Compass Diversified Holdings (NYSE:CODI) — This business development company acquires controlling interests in and manages small-cap businesses. Analysts look for earnings of $1.48 this year and $1.62 in 2013.
It pays a dividend of $1.44 for a current yield of 10%. A Q2 distribution of 36 cents was declared on July 10. Analysts estimate that the net asset value (NAV) of CODI is $17.04.
Technically the stock is trading in the upper portion of its trading pattern, which is a right triangle with support at $12.50 and resistance at $14.80. The stock has been under heavy accumulation, and the 20-day moving average crossing up and through the 50-day and 200-day moving averages is a short-term buy signal.
The high dividend supports buying a half position now and a full position on a pullback to $13.40 or a breakout through $15. The trading target for CODI is $18.