There is quite an expansive definition in place for penny stocks. Most people hear “penny stock,” and they think about a stock that is selling for a few pennies. There are plenty of these out there that are like gambling at the casino, but they can pay off for sure.
Still, the definition continues to include the stocks that are just shy of a dollar and even on up to five dollars according to many stock classification guidelines. In fact, there are even penny stocks that pay dividends and have been paying them comfortably for years.
What if I told you about a penny stock that sits comfortably around four dollars a share and was even less than that when the recession hit but was still a solid company in good health and paying a good dividend. The stock ticker is GLDC, otherwise known as Golden Enterprises.
Have you seen the Golden Flake brand? It is a snacks brand, and that is one reason why this is such a great pick. They are notorious for cheaper snacks, such as chips, and they have been around for quite some time. The company has remained healthy for decades.
Additionally, while picking a penny stock to ride that horse on up to a 500 percent return sounds nice, that can be very hard to do. It’s always fun to look at those picks, too, but take a look at another advantage for investors who pick a penny stock like GLDC.
Small investors often have a hard time accumulating enough shares to ride a stock on up and really rake in the profits. They have to do some building first, but how cool is it that stocks like Golden Enterprises, which mimics a blue chip stock only priced much lower, pays a solid dividend and finds you owning tons of shares? It’s very appealing, and you can reinvest those dividends and ride the stock on up, too.
It has pretty much doubled in the last several years, and GLDC pays a solid yield. It might not be the highest yield, but again remember the discount you get and how solid the stock has performed. Not only that, but this company can achieve growth, giving you a nice ride on up in share price when you’ve got all those shares. It could just be that winning lottery ticket that penny stock investors dream about.
What other penny stocks to watch out for in 2015? Another one of my favorites that I always recommend a look at is Sirius XM. At one point, they too were thinking about introducing a dividend. One of my stocks that I picked back during the recession was another food company, BGS , that paid a dividend and was a penny stock under five dollars. Now, it’s selling for much more than that and still pays a healthy dividend that is truly at the top of the list.
What you want from a penny stock is one that really does show promise, not one that is a shot in the dark. A few more to look at this year are MGH, DEI and LSG. Take a look!