Penny stock expert Jim Nelson says that, in addition to offering the largest potential gains of any type of stock, penny stocks also offer investors dividend payments just like blue chip stocks. Here Jim explains how you can turn $5,000 into $151,025.76 in five years using penny stock dividends…

The year was 2003. Fertilizer maker Terra Nitrogen Company (NYSE:TNH) paid a small dividend about 4-5% of its share price, which was only $4.40. Nothing to write home about. But, it was picking up steam.

Just $5,000 would have bought you 1,136 shares. But starting the next year, the company took off. The demand for its products grew sky high, and so did the company’s dividend plan. Those 1,136 shares would have been paid off through the company’s dividends in just two and a half years.

So you would have had free shares of a growing company that pays a tremendous dividend. But here’s where the story gets good. Over the next two and a half years, the company absolutely soared. You would have received dividend checks totaling $20,686.56 with just a $5,000 initial investment a few years before. And it’s still paying dividends to this day.

On top of this, the company’s share price skyrocketed. Shares of Terra Nitrogen went from trading at less than $5 to $110 today. That’s a 2,400% capital gain, which is a complete bonus. After just $5,000 upfront five years ago, you’d be sitting on $151,025.76 right now:

That’s great, but how do you look for this kind of thing? Well, that’s the hard part.

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Read more on Terra Nitrogen Company, Dividends at Wikinvest

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