Let us start with a simple question.
What would you rather do: spend Rs 50,000 or Rs 10,000 to earn Rs 500 in annual dividends?
You’d pick the second option, right?
And that’s the power of high-yield dividend stocks.
Today, we’re diving into some of these income machines in the penny stock space. These are low priced stocks that pay much higher dividends than the average stock.
Some investors think that penny stocks are risky, or low-quality companies.
But here’s a little secret most investors overlook. If chosen carefully, especially the ones that keep making regular payouts, these smaller companies can turn out to be big winners for your portfolio.
In this article, we’ll show you five high-yield penny stocks that stand out from the pack.
Advani Hotels & Resorts (India)
Advani Hotels & Resorts owns and operates the Caravela Beach Resort Goa, a 5-star deluxe property located on Varca Beach in South Goa.
The resort has 201 rooms and offers a range of amenities, including a golf course, multiple dining options, and extensive event facilities.
Advani Hotels core business includes providing guest accommodation, food and drink facilities, entertainment facilities, among other things.
The company has a strong track record of rewarding its shareholders with consistent dividends.
Over the past two decades, excluding covid-hit FY21, Advani Hotels has distributed dividends each year, totalling Rs 6.7 bn.
At the current price of Rs 60, the company has a dividend yield of 3%. So far in FY25, the company has already declared two dividends of Rs 0.8 and Re 1 per share.
The company has a strong return on equity (ROE) of 36.9% and has maintained a high dividend payout of almost 100% in recent years.
Although it trades at 8.3 times its book value, the company remains virtually debt-free and has shown steady profitability growth.
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Despite a fall in overall demand for the popular destination Goa, the Caravela Beach Resort has been able to maintain a steady growth in all parameters. The property hosted 45 weddings in FY24,
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