors can buy the penny stocks that pay dividends; they can make the regular income in the future. 

3. Growth potential

If the company grows over time, the price of stock and dividend payouts can both increase, giving a higher return. Many of the best penny stocks that pay dividends belong to small and growing companies. High dividend penny stocks can allow investors to earn higher profits from the dividend companies. 

4.  Portfolio Diversification

High dividend penny stocks in your portfolio can spread your risk. These stocks balance out your other investments by adding a mix of regular income through dividends and potential growth, making your overall investment strategy more stable and diverse.

Factors to Consider for High Dividend Penny Stocks 

One should consider multiple factors before investing in high dividend penny stocks in India. These factors might help individuals make an informed investment decision to avoid significant losses in the Indian stock market. Look at the factors to consider when exploring the high dividend penny stocks list.

1. Dividend Yield Demonstrable

High dividend penny stocks show high dividend yields, which can seem very attractive, but they may not always be reliable. It’s important to see that investors are investing in companies that are actually earning high dividends, penny stocks, as the top high dividend penny stocks are from the Indian stock market. A dividend that looks too good to be true often is. One way to judge this is by looking at the payout ratio, which shows how much of the company’s earnings are being used to pay dividends. If the company is paying out more than it earns, the dividend is unlikely to last. 

2. Financial Growth

Before investing in the best high dividend penny stocks in India, it’s important to check the company’s profits, cash flow, and debt. If a company is making good profits, has enough cash, and doesn’t have too much debt, it’s more likely to keep paying dividends regularly. Strong financial health means the company can handle tough times and still reward its investors.

3. Business Models

While you’re investing in companies, you need to understand the simple and stable business models. Choose from the best high dividend penny stocks that pay dividends regularly. While you pick the companies that have unclear revenue and don’t have an uncertain future. 

4. Growth potential 

If the company growth plan is followed, the price of stock and dividend payouts can both increase and give a higher return in the future. Many of the best penny stocks that pay dividends belong to small and growing companies. The best high dividend penny stocks that pay dividends can allow investors to earn higher profits from the dividend companies. 

High Dividend Penny Stocks List With 5-Year Returns

Explore the top high dividend penny stocks list with 5-year returns. 

High Dividend Penny Stocks List With Dividend Yields

Here is the top list of the best penny stocks that pay dividends, with a dividend yield

High Dividend Penny Stocks List With 5-Year CAGR

Look at the list of best penny stocks that pay dividends with their 5-year CAGR (Compound Annual Growth Rate).

Disclaimer: Please be aware that investing in high-dividend penny stocks or dividend penny stocks in the public and government sector in India comes with inherent risks due to volatile market conditions and low liquidity. It is recommended to conduct your own research on the high dividend penny stocks list to make an informed investment decision on the list of penny stocks that pay dividends. 

How to Pick the Top High Dividend Penny Stocks? 

Here is how to pick from the dividend penny stock list that pays dividends. Explore the step-by-step guide to make informed investment decisions. 

1. Check profitability

Explore the best high dividend penny stocks that pay dividends that belong to the private and government sectors, which make a consistent profit in the stock market. High dividend penny stocks make a profit for the investors in the future.  

2.  Dividend payout

Make sure the company has paid dividends regularly in the previous years. Pick the best penny stocks that pay dividends in India, like NHPC Ltd, Taparia Tools Ltd., Trident Ltd., Uco Bank Ltd., Central Bank of India Ltd., etc.  

3. Business Models

While you’re investing in companies, you need to understand the simple and stable business models. Choose from the best high dividend penny stocks list that pays dividends regularly. While you pick the companies that have unclear revenue and don’t have an uncertain future. 

4.  Financial Analysis

Identify the best penny stocks that pay dividends in profitable companies. Before you invest in companies, investors look at the cash flows and low debt levels. The company is more profitable and is more likely to pay dividends regularly.

Also Read : Best Education Stocks in India for 2025: High-Growth Education Stocks

Risk in High Dividend Penny Stocks List with Mitigation Strategies

High dividend penny stocks often deliver multibagger returns but also come with some risks. Here are the significant risks involved in the best penny stocks that pay dividends. 

1. Price Manipulation

The best high dividend penny stocks that pay dividends in India are low-priced and can be easily used by investors and change the price unjustly. These investors can buy and sell a large number of dividend paying penny stocks to divert retail investors.

Mitigation Strategies: Beware of such fraudulent practices in the top high dividend penny stocks list to avoid significant losses. 

