The Benefits of Lesser-Known Small-Cap Dividend Stocks

By Profit Confidential

Small-Cap Stocks I don’t usually talk about dividend stocks. Now, that’s not to say I don’t favor them; it’s just that my specialty is in small-cap stocks and special situations.

But you cannot ignore the fact that strong dividend-paying companies perform very well over the long term—I mean decades. We are talking about the likes of Colgate-Palmolive Company (NYSE/CL) with a 2.3% yield, and The Procter & Gamble Company (NYSE/PG), with a three-percent yield.

Then there are also the traditional dividend payers—the banks.

Yet in these are pricey stocks for some of you who may be looking for more obscure dividend-paying stocks.

Let’s look at a few that offered above-average dividend flow and capital appreciation.

In the investment management sector, take a look at small-cap Och-Ziff Capital Management Group LLC (NYSE/OZM), which is near its 52-week high and pays an impressive 9.9% dividend yield. The company runs money from pension funds and other areas. In the second quarter, Och-Ziff beat on both revenues, up 16.5% year-over-year to $207.8 million, and earnings, beating the Thomson Financial consensus estimate by $0.02, reporting $0.16 per diluted share. According to the company, its assets under management have increased to $36.6 billion as of June 30, 2013, up 12% from the end of 2012.

Och-Ziff Capital Management Group Chart

Chart courtesy of www.StockCharts.com

 Also in the investment management area, Fortress Investment Group LLC (NYSE/FIG) looks pretty good as reflected by the steady rise in its stock price since June 2012 (as shown in the stock chart below).

The company manages about $54.61 billion in assets under management as of the end of June, up 14% year-over-year. Fortress also pays out dividends of $0.24 annually for a yield of 3.1%.

Article by profitconfidential.com

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