10 Top Penny Stocks for 2016

Penny stocks to watch 2016Penny Stock: The 10 Top Stocks Under $5 in 2016

The economic outlook for the New Year looks bleak as the Fed’s unpredictable monetary policy and the global economic crises continue to spell trouble for investors at home. Throughout this year and particularly in the last quarter, markets have oscillated up and down, indicating a frenzied investor behavior. Such volatility can open short-lived buying opportunities for penny stock investors in 2016.

Penny stocks are volatile investments that are more often sold than bought, and thus usually trade lower. It’s noteworthy that what might seem like a low-price entry point may actually be too high for the stock. When looking for the right penny stocks, avoid falling for a penny stock trader’s dubious investment pitch. Instead look for stocks with solid financials and having operations in sectors with positive growth prospects.

Ideally, penny stocks trade under $5.00. But to include some cheap but seemingly profitable investments, I’ve picked a few trading under $10.00 as well.

Check out my top ten penny stock picks for 2016 below.

Nevsun Resources Ltd. (NYSEMKT:NSU)

Market Cap: $609 Million, EPS: $0.35, Dividend Yield: 5.19%

Headquartered in Vancouver, Canada, Nevsun Resources Ltd. (NYSEMKT:NSU) operates in the Basic Materials sector involved in the exploration and development of mineral properties in Africa, including gold, silver, copper and zinc. Included in its portfolio is one of the highest grade open pit copper mines, Bisha. The NSU stock had a tough time this year because of lower commodity prices but is expected to regain footing as prices are starting to rebound. Nevsun has still managed to deliver positive EPS quarter after quarter and also boasts a 5.19% dividend yield, making it a great penny stock for value investors.