New York, New York (PressExposure) February 21, 2012 -- Sasha Cekerevac, co-editor of Penny Stock Detectives, believes that investor sentiment that says penny stocks are not able to make dividend payments is wrong. Cekerevac argues that many penny stocks do make dividend payments and are being overlooked by investors. In a recent Penny Stock Detectives article (click here for the entire article), he gives two examples of stocks that fall into this category.
"Penny stocks make a dividend payment for a variety of reasons. One of these reasons is the positive effect this has on investor sentiment, transmitting information to the market that this penny stock is a well-run firm, as it is able to give back some of the cash from operations to investors in the form of a dividend payment," notes Cekerevac.
Within that universe, Cekerevac believes STMicroelectronics N.V. is an interesting story with significant growth potential. At the current price of $6.73, the forward dividend payment equates to a yield of 4.9%. Not only does the investor receive a dividend payment from this penny stock, but also this independent semiconductor firm makes semiconductor products for a wide variety of industries, such as cars, telecommunication equipment, industrial products, and some consumer products. According to Penny Stock Detectives, on February 8, 2012, the company announced that it had introduced the market's first three-axis digital-output gyroscope. This can be applied for a variety of uses in vehicles, such as GPS devices, in-car navigation, and vehicle tolling computers. This upgrade will essentially improve the mapping capabilities in navigation systems.
"Looking for penny stocks with a dividend payment in diverse sectors makes long-term sense," noted Cekerevac. "At times, a short-term setback can provide an opportunity if negative investor sentiment pushes down a stock more than is warranted."
With this theme in mind, Cekerevac highlighted the fact that QC Holdings, Inc. QC Holdings offers a dividend payment equalling a yield of 5.70%, but has had a setback due to its industry-payday loans-being under scrutiny from government regulators. The Penny Stock Detectives editor says that, if this upcoming oversight by the government is just an additional tax on the earnings of the company, then a long-term investor can still benefit from a healthy dividend payment. However, there is always the possibility of significant changes to the business structure, so more research does need to be conducted before investing.
"Sometimes these short-term setbacks in penny stocks can offer substantial rewards for the long-term investor seeking a strong dividend payment for their portfolio," states Cekerevac.
Published every business day, Penny Stock Detectives, researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10 and the stock market in general.
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The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com.