Some investors are looking for high yield dividend stocks right now as the broad markets are see-sawing around. Other stock market investors are buying small cap stocks in anticipation of the recovery. But if you think your investing strategy has to fall either on the defensive side of high dividends or the aggressive side of small cap stock investments, think again! There are some small cap stocks out there right now that are also high-yield dividend stocks.
Granted, some of these small cap stocks may be companies you’ve never heard of. But the high dividend yields may make it worth your while to take a second look.
Here are nine small cap stocks you may have never heard of, but these high-yield dividend investments could be a good fit for your portfolio.
K-Sea Transportation Partners (KSP)
Market Cap: $105.6 million
Annualized Dividend Yield: 32.6%
K-Sea Transportation (NYSE: KSP) provides oil tanker shipping services in the U.S., operating about 70 tank barges and 66 tugboats. Though the company has not paid a dividend since November of 2009, the company’s annualized dividend yield of 30% is certainly worth a look. If K-Sea resumes payments of its 45 cent dividend then investors will get back almost a third of their initial buy in back via dividends. That may be wishful thinking, but aggressive traders should take note.
Resource Capital Corp. (RSO)
Market Cap: $232.3 million
Annualized Dividend Yield: 17.8%
Resource Capital Corp. (NYSE: RSO) operates as a specialty finance company that focuses primarily on commercial real estate and commercial finance in the United States. While these may be troubling times for commercial real estate and finance, the 25 cents per quarter RSO stock has been handing out might be enough to keep some investors interested. Offering a 17% annual dividend yield creates a tempting lure that some investors might not be able to pass up.
Kohlberg Capital Corp. (KCAP)
Market Cap: $107.3 million
Annualized Dividend Yield: 14.3%
Kohlberg Capital Corporation (NASDAQ: KCAP) is a private equity and venture capital firm specializing in buyouts and mezzanine investments. It focuses on mature and middle market companies and has already announced it will again pay investors a quarterly dividend of 17 cents per share on July 29, 2010. The hefty 14% annualized dividend yield collected by shareholders makes Kohlberg another small cap stock that could get potential dividend investors excited at a fair value price.
Whiting USA Trust I (WHX)
Market Cap: $272.4 million
Annualized Dividend Yield: 14.3%
Whiting USA Trust I (NYSE: WHX) was formed by Whiting Petroleum Corp., which has contributed a term net profits interest in oil and natural gas properties to the trust in exchange for trust units. Having raised its dividends for the past three consecutive quarters, paying investors as recently as May 28 of this year, Whiting is a noteworthy mention for its 14.3% annualized dividend yield. For a small-cap stock, WHX may get some attention if it keeps up its $2.58 annual rate per share dividend in the future.
NorthStar Reality Finance Corp. (NRF)
Market Cap: $233.3 million
Annualized Dividend Yield: 12.9%
NorthStar Realty Finance Corp. (NYSE: NRF), a real estate investment trust, focuses primarily on originating and acquiring commercial real estate debt, commercial real estate securities and net lease properties. NorthStar has been in the news recently with its acquisition of a $1.1 billion CDO from an affiliate of CapitalSource Inc. Even though technical indicators show a bearish performance in the past two months, faithful shareholders have enjoyed regular dividend payments that round out to an annualized yield of 12.9%.
Walter Investment Management (WAC)
Market Cap: $448.1 million
Annualized Dividend Yield: 11.5%
Walter Investment Management Corp. (AMEX: WAC), a real estate investment trust (REIT), operates as a mortgage portfolio owner and mortgage servicer, specializing in sub prime, non-conforming, and other credit challenged residential loans primarily in the southeastern United States. Walter is currently paying a $2.00 annual dividend to its investors, roughly a 11.5% yield. Since the company has elected to be taxed as a real estate investment trust, it is not subject to corporate income tax on that portion of its net income that is distributed to shareholders. What this means for future dividends, time will tell.
Eaton Vance Tax-Managed Buy-Write Income Fund (ETB)
Market Cap: $360 million
Annualized Dividend Yield: 12.3%
Eaton Vance Tax-Managed Buy-Write Income Fund (NYSE: ETB) is a diversified, closed-end management investment company. It mainly invests in a portfolio of common stocks that seeks to exceed the total return performance of the S&P 500. Boasting a $1.80 dividend rate and 12% annualized dividend yield, income-hungry investors might like this stock for its potential to return on investments in a healthy way.
Teekay Tankers Ltd (TNK)
Market Cap: $551.5 million
Annualized Dividend Yield: 9.8%
Teekay Tankers Ltd. (NYSE: TNK), through its subsidiaries, engages in the ownership and operation of oil tankers. As of March 1, 2010, the company’s fleet consisted of nine Aframax-class oil tankers and three Suezmax-class oil tankers — not to mention a 9.8% annualized dividend yield for investors. TNK stock dividends have already been increased in 2010, with dividend payments of 37 cents for the quarter ending May 28 of this year, up from the 26 cents paid the previous quarter. What the future will hold for the tanker company is unclear, but it might be worth keeping an eye on its dividend payments to come.
General Maritime Corp. (GMR)
Market Cap: $541.4 million
Annualized Dividend Yield: 8.8%
General Maritime Corp. (NYSE: GMR) is a leading international crude oil shipper that owns and operates 31 tankers focused mostly in the Atlantic basin. GMR paid out investors their most recent dividend on May 28, 2010 at a rate matching an 8.8% annualized dividend yield. If General Maritime decides to continue rewarding investors with its 50 cent yearly rate of return per share, then this small-cap stock might be find itself on the radar of enterprising investors.
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