These 3 small cap dividend stocks are showing investors the money.
1. American Ecology (ECOL) - I have bought shares of this small cap waste management company in the past for its growth potential but now American Ecology has become a value play. American Ecology has excellent growth prospects over the next five years with a projected 20% growth rate and the company has very little debt. The stock now sports a dividend yield of 4.82%. You can get paid a healthy dividend while waiting for the stock to rise.
2. Brookfield Infrastructure Partners (BIP)-Brookfield Infrastructure Partnership is a limited partnership that was spun off from Brookfield Asset Management in 2008. BIP owns and operates all of the infrastructure assets for Brookfield Asset Management including electricity transmission systems, timberlands and social infrastructure. Brookfield shares are selling for $16.63 and the stock is currently yielding 6.6%.
3. American Software, Inc. (AMSWA)- American Software is a small $100 million dollar company that develops application software that delivers enterprise management solutions. American Software has been profitable for 35 consecutive quarters and the company has no debt. The company is buying back shares which should only help the long term value of the stock. American Software is currently yielding 6.1%.
Pretty good picks.
I’m especially keen on BIP there. The Brookfield structure is complicated and hard to value, so people have been avoiding investing to some extent. Their yield is impressive, and based on recent acquisitions I expect them to grow.
If you like those companies, I highly suggest you take a look at National Presto Industries (NPK). It’s a small-cap ($850 million market cap) that makes appliances, ammo, and absorption products and has had 26% annualized earnings growth and 38% dividend growth over the past 6 years, and currently has a 6.5% dividend yield.
If you look it up on some screeners like Google Finance, you’ll notice that the yield says only 0.9%. NPK has an unusual dividend policy: they pay a $1 dividend once per year (that’s the 0.9%) and then they pay a huge special dividend at the same time annually that depends on previous years profits, and many listings don’t include this number. You can verify it on CNNmoney or their own website. All of this comes with a P/E under 15. Balance sheet is flawless too.
(Disclosure: Long NPK)
I really like BIP. Solid underlying assets. They acquired some great assets from Babcock & Brown.
@Matt @ Dividend Monk
Matt,
I am going to have to check out NPK. That’s a stock that I don’t know too much about.
Thanks.
@Think Dividends
I like BIP too. I found out about it when I owned Brookfield Asset Management.