Watch out here – Top 25 High Dividend Penny Stocks Under 100 INR

When it comes to investing in the stock market, penny stocks often grab the attention of investors seeking high returns. Adding another layer of attractiveness, high dividend penny stocks under 100 INR provide a source of passive income alongside potential capital appreciation. This article explores the top 25 penny stocks in this category, highlighting their dividend yield, market capitalization, and recent financial performance.

Introduction to Penny Stocks

Penny stocks are shares of small companies that trade at relatively low prices. Often, they represent businesses with smaller market capitalizations, making them accessible to investors with modest budgets. However, it’s essential to understand that penny stocks carry both high risk and reward potential due to their volatile nature.

Benefits of Investing in High Dividend Stocks

High dividend stocks provide dual benefits:

1. Regular Income: Dividends act as a steady income stream, offering periodic financial returns.
2. Stability: Companies distributing dividends often have stable financials, making them potentially less risky.
3. Compounding Potential: Reinvesting dividends can enhance the power of compounding and boost long-term wealth creation.

Now that you understand the basics, here is the curated list of top 25 high dividend penny stocks under 100 INR.

Top 25 High Dividend Penny Stocks Under 100 INR

1. Easy Trip Planners (₹16.55)

• Business Model: Easy Trip Planners primarily operates as an online travel agency, offering flight bookings, hotel reservations, and tour packages.
• Recent Developments: The company is expanding its partner network and working on enhancing customer experience with AI-driven tools.
• Competitive Advantage: Its asset-light business model and growing tourism sector ensure scalability.
• Potential Risks: Susceptible to demand fluctuations and competition from global platforms like MakeMyTrip.

• Dividend Yield: 0.30%
• Market Cap: ₹5,865 crore
• Key Insights: A leading travel portal, this stock offers steady dividends supported by consistent profit margins.

2. South Indian Bank (₹25.51)

• Business Model: A regional private-sector bank catering to both individual and commercial clients, with a focus on Southern India.
• Recent Developments: Improved operational efficiencies have contributed to a sharp rise in quarterly profits.
• Competitive Advantage: Established regional network and strong customer loyalty.
• Potential Risks: Faces stiff competition from larger private-sector banks.

• Dividend Yield: 1.16%
• Market Cap: ₹6,674 crore
• Recent Performance: Strong quarterly profit growth (₹324 crore), indicating improved operational efficiency.

3. Infibeam Avenues (₹26.35)

• Business Model: Engages in digital payment solutions and e-commerce platforms.
• Recent Developments: The company is expanding its merchant solutions and entering untapped rural markets.
• Competitive Advantage: A diverse product portfolio and leadership in India’s digital payment space provide a significant edge.
• Potential Risks: Regulatory changes in payment processing industries may impact revenue.

• Dividend Yield: 0.19%
• Market Cap: ₹7,349 crore
• Growth Potential: A digital payment powerhouse, this company shows steady revenue gains in India’s fintech space.

4. Trident (₹35.26)

• Business Model: A leading manufacturer in textiles and paper products, catering to both domestic and international markets.
• Recent Developments: Investments in green technology and operational automation.
• Competitive Advantage: Economies of scale and strong exports contribute significantly to profitability.
• Potential Risks: Vulnerability to fluctuations in raw material prices.

• Dividend Yield: 1.03%
• Market Cap: ₹17,969 crore
• Sector Outlook: A robust player in textiles and paper products, offering consistent returns to shareholders.

5. Ujjivan Small Finance Bank (₹35.47)

• Business Model: Focused on providing microloans to underserved segments like small businesses.
• Recent Developments: The bank reported steady growth in its loan book, with a focus on rural expansion.
• Competitive Advantage: First-mover advantage in India’s microfinance space.
• Potential Risks: High dependency on small borrowers and geographical concentration.

• Dividend Yield: 4.23%
• Market Cap: ₹6,861 crore
• Remarkable Feature: With a high dividend yield, this stock is a favorite in the banking sector.

