Investing, Stock Market

6 Top Canadian Penny Stocks With Dividends For 2023

Canadian penny stocks with dividends are stocks that pay out a dividend to their shareholders. 

They offer investors the opportunity to profit by buying a small number of shares in a company, which increases the potential return on investment. 

There are thousands of penny stocks available in Canada, making it difficult for investors to choose which ones to invest in.

So what is a penny stock? How do you tell if a penny stock is a scam or not? These are all great questions. I will try my best to answer them for you below. 

This article will explain what Canadian penny stocks are and provide insight into whether or not you should consider buying penny stocks. 

So let’s get started!

Canadian penny stocks with dividends
Photo Credit: John Seek

What are Penny Stocks?

Penny stocks are a type of stock that often have low price tags but can be very profitable. 

They are stocks that sell for less than 5 dollars. Many individuals start trading penny stocks because it is easy and affordable. 

However, one of the most important things to remember when trading penny stocks is that they are highly volatile. 

This means that they can go up or down in value very quickly. For this reason, it is important to be smart when trading penny stocks. 

One way to reduce risk is to diversify your portfolio by investing in a variety of penny stocks. 

Another way to reduce risk is to do your research before investing. Make sure you understand the company and the sector they are in. 

You should also pay attention to the news surrounding the company. By being informed, you can make smart decisions about when to buy and sell penny stocks. 

Although they can be risky, penny stocks can also be profitable if you trade them wisely.

Just be sure to exercise caution and never invest more than you can afford to lose.

Best Penny Stocks With Dividends

When it comes to picking which stocks to invest in, you want to make sure that you’re choosing a high-quality penny stock. 

What does this mean exactly? Well, let me help you out by listing out some of the best Canadian penny stocks with dividends. 

Here are some of the best penny stocks with dividends in Canada:

1. Uranium Royalty Stock (URC)

Uranium Royalty is one of the best penny stocks with dividends. The company has been growing at a rapid pace, which makes it a great dividend penny stock to add to your portfolio.

The company has a diversified portfolio of assets and a strong management team with extensive experience in the uranium industry. 

Uranium Royalty’s strategy is to invest in a diversified portfolio of quality uranium assets that provide stability and income during periods of rising uranium prices, while also providing upside potential during periods of significant price increases.

Uranium is one of the most sought-after precious metals, making it an excellent investment option for any investor to diversify their portfolio.

Not only does the company offer a dividend, but it also has a strong track record of growth. For these reasons, Uranium Royalty is a stock that is worth considering for any investment portfolio.

So if you’re looking for penny stocks with dividends and high returns, you may want to consider Uranium Royalty. 

2. Hamilton Thorne Stock (HTL)

Hamilton Thorne is a leading global provider of precision instruments and consumables.

The company has a strong reputation for quality and innovation, and its products are used by some of the world’s largest clinics. 

Hamilton Thorne has a history of paying dividends, making it one of the best penny stocks with dividends for income investors. 

In addition, the company’s strong financial position and solid dividend history make it an attractive investment for long-term growth and income.

All this makes Hamilton Thorne stock one of the best penny stocks with dividends that you can invest in. 

When you invest in HTL, you can rest assured knowing that you’re investing

in a company with a strong history of success and a bright future ahead. 

So if you’re looking for a great penny stock to invest in, be sure to check out Hamilton Thorne Ltd. 

3. Xebec Adsorption Stock (XBC)

Xebec Adsorption is an industry that is quickly gaining traction as the world becomes more aware of the environmental impact of traditional manufacturing and production methods. 

The company has a long history of providing reliable and efficient services to its clients. 

In recent years, Xebec Adsorption has seen an increase in demand for its services, due to the growing awareness of the need for clean-tech solutions. 

As a result, the company’s stock price has been on the rise, and it is now one of the leading providers of clean-tech solutions in the world.

With a strong track record and a clear commitment to sustainability, Xebec Adsorption Stock can be a great option for you if you are looking for Canadian penny stocks with dividends.

4. Baytex Energy Stock (BTE)

Looking for the best penny stocks with dividends? Look no further than Baytex Energy Stock.

