4 Stellar Dividend-Paying Penny Stocks

Although volatility has been trending downwards, investors must still maintain a diversified portfolio that should include some income-generating dividend penny stocks

SmallCapPower | June 3, 2016: Equity investors should always aim to maintain a diversified and relatively balanced portfolio. That means including dividend stocks, as well as stocks that are poised for growth. During times of increased uncertainty, investors can mitigate risk by having a steady income stream from dividend stocks. While a portion of their portfolio depreciates in value, the investor can still receive cash flow. An economic downturn, however, could cause a company to cut its dividend payout. For that reason, we suggest investors look at these TSX-listed dividend penny stocks that have a relatively low debt-equity ratio.

Horizon North Logistics Inc. (TSE:HNL) – $1.66
Hotels, Motels & Temporary Housing

Horizon North Logistics Inc. (Horizon North) is a Canada-based remote resource development service company. The Company provides workforce accommodation solutions, camp management and catering services, and road and access matting solutions. The Company’s segments include Camps & Catering, Matting and Corporate. It also provides remote power and energy generation systems, and portable and permanent modular structures.

• Market Cap: 220,127,040.66
• Revenue: 313,830,000
• Dividend Yield: 19%
• Debt to Equity (%): 17%

Essential Energy Services Ltd. (TSE:ESN) – $0.58
Oil Related Services and Equipment

Essential Energy Services Ltd. provides oilfield services to oil and gas exploration and production companies in Western Canada. The Company operates through two segments: Well Servicing, and Downhole Tools & Rentals.

• Market Cap: 72,985,419.40
• Revenue: 145,209,000
• Dividend Yield: 13%
• Debt to Equity (%): 10%

Strad Energy Services Ltd. (TSE:SDY) – $1.64
Oil Related Services and Equipment

Strad Energy Services Ltd. is engaged in providing a range of well-site and energy infrastructure solutions, including Surface Equipment, Environmental and Access Matting, Solids Control and Waste Management, EcoPond (frac-water storage), Drill Pipe and Matting Manufacturing. Its commodity exposure includes conventional and unconventional oil, liquids rich natural gas, and dry natural gas, as well as exposure to Energy Infrastructure projects related to oil sands, pipelines and power transmission. The Company provides energy services and solutions to various sectors of the North American oil and gas industry.

• Market Cap: 215,285,203.21
• Revenue: 92,436,000
• Dividend Yield: 13%
• Debt to Equity (%): 14%

TransGlobe Energy Corp. (TSE:TGL) – $2.22
Oil & Gas Exploration and Production

TransGlobe Energy Corporation is an oil exploration and production company. Its activities are concentrated in the Arab Republic of Egypt (Egypt). The Company conducts its operations through the Arab Republic of Egypt segment. The Company is engaged primarily in oil exploration, development, production and the acquisition of properties. TransGlobe holds interests in various production sharing concessions (PSC) in Eastern Desert Egypt and Western Desert Egypt.

• Market Cap: 114,570,744.63
• Revenue: 104,496,560.5
• Dividend Yield: 10%
• Debt to Equity (%): 17%

DISCLAIMER
The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. The Reader should apply his/her own judgment in making any use of any Content, including, without limitation, the use of any information contained therein as the basis for any conclusions. The Reader bears responsibility for his/her own investment research and decisions. Before making any investment decision, it is strongly recommended that you seek outside advice from a qualified investment advisor. SmallCapPower/Ubika Research does not provide or guarantee any financial, legal, tax, or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security, or information source.