When a stock pays a dividend, every month, or every quarter, the company sends shareholders a check. Even if the stock hasnt budged one red cent you get paid! And collecting a check is always a good thing. Now a word of warning . Just because a penny stock pays a dividend doesnt make it safe or special. Penny stocks that pay dividends represent assets that actually produce monthly income that can be reinvested later into promising penny stocks. Receiving dividends for penny stocks is a great way to grow your portfolio and cut down on penny stock risks. Just because a penny stock is paying dividends does not meet that it is a good investment. As penny stocks are low-priced equities, chances of dividends are low. Unsurprisingly, there are very few penny stocks that provide investors with a dividend. People go for 2 types of penny stocks: penny stocks trading less than $5 and ones that trade less than $1.