Market Overview

4 Small-Cap Stocks Yielding Over 5% With Strong Buy Ratings


A simple scan looking for small-cap stocks that are yielding over 5%, have gained at least 10% in 2012 and are rated "Strong Buy" by the majority of analysts covering them turned up four names. The logic behind these metrics was to look for small-caps that may be offering both a very healthy dividend yield as well as potential share appreciation. The scan screened out stocks that were not up at least 10% to avoid selecting any falling knives/trainwreck situations, which are all too common in the small-cap space. A high dividend yield is little consolation if a stock is plunging on a near daily basis. Below, Benzinga highlights the five names that passed the screening metrics.

Chatham Lodging Trust (NASDAQ: CLDT) - This small-cap REIT is very thinly traded and has a market-cap of only $183 million. Year-to-date, CLDT has climbed roughly 21.5%. At current levels, the REIT is yielding a little more than 6%. The security represents an ownership stake in a hotel investment company. The Trust was formed to invest in extended-stay, select-service and full-service hotels.

Crown Crafts, Inc. (NASDAQ: CRWS) - This company operates in the infant and toddler product segment, including bedding, bibs, disposable products, soft goods, and accessories. Shares are up better than 66% in 2012 and the stock is offering up a 5.80% dividend yield at current levels. The stock is thinly traded with a daily average volume of just under 27,000 shares, which could make getting in and out of positions tricky.

Homeowners Choice (NASDAQ: HCII) - This company operates in the property and casualty insurance segment and has a market cap of roughly $93 million. Year-to-date, shares have soared more than 71%, but the stock is currently in a near-term downtrend. On Wednesday, HCII has lost a little more than 9% and was trading at $13.65. At current levels, HCII is yielding around 5.30%. The stock has broken through its 20-day moving average on Wednesday. The 50-day moving average may provide near-term support in the name.

Psychemedics Corp. (NASDAQ: PMD) - This thinly traded stock only has a market cap of just under $53 million and is up 10% in 2012. At current levels, PMD is yielding roughly 6%. The company provides testing services for the detection of abused substances through the analysis of hair samples. The stock has formed a nice base just below the $10.00 level, and a convincing break of $10.00 could propel the stock upward in the coming months.

Posted-In: Long Ideas Dividends Small Cap Analysis Trading Ideas Best of Benzinga


Related Articles (CRWS + CLDT)

View Comments and Join the Discussion!