3 Small Caps Offering Big Dividends
NEW YORK (TheStreet) -- Just because big dividends are not commonly associated with small cap stocks does not mean that is always the case. There are many small cap stocks with dividends more than twice the average of 1.9% for a member of the Standard & Poor's 500 Index. Three for long term investors to consider featuring very appealing dividends are Oak Valley Bancorp
Each of these publicly traded companies is profitable with a supportable dividend payout ratio and a high dividend yield that has the potential to grow even more based on cash flow.
Oak Valley Bancorp is a small cap lender in northeastern California. It has a solid balance sheet with no debt and plenty of cash. There is a profit margin of over 20% with the industry average being 0.10%. The return-on-investment is far superior to the industry average, too. Earnings-per-share growth is also bullish: Up 13.10% this year compared with 5.80% for the past five years. For the most recent quarter, consolidated net income hit a record high. Net income for 2013 was up from 2012, too. Oak Valley Bancorp easily has the cash flow to support its present 4.65% dividend yield and raise it in the future with income rising to record amounts.
Momentum investors should appreciate that the share price for Oak Valley Bancorp is up for the last week, month, quarter, six months, and year of market action.