Eight Small Cap Dividend Growth Stocks Warren Buffett Would Love

Submitted by Dividend Yield as part of our contributors program

Eight Small Cap Dividend Growth Stocks Warren Buffett Would Love
Today I’d like to share small-capstocks with businesses that are both understandable and durable, but trade at prices I personally deem too high. All businesses have traits Buffett would love: durable brands, strong competitive positions, and low-cost advantages. If Mr. Market gives me a deal, I’ll be buying shares of each with both hands.

The fascinating thing about low market valuations is that the company can grow at a faster pace because their current market potential seems to be enormous.

The bad thing about those stocks is that they offer a higher risk. However, let’s try the screen and face the facts.

Here are the results:

TransMontaigne Partners — Yield: 6.57%

TransMontaigne Partners (NYSE:TLP) employs 510 people, generates revenue of $150.06 million and has a net income of $32.46 million. The current market capitalization stands at $666.37 million.

TransMontaigne Partners’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $64.01 million. The EBITDA margin is 42.65% (the operating margin is 25.94% and the net profit margin 21.63%).

Financials: The total debt represents 37.95% of TransMontaigne Partners assets and the total debt in relation to the equity amounts to 64.37%. Due to the financial situation, a return on equity of 7.39% was realized by TransMontaigne Partners.

Twelve trailing months earnings per share reached a value of $1.62. Last fiscal year, TransMontaigne Partners paid $2.66 in the form ofdividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.05, the P/S ratio is 4.44 and the P/B ratio is finally 1.96. The dividend yield amounts to 6.57%.

– Read more here: 8 Small Cap Dividend Growth Stocks Warren Buffett Would Love….