6. UCO Bank (₹45.38)

• Business Model: A public sector bank offering a mix of retail and corporate banking services.
• Recent Developments: Significant improvement in NPAs (Non-Performing Assets) and increased digital banking capabilities.
• Competitive Advantage: Extensive penetration in rural India.
• Potential Risks: Rising competition from private players in urban areas.

• Dividend Yield: 0.61%
• Market Cap: ₹54,256 crore
• Sector Leadership: Rising profitability (₹602 crore quarterly profit) makes it a compelling choice.

7. Lloyds Enterprises (₹46.50)

• Business Model: Specializes in the production and trading of iron and steel products.
• Recent Developments: Focused on penetrating international markets to increase export revenue.
• Competitive Advantage: Strong manufacturing base and a cost-competitive position.
• Potential Risks: Fluctuating steel prices and global trade policies.

• Dividend Yield: 0.21%
• Market Cap: ₹5,915 crore
• Financial Outlook: Prominent in the metals sector with steady ROCE growth.

8. Punjab & Sind Bank (₹50.08)

• Business Model: A government-owned bank with an emphasis on SME and rural lending.
• Recent Developments: Maintains stable asset quality while expanding its technological infrastructure.
• Competitive Advantage: Strong government backing and targeted lending practices.
• Potential Risks: Profitability growth may be hindered by policy restrictions.

• Dividend Yield: 0.39%
• Market Cap: ₹33,943 crore
• Performance: Profiting from India’s growing banking penetration.

9. Allcargo Logistics (₹52.16)

• Business Model: A market leader in multimodal logistics offering end-to-end supply chain solutions.
• Recent Developments: Continued focus on expansion in warehousing and e-commerce logistics.
• Competitive Advantage: Expertise in contract logistics and scalable operations.
• Potential Risks: Vulnerability to global trade slowdowns.

• Dividend Yield: 2.09%
• Market Cap: ₹5,126 crore
• Key Highlight: An integral player in India’s booming logistics sector.

10. Bank of Maharashtra (₹54.23)

• Business Model: Public sector bank offering a broad range of banking solutions to retail clients.
• Recent Developments: Has achieved its highest quarterly net profit driven by operational efficiencies.
• Competitive Advantage: Broad rural reach and loyal customer base.
• Potential Risks: Heavy reliance on government support.

• Dividend Yield: 2.57%
• Market Cap: ₹41,711 crore
• Growth Insights: With rising profits (₹1,332 crore quarterly), it continues to deliver strong dividends to shareholders.

11. IRB Infrastructure Developers (₹57.01)

• Business Model: Specializes in highway construction and toll collection.
• Recent Developments: New contract wins have strengthened its project pipeline.
• Competitive Advantage: Presence in high-growth infrastructure development spaces.
• Potential Risks: Risks tied to project delays and government approvals.

• Dividend Yield: 0.53%
• Market Cap: ₹34,428 crore
• Sector Position: A prominent name in infrastructure development and toll collections.

12. Paisalo Digital (₹57.80)

• Business Model: A non-banking financial company with expertise in small-ticket loans.
• Recent Developments: Collaborations with government initiatives for financial inclusion.
• Competitive Advantage: High servicing efficiency and a technology-driven approach.
• Potential Risks: Risk of loan defaults in unsecured segments.

• Dividend Yield: 0.17%
• Market Cap: ₹5,190 crore
• Growth Catalyst: Focused on financing and lending, with steady gains in its financial performance.

13. Motherson Wiring (₹60.92)

• Business Model: A division of Motherson Group, focusing on customized wiring solutions for the automotive industry.
• Recent Developments: Expansion into electric vehicle-compatible systems.
• Competitive Advantage: A strong R&D foundation and a robust client base.
• Potential Risks: Dependency on the cyclical automotive sector.

• Dividend Yield: 1.31%
• Market Cap: ₹26,933 crore
• Sector Niche: A leading player in automotive wiring harness solutions.

14. Equitas Small Finance Bank (₹64.98)

• Business Model: Specializes in loans for MSMEs (Micro, Small, and Medium Enterprises).
• Recent Developments: Grown its branch network across Tier-3 and Tier-4 cities.
• Competitive Advantage: Catering to niche customer profiles within MSME sectors.
• Potential Risks: Impact of industrial slowdowns on creditors.

