a dividend is a prize given to shareholders for investing in Otc Markets. Otc Markets' board of directors can pay out dividends at a planned frequency, such as monthly or quarterly.

Typically, penny stocks do not pay dividends since penny stock companies tend to either be small companies with little revenue or larger companies that are undergoing financial hardship. However, there are a few that offer dividends, and investing in dividend-paying penny stocks can reduce the overall risk exposure of a penny stock portfolio.