As a leading global provider of natural gas, they know a thing or two about dividend stocks. 

And with a strong history of paying dividends, they are certainly one penny stock worth considering. 

So if you’re looking for a dividend stock that can provide you with consistent income, be sure to give Baytex Energy a closer look.

While Hamilton Thorne is not without risk, it’s a relatively safe bet for investors looking for income from their portfolios.

5. B2Gold Stock (BTO)

B2Gold is a gold mining company with a strong portfolio of development and exploration assets.

While other gold mining companies have been struggling, B2Gold has been able to maintain its strong performance. 

This is due to the company’s focus on operating low-cost mines and hedging against inflation. 

As a result, buying the B2Gold is a fantastic method to diversify your holdings and protect yourself from market volatility. 

Although B2Gold is a speculative stock, it could be a good option for investors who are looking for exposure to precious metals.

6. Champion Iron Stock (CIA)

Champion Iron is one of the best penny stocks to buy right now for dividend investors. 

The company’s iron ore exploration projects are located in the southern Labrador Trough, which is the biggest source of iron ore in Canada. 

Champion Iron has a strong financial position and is able to pay out dividends to its shareholders.

Given the strong demand for iron ore and the company’s attractive dividend yield, Champion Iron is a great stock to consider buying for income.

Pros and Cons of Penny Stocks 

It’s important to consider both the pros and cons of penny stocks before investing in them. Here are some pros and cons to consider:

Pros of Penny Stocks:

  • Low Cost: Penny stocks are generally priced at a few dollars or less, making them affordable for investors with limited capital. This low cost allows for a larger number of shares to be purchased, potentially amplifying gains if the stock price rises.
  • Potential for High Returns: Penny stocks have the potential for significant price volatility. If a penny stock experiences a substantial price increase, investors can make substantial gains in a relatively short period. Some penny stocks have seen explosive growth, creating lucrative opportunities for investors.
  • Opportunity for Early Investment: Penny stocks often represent early-stage companies or companies with small market capitalizations. Investing in such companies at an early stage can offer the chance to participate in their growth and success, potentially leading to significant profits.
  • Diversification: Due to their low cost, penny stocks can provide an opportunity for diversification within an investment portfolio. By allocating a small portion of your capital to various penny stocks, you can spread risk across different companies and industries.

Cons of Penny Stocks:

  • High Risk: Penny stocks are highly speculative investments and are considered high-risk securities. These stocks often lack liquidity, have limited public information available, and are prone to manipulation and fraud. The risk of losing a significant portion or all of your investment is relatively high.
  • Lack of Regulation and Transparency: Penny stocks are typically traded on smaller exchanges or OTC markets that have less stringent regulatory oversight compared to major stock exchanges. This lack of regulation can lead to reduced transparency and increased vulnerability to fraudulent practices.
  • Volatility and Illiquidity: Penny stocks are known for their volatility, and their low trading volumes can result in illiquid markets. This illiquidity makes it difficult to buy or sell shares at desired prices, potentially leading to wide bid-ask spreads and difficulty exiting positions.
  • Limited Financial Information: Many penny stocks are associated with small or early-stage companies that may not provide comprehensive financial information or audited reports. This lack of information makes it challenging to assess the company’s financial health, business prospects, and management quality.
  • Pump and Dump Schemes: Penny stocks are frequently targeted by pump and dump schemes, where individuals or groups artificially inflate the stock price through false or misleading information. Once the price rises, they sell their shares, causing the price to plummet and leaving other investors with substantial losses.

It’s crucial to conduct thorough research, exercise caution, and understand the risks associated with penny stocks before considering them as an investment option. 

It’s advisable to consult with a financial advisor or professional before making any investment decisions.

Can You Get Rich Off Penny Stocks?

Investors often view penny stocks as high-risk investments. And while there is no denying that they can be volatile, there are also many examples of investors who have made a fortune by investing in penny stocks. 

So, can you get rich off penny stocks? The answer is yes – It’s possible, but it’s certainly not easy. 

There is often little public information available about penny stocks, making it difficult to make informed investment decisions.

To be successful, you need to have a deep understanding of the market and be able to identify which stocks are likely to increase in value. 