2. Low Liquidity 

These stocks do not trade too much, so even small buying or selling can cause big changes in the price of the best high dividend penny stocks in India. You might find it hard to sell your shares when you want to and could end up losing money.

Mitigation Strategies: Invest only a small amount so you can sell it easily. Check how much the stock is usually traded to see if you can exit without trouble. 

3. Shortage of transparency

High dividend penny stocks companies often share very little or old financial information, and few experts review them. This makes it easy for investors to research the company properly before investing in the top high dividend penny stocks.

Mitigation Strategies: Stick to companies with audited reports, SEC/SEBI filings, and analyst coverage. Prefer the stocks listed on regulated exchanges.

Who Should Invest in High Dividend Penny Stocks?

Here is the list of investors who should pick from the high dividend penny stocks list that pay dividends.

1. Risk-Tolerant Investors

Investors with moderate/high-risk tolerance can pick from the top high dividend penny stocks list. Prefer investing a small capital amount in these stocks to take part in the high-risk, high-reward play! 

2. Small Investors

The top high dividend penny stocks that pay dividends can help you invest a small amount of capital to generate higher returns. Explore the latest high dividend penny stocks now to buy a large number of shares with less capital to build wealth.

3. Portfolio Diversifier

The low price of dividend penny stocks often comes with high growth potential to offset the previous losses of an individual’s portfolio. Those who are looking for the best penny stocks that pay dividends in India to diversify their portfolio can consider investing in such of the best high dividend penny stocks in India.

Other High Dividend Penny Stocks 

How to Invest in High Dividend Penny Stocks?

Here is the step-by-step guide for investing in the top-performing high dividend penny stocks in India. 

• Step 1: Research the best penny stocks that pay dividends or the best high dividend penny stocks list with their financial and fundamental parameters. 
• Step 2: Select the top government-backed high dividend penny stocks to diversify your investment portfolio. 
• Step 3: Open a demat account on Univest, navigate to the search section, and look for the selected stocks. 
• Step 4: Place a buy order for the best-performing high dividend penny stocks and execute it to invest successfully. 
• Step 5: Track your returns in the portfolio section and wait for the right time to book returns.

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Why Invest in High Dividend Penny Stocks?

1. Regular income

The high dividend penny stocks that pay dividend are shares in companies that pay regular payouts to their investors, known as dividends. These payments can serve as a reliable source of income for those looking to make money from their investments. By investing in the top high dividend stocks, you can earn a consistent cash flow over time, making them a popular choice for long-term investors.

2. Volatility

The best high dividend penny stocks in India are shares in companies that pay regular payments, called dividends, to their investors. These payments are often made every quarter and provide a regular income stream. For investors, this means you can earn money not just from the rise in stock prices, but also from regular cash payouts.

3. Investment portfolio 

High dividend penny stocks can help investors build a fund to achieve financial goals, like retirement or purchasing a home. Instead of taking the dividends as cash, investors can choose to reinvest them into other options, like mutual funds, to diversify their portfolio and potentially grow their wealth even more. This strategy helps maximise returns while working towards long-term financial security.

Let’s Wrap 

Investing in the best penny stocks that pay dividends in the high dividend penny stocks list can diversify your investment portfolio and provide sustainable returns over the long term. However, investing carefully through different investment factors, such as financial health, technical analysis, business model, regulatory environment, and more, is essential. Top high dividend penny stocks in India include NHPC, Taparia Tools, Trident, UCO Bank, Central Bank, etc. 

Have a look at the top high dividend penny stocks to get sustainable returns on your capital investment!

Also Read : Defence Industry Stocks in India for 2025 | Defence Stocks List With Price

FAQs on High Dividend Penny Stocks

Which penny stocks give the highest dividend?

Ans. Explore the latest high dividend penny stocks below.

Which stock is best in the dividend sector?

Ans. Explore the best high dividend penny stocks in India that pay a return in 5-year returns.

Which high dividend penny stocks could boom in 2025?

Top high dividend penny stocks that could boom in 2025 include NHPC Ltd., Taparia Tools Ltd., Trident Ltd., UCO Bank Ltd., Central Bank of India Ltd., and Motherson Sumi Wiring India Ltd.

What are the top 5 dividend-paying stocks in India? 

Explore the high dividend penny stocks in India. 

How to choose high dividend penny Stocks while investing?

While you pick the high dividend penny stocks, before you investigate the company’s cash flow, history of paying debts and low debts, check their financial analysis to give better results. 

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