Today's screen looks for stocks under 5 dollars with small market share that also pay dividends.
An offshoot of slowly rising interest rates has been a depression in the value of large cap dividend stocks. Historically stable investments favored by more conservative, long-term investors – many of the dividend stocks with the highest pay-outs have declined in value recently.
One reason for this is a growing economy. As tapering begins and interest rates start to rise, the dividend stocks which were once so attractive to careful investors will start seeing more competition from other fixed-income securities. Bonds, many of which lost value in 2013 as the stock market soared, are once again becoming a more viable alternative for less speculative investments.
The take-away is much more complicated than "avoid these companies." In addition to a market which expects higher-yielding bonds next year, many of the industries with the highest dividend payouts, in particular real estate investment trusts (REITs), have benefitted immensely from easy liquidity and low interest rates. Dividends are still a valuable indicator of a company growing profits and rewarding shareholders.
But now choosing dividend stocks is a little trickier. The thing to look for is companies that seem poised to increase dividends as they grow – and the savviest income investors are looking for plays that have leverage on the economic recovery.
We decided to look for potential growth stocks that are already paying dividends. Whether they can leverage the recovery is impossible to know for sure – but the market certainly has high expectations for some of these companies. One stock on our list, Greek maritime shipping company Navios Maritime (NNA) has projected EPS growth next year of over 2000%.
We were left with five small cap dividend stocks to consider.
Click on the interactive chart to view analyst ratings over time.
Do you see any investing opportunities in these small cap dividend stocks? Use the list below to begin your analysis.
4. Coffee Holding Co. Inc. (JVA, Earnings, Analysts, Financials): Engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States and Canada. Market cap at $31.54, most recent closing price at $4.79.
(List compiled by James Dennin. Analyst ratings sourced from Zacks Invesment Research, all other data sourced from Finviz.)
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
- ATA, Inc.(ATAI, Chart, Download SEC Filings)
- DRD Gold Ltd.(DRD, Chart, Download SEC Filings)
- US Global Investors Inc. (GROW, Chart, Download SEC Filings)
- Coffee Holding Co. Inc. (JVA, Chart, Download SEC Filings)
- Navios Maritime Acquisition Corporation(NNA, Chart, Download SEC Filings)
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