• Dividend Yield: 1.53%
• Market Cap: ₹7,403 crore
• Key Insight: Significant potential in India’s growing small business financing segment.

15. IDBI Bank (₹78.16)

• Business Model: Operates as a full-service commercial bank, recently privatized to enhance efficiency.
• Recent Developments: Increased focus on retail lending and digitized services.
• Competitive Advantage: New ownership may drive operational improvements.
• Potential Risks: Large exposure to NPAs remains a concern.

• Dividend Yield: 1.90%
• Market Cap: ₹84,040 crore
• Turnaround Story: Recently privatized, it continues to attract attention with its dividend yield.

16. Lloyds Engineering Works (₹79.62)

• Business Model: A metal engineering company known for its projects in industrial infrastructure.
• Recent Developments: Investments in cutting-edge machinery for large-scale projects.
• Potential Risks: Cyclical nature of the heavy industries sector.

• Dividend Yield: 0.25%
• Market Cap: ₹9,253 crore
• Sector Growth: A rising star in the engineering services space.

17. NHPC Ltd. (₹83.63)

• Business Model: Specializes in hydropower generation, focusing on renewable energy sources.
• Recent Developments: Commissioned additional hydropower units to boost capacity.
• Competitive Advantage: Renewable energy sector leadership.
• Potential Risks: Regulatory bottlenecks in approvals for new projects.

• Dividend Yield: 2.23%
• Market Cap: ₹84,006 crore
• Sustainability Focus: A renewable energy leader offering stable dividends.

18. NBCC (₹96.64)

• Business Model: Engaged in real estate development and government construction projects.
• Recent Developments: Won multiple contracts under India’s smart city initiatives.
• Competitive Advantage: Backed by government projects ensuring steady business flow.
• Potential Risks: Delays in government disbursements.

• Dividend Yield: 0.43%
• Market Cap: ₹26,092 crore
• Strength: A major player in construction services, backed by strong government contracts.

19. Jammu & Kashmir Bank (₹100.00)

• Business Model: Regional bank with strong penetration in J&K’s economy.
• Recent Developments: Focused on diversifying its loan book.
• Competitive Advantage: Strategic geographic stronghold.
• Potential Risks: High regional dependence.

• Dividend Yield: 2.15%
• Market Cap: ₹11,011 crore
• Sector Potential: Regional dominance combined with robust quarterly growth (₹552 crore).

20. Canara Bank (₹103.00)

• Dividend Yield: 3.16%
• Market Cap: ₹93,427 crore
• Performance Boost: Double-digit sales and revenue growth.

21. Punjab National Bank (₹103.10)

• Dividend Yield: 1.45%
• Market Cap: ₹1,18,492 crore
• Historic Importance: One of India’s largest public sector banks.

22. Bank of India (₹105.15)

• Dividend Yield: 2.68%
• Market Cap: ₹47,871 crore
• Strong Financials: Quarterly net profits hitting ₹2,421 crore.

23. Paradeep Phosphates (₹111.05)

• Dividend Yield: 0.45%
• Market Cap: ₹9,052 crore
• Agri-Focus: A key supplier in the fertilizer sector.

24. SJVN (₹114.85)

• Dividend Yield: 1.59%
• Market Cap: ₹45,133 crore
• Sustainable Energy: Leader in hydropower and renewable resources.

25. HFCL (₹116.90)

• Dividend Yield: 0.17%
• Market Cap: ₹16,864 crore
• Telecom Boom: A major contributor to India’s 5G infrastructure development.

Final Thoughts

Investing in high dividend penny stocks under 100 INR can be an excellent way to earn stable income while diversifying your portfolio. However, penny stocks also come with risks; thorough research and due diligence are essential to mitigate potential downsides. Whether you’re a seasoned investor or a beginner, the companies listed above represent some of the most compelling dividend-paying stocks in the Indian market under the ₹100 price point. Always consult with financial experts before making any investment decision.