Investing in high dividend-paying penny stocks can be a smart strategy for investors looking to balance capital appreciation with steady income. While penny stocks are often considered high-risk, some companies have a consistent track record of rewarding their shareholders through dividends. Here are five penny stocks that regularly pay dividends and have strong financials.

1. Jagran Prakashan – A Leading Media Giant with a Strong Digital Presence

Jagran Prakashan is a well-known name in India's media industry. It owns Dainik Jagran, one of the most widely read newspapers in the country. Beyond print, the company has expanded into radio, digital platforms, and outdoor advertising.

Key Highlights:

• Digital Expansion: Its subsidiary, Jagran New Media, is launching a buyer application on ONDC (Open Network for Digital Commerce), targeting Tier II and III cities.
• Cloud Migration: The company has shifted its digital platforms to Google Cloud for enhanced user experience.
• Dividend Yield: Currently at 7.04%.
• Financial Growth: Expected earnings growth of 16% and revenue growth of 10%.
• Content Portfolio Expansion: Jagran New Media has added nine content platforms covering news, education, entertainment, lifestyle, and health.

With its aggressive digital push and strong dividend track record, Jagran Prakashan remains a top choice for dividend-focused penny stock investors.

2. Advani Hotels & Resorts – A Consistent Performer in the Hospitality Sector

Advani Hotels operates the Caravela Beach Resort, a 5-star deluxe property in Goa with 201 rooms, a golf course, multiple dining options, and event facilities.

Key Highlights:

• Dividend Consistency: Has paid dividends for over 20 years, barring COVID-affected FY21.
• Current Dividend Yield: 3%.
• FY25 Dividends: Declared ₹0.8 and ₹1 per share so far.
• High ROE: Return on Equity (ROE) stands at 36.9%.
• Debt-Free Status: The company has virtually zero debt.
• Expansion: Hosting a record 45 weddings in FY24, showcasing strong business demand.
• Future Plans: A ₹20 crore project for a new banquet hall facility.

With consistent dividends and strong growth in the hospitality industry, Advani Hotels is an excellent dividend stock for investors looking at the tourism and hospitality sector.

3. NHPC – The Hydropower Leader with a Renewable Future

NHPC is India’s largest hydropower generation company, playing a key role in renewable energy production.

Key Highlights:

• Power Generation: Produced 15,013 million units in H1FY25.
• Solar Expansion: Announced a ₹5500 crore investment in a 1,000 MW solar power project in Bihar.
• Dividend Yield: 2.5%.
• Consistent Payouts: Declared 26 dividends since 2010.
• FY24 Dividend: ₹1.9 per share, with an interim dividend of ₹1.4 per share in FY25.
• Growth Drivers:
• Large projects like Dibang and Teesta-VI nearing completion.
• Evaluating stake acquisition in PTC India.
• Developing pumped storage projects in Rajasthan, Odisha, and Maharashtra.

With strong government backing and expansion in solar and hydropower, NHPC remains a safe dividend-paying penny stock for long-term investors.

4. Vardhman Acrylics – A Strong Player in Acrylic Fiber Industry

Vardhman Acrylics Ltd, a subsidiary of Vardhman Textiles Ltd, specializes in acrylic fiber and tow production.

Key Highlights:

• Market Leadership: A dominant player in India's acrylic fiber industry.
• Dividend Yield: 4.43%.
• High Dividend Payout: Maintained nearly 100% payout, despite a 29.1% revenue drop in FY24.
• Past Performance: In FY22, it paid a ₹25 per share dividend, one of the highest.
• Debt-Free: Ensures financial stability and steady cash flow.
• Growth Strategy: Focus on operational efficiency and market diversification.

With global demand expected to rise, Vardhman Acrylics is well-positioned for stable returns and dividend payouts.

5. Jamna Auto Industries – A Market Leader in Suspension Systems

Jamna Auto Industries is a leading manufacturer of suspension solutions for commercial vehicles, holding a 62-65% market share in India.

Key Highlights:

• Product Range: Manufactures leaf springs, parabolic springs, air suspensions, and lift axles.
• Manufacturing Strength: Operates 11 facilities across India.
• Revenue Stream: 90% sales from leaf springs.
• Dividend Consistency: Has consistently paid dividends for the last 15 years.
• Dividend Payout History:
• FY24: ₹2.4 per share.
• FY23: ₹1.9 per share.
• FY22: ₹1.5 per share.
• FY21: ₹0.75 per share.
• FY25: ₹1 per share so far.
• Growth Focus: Expanding aftermarket services and export markets.
• Key Clients: Tata Motors, Daimler India, and Volvo Commercial Vehicles.

With its strong market position and consistent dividend track record, Jamna Auto Industries is an attractive high-dividend penny stock.

Conclusion

Investing in high-dividend penny stocks can be a rewarding strategy, provided you pick companies with strong financials, consistent payouts, and growth potential. The five stocks listed here – Jagran Prakashan, Advani Hotels, NHPC, Vardhman Acrylics, and Jamna Auto Industries – have a solid history of dividend payments and promising future prospects.

If you are looking for high-yield penny stocks with steady returns, these stocks deserve a place on your watchlist.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult a financial advisor before making investment decisions.