Published on 30 Sep 2024 on Insider Monkey · via Yahoo Finance

Is Entravision Communications Corporation (EVC) the Best Dividend Penny Stock to...

We recently compiled a list titled 10 Best Dividend Penny Stocks to Buy Now. In this article, we will look at where Entravision Communications Corporation (NYSE:EVC) ranks among the best dividend stocks to buy now.

Penny stocks, typically defined as shares trading below $5, present a unique opportunity to investors who wish to buy stocks at “ground floor” prices. Investors usually buy such stocks in hopes of them soaring off. However, even though penny stocks may be low-priced, they do come with a lot of risk. Since such stocks don’t necessarily have to disclose the same type of information as other stocks on established exchanges, are susceptible to “pump and dump” schemes, may have low liquidity, and are often thinly traded, investing in them isn’t for the faint of the heart. For example, in 2018, one stock promoter was convicted for inflating share values by approximately $100 million through such schemes. Nevertheless, investors may often find themselves looking for such cheapest stocks that pay the highest dividends. This strategy is particularly appealing to income-focused investors, especially those who don’t have a lot of capital to invest but are looking for a consistent flow of income.