5 Best Dividend-Paying Penny Stocks in Australia for 2025 (Steady Income & Growth!)

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Introduction

Dividend-paying penny stocks are a rare but valuable find in the Australian stock market. Unlike most penny stocks, which focus on growth and volatility, these stocks offer regular dividend payouts while still having the potential for capital appreciation. In this article, we'll explore some of the best dividend-paying penny stocks on the ASX in 2025, covering their share prices, market caps, dividend yields, and why they could be worth adding to your portfolio.

Why Invest in Dividend-Paying Penny Stocks?

Investing in dividend-paying penny stocks can provide:

• Steady Income – Regular dividend payments while benefiting from potential price appreciation.

• Lower Risk – Dividend-paying companies often have stronger financials than speculative penny stocks.

• Compound Growth – Reinvesting dividends can significantly boost your overall returns.

• Diversification – Exposure to different sectors while maintaining an income stream.

Top Dividend-Paying Penny Stocks in Australia (2025)

1. SRG Global Limited (ASX: SRG)

• Share Price: A$0.83

• Market Cap: A$400 million

• Dividend Yield: 5.65% (FY 2024) | 8.1% (FY 2025 forecasted)

• Company Overview: SRG Global is a leading engineering, construction, and maintenance services provider. With a strong order book and government contracts, it offers stability and growth potential.

• More Info: SRG Global - ASX

2. LaserBond Limited (ASX: LBL)

• Share Price: A$0.60

• Market Cap: A$100 million

• Dividend Yield: 4.2%

• Company Overview: LaserBond specializes in surface engineering solutions, extending the lifespan of industrial components. With consistent revenue growth, it remains a strong dividend payer.

• More Info: LaserBond - Yahoo Finance

3. GR Engineering Services Limited (ASX: GNG)

• Share Price: A$1.20

• Market Cap: A$190 million

• Dividend Yield: 9.55%

• Company Overview: GR Engineering is a mineral processing and infrastructure company with strong earnings. Its high dividend yield is backed by consistent profits.

• More Info: GR Engineering - Forbes

4. WAM Capital Limited (ASX: WAM)

• Share Price: A$2.20

• Market Cap: A$1.75 billion

• Dividend Yield: 10.84%

• Company Overview: WAM Capital invests in high-growth ASX stocks, distributing profits through strong dividend payouts.

• More Info: WAM Capital - Finder

5. New Hope Corporation Limited (ASX: NHC)

• Share Price: A$2.50

• Market Cap: A$4.19 billion

• Dividend Yield: 8.87%

• Company Overview: New Hope Corporation is a coal mining and energy company with a strong dividend track record.

• More Info: New Hope - Finder

6. Fortescue Metals Group Ltd (ASX: FMG)

• Share Price: A$18.89

• Market Cap: A$56.19 billion

• Dividend Yield: 10.43%

• Company Overview: A leading iron ore producer, Fortescue consistently pays dividends due to high demand for commodities.

• More Info: Fortescue - Forbes

7. Yancoal Australia Ltd (ASX: YAL)

• Share Price: A$5.90

• Market Cap: A$7.8 billion

• Dividend Yield: 8.64%

• Company Overview: A major coal producer with diversified operations across Australia, offering strong dividend yields.

• More Info: Yancoal - ASX

8. Spark New Zealand Ltd (ASX: SPK)

• Share Price: A$2.67

• Market Cap: A$4.9 billion

• Dividend Yield: 9.45%

• Company Overview: A leading telecommunications provider, Spark has a stable business model and solid dividend payout.

• More Info: Spark NZ - Market Index

9. McMillan Shakespeare Ltd (ASX: MMS)

• Share Price: A$15.13

• Market Cap: A$1.3 billion

• Dividend Yield: 10.18%

• Company Overview: Provides salary packaging and financial services, generating stable revenue and high dividends.

• More Info: McMillan Shakespeare - Market Index

10. SG Fleet Group Ltd (ASX: SGF)

• Share Price: A$3.45

• Market Cap: A$1.2 billion

• Dividend Yield: 9.84%

• Company Overview: A vehicle leasing and fleet management company, consistently paying strong dividends.

• More Info: SG Fleet - ASX

Risks of Investing in Dividend-Paying Penny Stocks

While dividend-paying penny stocks offer great income potential, they also come with risks:

• Market Volatility – Penny stocks are prone to price fluctuations.

• Dividend Cuts – A company may reduce or suspend dividends if profits decline.

• Sector Risk – Stocks in industries like mining or energy are sensitive to commodity prices.

• Liquidity Issues – Penny stocks can have lower trading volumes, making them harder to sell quickly.

Related Posts:

What Stock Pays the Highest Dividend in Australia?

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Stocks That Pay Monthly Dividends: Your Guide for 2025

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Top Dividend Stocks to Watch in 2025

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Final Thoughts

Dividend-paying penny stocks provide a great way to earn passive income while investing in growth stocks. While they come with risks, choosing companies with strong financials and stable industries can increase your chances of long-term success. Always research thoroughly and diversify your investments.

Disclaimer

This article is for informational purposes only and should not be considered financial advice. Investing in penny stocks carries risks, and past performance is not indicative of future results. Always consult a licensed financial advisor before making investment decisions.