Market Overview

3 Small Cap Companies That Have Big Dividends Approaching

Related HRZN
UPDATE: Wunderlich Securities Downgrades Horizon Technology Finance As Smaller Portfolio Is Unlikely To Cover Dividend
Horizon Technology Finance (HRZN) is now in Oversold Territory - Tale of the Tape

Small cap companies that pay a significant dividend are few and far between.

These companies have an ex date (the date by which you need to own the company to receive the dividend) in June, and an annual dividend yield hovering around 10 percent. To help ensure quality, both revenue and earnings are growing.

As both small caps and dividend payers, the stocks in this list can help diversify portfolios in two often ignored ways.

Horizon Technology Finance (NASDAQ: HRZN)

Horizon provides capital to development stage technology, life science, healthcare information and cleantech industries. Loans and warrant purchases are often made in companies backed with venture capital or private equity funds, and can include publicly-traded firms. One advantage of providing debt to these companies is that Horizon is repaid before the private equity firm gets its payout.

Related Link: Think Small Banks For Big Profits

The company’s annual yield is 11.58 percent. The upcoming ex date for the monthly dividend is June 16, the record date is June 18 and the dividend will be paid on July 17. Shares of Horizon Technology were last trading at $13.92.

PennantPark Investment Corp (NASDAQ: PNNT)

PennantPark generates income with debt and equity investments in the United States middle market. PennantPark looks for companies that are highly leveraged and and have unrated debt. The company has an experienced management team, averaging over 25 years of experience in the industry.

The annual dividend yield is 10 percent. The upcoming ex date is June 17, the record date is June 19, and payment of the $0.28 dividend will be on July 1. Shares ended Thursday at $11.20.

Stellus Capital Investment Corp (NYSE: SCM)

Similar to PennantPark, Stellus Capital invests in middle market companies with debt and equity. The companies Stellus invests in usually carry a lot of debt that would be rated junk status if it were covered. Some of the sectors Stellus invests in include business services, energy, industrial, government services, healthcare, software and specialty finance.

Stellus currently pays a 9.47 percent annual dividend. The ex dividend date is June 26, the record date is June 30 and the $0.1133 monthly dividend will be paid on July 15. Shares of Stellus closed at $14.36 Thursday.

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