You also need to be willing to take on a higher level of risk. But for those who are willing to put in the work, investing in penny stocks can be a lucrative endeavour.

Nevertheless, to be on the safer side, it’s important to do your homework very well before investing in penny stocks. 

How Can I Buy Penny Stocks in Canada?

Investing in penny stocks can be a risky proposition, but it can also lead to big rewards. 

For those looking to get started in penny stocks, the question is often how to buy penny stocks in Canada. 

The good news is that there are several options available to Canadian investors. Penny stocks listed on U.S. stock exchanges can be purchased through most brokerages. 

However, if the penny stock you want to buy is only listed on a Canadian exchange, then you’ll need to open an account with a brokerage that offers access to those exchanges. 

Questrade and Qtrade are two popular choices for Canadian investors. Both brokerages offer online trading platforms that make it easy to buy and sell penny stocks. 

In addition, they provide research tools and resources that can help you make informed investment decisions. 

So whether you’re just getting started in the world of penny stocks, or you’re an experienced investor, Questrade and Qtrade can help you reach your investment goals.

Tips on Buying Penny Stocks in Canada

There are a few key things you need to know if you want to be successful in trading penny stocks in Canada. 

Firstly, you need to have a thorough understanding of technical analysis. When it comes to penny stocks, this is very important because there is often less public information available about these companies. 

Technical analysis is the study of past price action to identify trading opportunities. It’s a discipline that requires knowledge and experience to master, but it’s vital if you want to trade penny stocks successfully. 

You need to be able to identify patterns in the charts and understand how they can be used to make predictions about future price movements. 

Secondly, it’s important to always keep an eye on the market. Penny stocks can be volatile, so it’s crucial to stay up-to-date with the latest news and developments. 

Another key point to consider is liquidity. Penny stocks tend to be much less liquid than larger, more well-known stocks. 

This means that it can be more difficult to buy and sell penny stocks without moving the price. 

As a result, it’s important to have a firm understanding of your investment strategy before entering the market.

Finally, always remember that penny stocks are a high-risk investment. While there are certainly opportunities for large profits, there is also a real danger of losing your entire investment. 

As such, it’s important to only invest money that you can afford to lose. By following these tips, you’ll be well on your way to success in the world of penny stocks in Canada.


Penny stocks can be a great way to make money, but they can also lose you a lot of money if you’re not careful.

As a result, when trading penny stocks, it is essential to be smart and to understand the risks involved. 

Also, research is key when deciding to invest in any stock, and this is even more important for penny stocks. 

By doing your research before you get started with penny stocks, you will find some great investments. 

In this article, we have given you a quick summary of some of the best Canadian penny stocks with dividends. 

Hopefully, the information provided here can help you determine if investing in penny stocks is for you, and guide you on how to find the right penny stocks.

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Is it wise to buy penny stocks?

As mentioned earlier, penny stocks are high-risk stocks. They are very volatile and have low liquidity. However, if you do your research very well and use the right strategy, you’ll be well on your way to success with penny stocks in Canada.

How do you know when a penny stock will go up?

If you want to know when a penny stock will go up, you have to keep your ears on the ground. A spike in price and heavy volume of a penny stock can be signs that the stock is about to go up.

How long should I hold penny stocks?

Professional investors can hold penny stocks for as little as 6 minutes or up to six months. However, if you trade stocks daily, you might purchase and sell them in an average of every five or ten minutes.

Also, holding penny stocks for up to six months is possible for investors who are searching for long-term bets and do not wish to trade often off on momentum.

Is it difficult to sell penny stocks?

Yes. Penny stocks are extremely volatile and less liquid, which makes them very difficult to sell.

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About John Adebisi

John Adebisi is a CPA, FCCA and MBA holder with a Bachelor's degree in Accounting & Finance. He has over a decade of experience in writing personal and business finance content for audiences across North America, Europe, the UK and Africa. In addition to his writing experience, he also has a strong background in financial research and analysis, giving him a unique perspective of the financial markets. John derives pleasure in helping people make smart financial decisions, and he believes that knowledge and experience can be valuable resources for anyone who wants to learn how to manage their money.

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