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Best Dividend Paying Penny Stocks In India 2023

Indian Share Market There are a lot of potential penny stocks that can give good returns to investors. Many beginners are interested in penny stocks, due to the share price and they can gain more experience in it.

In recent times penny stocks are more searched by new traders, due to their low cost and low risk. Today we can see the Penny stocks that pay dividends in 2023.

What Are Penny Stocks

The stock value is very low which is under INR 20 in Penny stocks. Penny stocks have low Market capitalization and are illiquid ( lower trade quantity). A Penny stock company’s Market value is the total outstanding shares traded in the stock market.

11 Best Dividend Paying Penny Stocks In India 2023

These are the following companies that pay dividends in the Indian share market in 2023.

1. Standard Industries

Standard Industries is an Indian public sector company that deals with textiles and holding businesses. The company has three business segments property division, trading, production, and others. Also, it has a wide range of textiles products like interlining fabrics, cotton towels, bedsheets, cotton, blended dhoti, and many more.

These stocks gave 3 years of return 196% as compared to Nifty 100 company shares. In FY22 the company’s growth is 237% in terms of Income and PAT growth is 1469.22%. The company has a small-cap company with a total market capitalization of INR 191 Cr. In the last FY 2022, the company shows great results of Return On Equity of 375.92%.

Also Read: Best Monopoly Stocks In India

2. Geojit FinancialServices

Geojit Financial Services was incorporated in 1994 and is headquartered in Kochi, Kerala. The company’s core business was investment services. Also, the company provides financial services like online brokering for equities, distribution of mutual funds, and insurance products, portfolio management service, and margin funding.

In FY 2022 the company’s total revenue growth is 17.41%, and PAT growth is 22.29%. In recent times the company shares has a good movement in the stock market. The company is one of the best dividend-paying stocks in India in recent times. The company has a Mid-cap market cap with a total valuation of INR 1,038 Cr. Last year the company shows an ROE Return On Equity of 23.37%.


CESC is Indian based power generation and electricity company incorporated in 1974. The company is Midcap with a total market capitalization of INR 9,173 Cr. Due to the current market demand, CESC stocks are in a Bullish trend. The company has the last 5 years’ CAGR of 13.5%.

CESC FY22 total revenue growth was 7.97%, and PAT growth was 2.04%. The company has thermal and solar power plants with a total power generation capacity of 800 MW. Also, it has a strong distribution network in central India like UP, Kolkata, and Rajasthan.

4. Gothi Plascon

Gothi Plascon Indian based public sector company founded in 1994, the company’s main business was real estate and Property Business. The company has a strong presence in South Indian regions like Pondhicherry, Tamil Nadu, and Karnataka.

Gothi Plascon India Limited shows great performance in the last financial year. In FY22 the company’s annual revenue growth was 10.19%, and its PAT growth was a 12.51% increase as compared to its last financial year.

5. IIFL Securities

IIFL Securities was established in 1996, with a small cap capitalization of INR 1,636Cr. The company mainly deals with financial services. It has a wide range of financial services like capital market activity, insurance brokering, and institutional research and investment banking services.

IIFL securities show excellent growth interms of annual revenue with 9.5% in the last five years. Also, it has more cash flow than its debt value. The company has great growth opportunities in the future. And it shows an FY22 ROE ( Return On Equity) of 28.47%.

6. Shree Digvijay Cement Company Ltd.

Shree Digvijay Cement was founded in 1942 and is headquartered in Gujarat, India. The core business of Shree Digvijay Cement Limited is manufacturing and selling cement and its by-products. Also, the company has various services like transporting, warehousing, supply chain, and commodity trading services.

As well as the company has an NDT testing facility for buildings, concrete mix designs, and cube testing services. Shree Digvijay Cement Company Ltd is a small-cap company with a total market value of INR 938Cr. And the company has a great ROE of 17.74% with a dividend yield of 5.42%.

7. Saven Technologies

Saven Technologies Limited is a public sector Indian-based company that mainly operates with Information technology service providers. The company has many IT services like software development and solutions, enterprise application, maintenance, and system development and implementation of business and technology solutions.

