The Best Small Capitalized Dividend Growth Stocks To Invest In

by Dividend Yield
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Submitted by Dividend Yield as part of our contributors program.

Small cap stocks with a strong growth and best dividends to buy, originally published at “long-term-investments.blogspot.com“. Everybody loves growth. If you own an investment and it starts to grow by double-digit rates over a few years, when the stock price explode and you feel like a bird in heaven. I felt a few times like this. But it is also necessary that you sell partly your position over the time. I personally reduce my stocks positions when they have doubled or more. Certainly you can’t get very rich with this rule but you hedge your stock gains and believe me by selling stocks with gains, nobody become poor.

I recently viewed a nice list at Forbes. The list was a research result of the 100 best small cap growth stocks in America. Stocks from the table are public and tradeable in America. They all have a total sales volume below the USD 1 billion mark and fantastic years of recent growth. As you can see at the list, the GDP growth is America is still weak but out there are still investment opportunities to discover.

I discovered the ten best dividend stocks from the small cap growth picks. I needed to screen more than 50 companies in order to find ten stocks with positive dividend payments. As you can see most of the small cap growth stocks don’t pay dividends. But the debt situation is very comfortable. Most of them are free of debt and have bigger cash amounts to their balance sheets in order to finance future growth. The average stock grew in sales by 19 percent yearly. Earnings followd by 31 percent growth yearly and the average return on equity amounted to 20 percent. See the full list of the 100 best small cap growth stocks at the end of this post.

Here are the three best yielding stocks:

Strayer Education (STRA) has a market capitalization of $561.72 million. The company employs 2,140 people, generates revenue of $627.43 million and has a net income of $106.04 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $200.67 million. The EBITDA margin is 31.98 percent (the operating margin is 28.55 percent and the net profit margin 16.90 percent).

Financial Analysis: The total debt represents 50.84 percent of the company’s assets and the total debt in relation to the equity amounts to 277.82 percent. Due to the financial situation, a return on equity of 97.16 percent was realized. Twelve trailing months earnings per share reached a value of $6.60. Last fiscal year, the company paid $4.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.17, the P/S ratio is 0.90 and the P/B ratio is finally 13.19. The dividend yield amounts to 8.45 percent and the beta ratio has a value of 0.73.

Quality Systems (QSII) has a market capitalization of $1.08 billion. The company employs 1,908 people, generates revenue of $429.84 million and has a net income of $75.66 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $134.15 million. The EBITDA margin is 31.21 percent (the operating margin is 27.03 percent and the net profit margin 17.60 percent).

Financial Analysis: The total debt represents 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 29.11 percent was realized. Twelve trailing months earnings per share reached a value of $1.14. Last fiscal year, the company paid $0.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.94, the P/S ratio is 2.50 and the P/B ratio is finally 3.63. The dividend yield amounts to 3.86 percent and the beta ratio has a value of 0.70.

FutureFuel (FF) has a market capitalization of $485.17 million. The company employs 500 people, generates revenue of $309.88 million and has a net income of $34.51 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $60.81 million. The EBITDA margin is 19.62 percent (the operating margin is 16.66 percent and the net profit margin 11.14 percent).

Financial Analysis: The total debt represents 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 12.77 percent was realized. Twelve trailing months earnings per share reached a value of $0.93. Last fiscal year, the company paid $0.30 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.56, the P/S ratio is 1.57 and the P/B ratio is finally 1.68. The dividend yield amounts to 3.41 percent and the beta ratio has a value of 0.54.

Take a closer look at the full table of the ten best yielding small cap growth stocks. The average P/E ratio amounts to 22.64 and forward P/E ratio is 17.02. The dividend yield has a value of 2.68 percent. Price to book ratio is 5.03 and price to sales ratio 4.42. The operating margin amounts to 29.98 percent. The average stock has a debt to equity ratio of 0.17.

Selected Articles:
· 23 Dividend Growth Stocks With Highest Growth And Strongest Buy Recommendation
· 9 Solid Dividend Stocks From The Technology Sector | High Growth With Great Dividends
· 50 Top Stocks With The Highest Dividend Growth In October 2012
· The 10 Best Growth Investments – Low Dividends, High Growth And Return

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