Buying Penny Stocks Offering Dividends

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Buying Penny Stocks Offering Dividends

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Buying penny stocks can be even more profitable if you find the penny stock companies offering dividends. – PowerPoint PPT presentation

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Title: Buying Penny Stocks Offering Dividends


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Penny Stock Research
Buying Penny Stocks Offering Dividends
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  • Welcome to Penny Stock Research. Every day we
    bring you the unbiased truth about Penny Stocks.
    For more information on penny stocks please visit
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  • PennyStockResearch.com

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  • Get Your Free Report On Penny Stocks For 2016!
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  • at the end of the video!

4
  • Hi, My name is Aaron and Im with Penny Stock
    Research, today were reviewing our recently
    published article

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  • There are numerous strategies to be found when it
    comes to buying penny stocks. We talk about
    different ideas all the time at this site. And,
    if you take the time to look,

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  • it wont be hard to find plenty of additional
    opinions on the matter. But, heres a penny stock
    tip which you may not see that often buy penny
    stocks with dividends.

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  • But, heres a penny stock tip which you may not
    see that often buy penny stocks with
    dividends.Wait, penny stocks can offer dividends?
    Am I sure? Yes, in fact penny stocks can and do
    offer dividends.

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  • There are more out there than you think. Of
    course, there are risks, just like with any
    investing related to penny stocks. Ill get back
    to the risks in a minute.

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  • So how do you go about buying penny stocks with
    dividends?

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  • The first thing to realize is there are a limited
    number of penny stock dividend companies. More
    importantly, all of them are listed on the major
    exchanges (NASDAQ, AMEX, NYSE). Were not
    talking about OTC stocks here.

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  • Still, among the major exchanges, there are close
    to 50 stocks under 2 which still offer
    dividends.
  • Heres an example

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  • In case youre not familiar, TheStreet TST is
    Jim Cramers company. Its a digital financial
    media company which makes money from subscription
    based investment services.

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  • Now, TST isnt going to knock your socks off as
    a great investment. However, the company has a
    large amount of subscribers and the backing of
    Jim Cramer.

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  • Most likely, there arent any solvency issues
    lurking around the corner. Meanwhile, this low
    priced stock pays almost a 6 dividend! That
    certainly makes it an interesting company to
    invest in.

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  • So what are the risks with penny stock dividends?

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  • As you would expect, there are risks associated
    with penny stock companies offering dividends.
    First and foremost, most of these companies were
    probably priced much higher when they started
    offering dividends.

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  • In all likelihood, the companies have not
    performed as well as expected in order to be
    trading at under 2 a share. This is clearly
    your first point of concern. Why is the stock so
    cheap?

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  • The thing is, once a stock gets down to these
    levels, its much more likely to cut back or
    abandon its dividend. You must be prepared for
    that scenario if you buy a dividend stock priced
    at these levels.

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  • Nevertheless, you can hold the stock as long as
    it issues a dividend and dump it if the dividend
    goes away. Its still not a bad idea to collect
    the dividend while you can.

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  • Another risk is many of these cheap dividend
    companies are not US-based. That means it will
    be harder to research them and understand what
    theyre about. Of course, you can stick to US
    stocks, but it will roughly halve your choices.

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  • Finally, many penny stocks with dividends are in
    the basic materials sector. That includes oil,
    gas, and gold companies primarily. Thats not a
    problem if you understand the risks.

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  • Just keep in mind, basic materials companies are
    getting hammered right now, so dont expect a
    quick turnaround.

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  • As I said before, there are certainly risks to
    owning penny stocks with dividends. But, there
    are more choices than you may have guessed.

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  • And, several of these dividends offer an
    attractive yield. If you do your research, you
    may be able to capture these high yields
    indefinitely.

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