The company stocks gave 183% of share returns while comparing Nifty small cap 100 companies in 3 years of time. Saven Technologies is a small-cap company that has given great dividend yield to its investors. The company has an ROE of (Return On Equity) 21.28% in the last financial year.

8. Sarla Performance Fibers Ltd

Sarla Performance Fibers Limited comes under the penny stocks category with good dividend pay in 2023. The company was listed on textile and fabrication of polyester, nylon textured, covered yarns, high tenacity yarns, and sewing threads. The company was doing business in domestic and international markets. The company stocks gave good returns over the 3 years with 166.7% compared to Nifty small cap 100 companies.

Sarla Performance Fibers Ltd is a small cap with a total market capitalization of INR 315Cr. The company gave returns on equity up to 12.84% with a dividend yield of 5.30%.

9. Steel City Securities Ltd

Steel City Securities Ltd is Indian based brokering service-providing company. The company has a wide range of portfolios with stock broking, DP Operations, and E-governance operations. Also, the company provides various services like capital markets, futures, options, and distribution of mutual funds, bonds, and IPOs.

Steel City Securities Ltd has given good dividends to its investors. The company was listed on small-cap with total market visualization of INR 94 Cr. Also, it has great financial fundamentals with an ROE of 7.37% and its dividend yield is 2.83% in the last financial year.

10. Andhra Petrochemicals Ltd

Andhra Petrochemicals Ltd was founded in 1984, the company mainly deals with the production of oxo-alcohols, 2-ethyl hexanol, butanol, and isobutanol chemicals. Also, the company has a wide range of chemical products like solvent blends for dyestuffs and coating industries.

Andhra Petrochemicals Ltd is a manufacturer of petroleum-related products, the company was listed in the small-cap category with total market capital of INR 535Cr. The company has a low-level debt-to-equity ratio of 0.16%. And the company shares have given a dividend yield to investors of up to 4.77%.

11. Advani Hotels & Resorts [India] Ltd

Advani Hotels & Resorts Ltd is a public sector company that mainly deals with hotels and resorts. The company has various resorts and 5-star hotels in South Goa. Also, the company has various packages of tours and travel as well as mobile food service business.

The company works in the hotel and tourist segments with a total market capital of INR 345 Cr. After covid the company shares gain more value and its revenue also increased. In the last Financial year, its shares were given a dividend yield of up to 3.62% with an ROE of 13.98%.

Factors Before Investing In High-Dividend Paying Penny Stocks

Before investing in Penny stocks that pay dividends you need to consider the following factors.

1. Market Trend

Every industry has its ups and downs, so before looking forward to investing in stocks make sure of the current market conditions and the upcoming future opportunities. Because this can affect the stock values.

2. Evaluate the Company’s Fundamentals

It’s more important to analyze the company’s fundamentals, like its business strategy, financial history, technical terms, and debt values. Because financially strong companies can able to give you good returns in long-term investment.

3. Government Policies

Also, the company’s stock performance can be affected by unstable government policies. Indian is like a democratic country due to the change in government there will be a high chance of regulatory policies.

4. Valuation

If you want to invest in high-paying dividend stocks make sure to evaluate the company’s current net worth and whether its share price is overvalued or not.

Also Read: Best Energy Sector Stocks In India

Best Dividend Paying Penny Stocks In India 2023

Company NameMarket Cap in CrDiv Yield %
Standard Industries187.21 8.58
Geojit FinancialServices1016.167.05
Gothi Plascon35.365.77
IIFL Securities1647.445.57
Shree Digvijay Cement Company Ltd.939.755.41
Saven Technologies40.805.31
Sarla Performance Fibers Ltd316.475.28
Steel City Securities Ltd94.424.80
Andhra Petrochemicals Ltd548.224.62
Advani Hotels & Resorts [India] Ltd341.924.61


Dividend-pay penny stocks are a good choice for investing, but before investing make sure to analyze current market trends and seek advice from your financial advisor. Hope you like this article Best Dividend Paying Penny Stocks in India 2023.


What Are Penny Stocks?

The share value which is below INR 20 is called Penny stocks

Is it safe to buy Penny Stocks?

No, there is also risk involved in investing in penny stocks.

How To Buy Penny Stocks?

Initially, you need a Demat account for investing in penny stocks.

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