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5 Soaring Small Caps With 5%-Plus Yield

These five stocks have all beaten the market in the past year — and pay a juicy dividend to boot

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Macquarie Infrastructure

Macquarie185 5 Soaring Small Caps With 5% Plus YieldDividend Yield: 5.1%
12-Month Return: +61%

Macquarie Infrastructure Company (NYSE:MIC) provides “basic services” to a variety of businesses and consumers. It owns natural gas distributors, a 50% interest in a bulk LNG storage terminal, airport service businesses, solar power generation facilities … you name it.

This makes MIC quite an interesting play, because its business is very much diversified. Utilities like this — because that’s essentially what Macquarie is at its core — are very popular with income investors because of their stable revenue stream. But Macquarie continues to find new areas to grow into.

That’s why the company has grown the top line like clockwork since 2009 in the face of a rough market for energy commodities like natural gas. MIC revenue in FY2009 was $710 million, but topped the $1 billion mark in FY2012 for a more than 40% increase just three years later.

Here’s another bullish sign: Just weeks ago, CEO James Hooke bought 13,327 shares of MIC stock at $51.13 per share for a total buy-in of $681,409. When a top executive dishes out that much money amid the stock nearing a 52-week high, that tells you something.

Macquarie doesn’t have a long dividend history but just paid 69 cents last quarter. If you’d rather take the more conservative yield based on the last four consecutive payouts, MIC still has a yield north of 4%. Either way, there’s income as well as growth here.

Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.


Article printed from InvestorPlace Media, http://investorplace.com/2013/04/5-soaring-small-caps-with-5-plus-yield/.

©2014 InvestorPlace Media, LLC

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