2 penny stocks (including a 5.2% dividend yield) to buy after recent falls!

Could this UK dividend stock be one of the best penny stocks to buy today? Here’s why I’d buy it alongside this top hydrogen stock.

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I’m searching for the best penny stocks to buy following recent share price falls. Here are two top low-cost shares on my radar right now.

AFC Energy

Fuel cell producer AFC Energy (LSE: AFC) has been steadily rising in recent months. But it remains a good 20% cheaper than it was at the beginning of 2022.

I think this represents a great dip-buying opportunity. I think the ‘green’ hydrogen fuel cells it manufactures could prove essential in helping governments to hit their net zero targets.

On the downside, the high cost of green hydrogen means that its commercial viability is yet to be proven. This leaves a big question mark over AFC Energy’s investment case.

However, if I’m brave enough to invest, I believe this penny stock could be a highly-lucrative buy. Demand for renewable energy is soaring as the fight against climate change intensifies. And green hydrogen — which unlike other types isn’t produced with the use of fossil fuels — is the cleanest out there.

Bursting with energy

I’m particularly encouraged by reports that the UK government is set to double its hydrogen production targets later this week. It’s thought that up to 5GW of green hydrogen in particular is being targeted by 2030.

I think interest in this low-carbon source could be about to ignite elsewhere too. And AFC Energy — which is showcasing its tech in the high-profile Extreme E racing series — could be a big winner.

Centamin

Gold stock Centamin’s (LSE: CEY) share price has cooled considerably during the past month. I believe its move back into penny stock territory represents another terrific dip-buying opportunity.

It’s my opinion that the precious metal it mines could rise rapidly in the months ahead as inflation takes off. Prices were already increasingly rapidly into the beginning of 2022. The worsening Covid-19 outbreak in China and the war in Ukraine have kept — and look set to keep — pushing inflation through the roof.

Rising prices are a natural inflator for gold demand. And resurgent physical gold sales at the US Mint illustrate how strongly interest in the safe-haven asset is improving. Some 155,550 ounces of its American Eagle coins were sold in March, up 74% month-on-month.

5.2% dividend yields!

I like gold stock Centamin in particular because of its solid all-round value. The Egypt-focused miner trades on an undemanding forward price-to-earnings (P/E) ratio of 12.9 times. It also sports a meaty 5.2% dividend yield.

There’s no guarantee that gold prices will go up, of course. Rapid central bank rate hikes to curb inflation, for example, and a subsequent lift in the US dollar could hit bullion values hard, and by extension profits at the likes of Centamin.

But on balance I think the outlook for gold prices is very bright. So I’d buy the metal producer to ride this theme.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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