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3 Small-Cap Stocks With Serious Yields

Traditionally a hunting ground for growth, some small caps provide sturdy dividends instead

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New Jersey Resources

New Jersey Resources Stock NYSE:NJRMarket Cap: $1.81 billion
Dividend Yield: 3.8%

Energy services holding company New Jersey Resources (NJR) is actually a conglomeration of a number of utility-like operations such as New Jersey Natural Gas and NJR Energy Holdings that provides retail and wholesale energy from the Gulf Coast to the Northeast.

Both top- and bottom-line figures for New Jersey Resources have fluctuated a bit as energy prices have bounced around, and in particular NJR was hit hard in 2012 as a result of catastrophic damage to NJR’s distribution systems during Hurricane Sandy. NJR was forced to shut down service throughout a wide swath of its customer base for several months, affecting revenues, and took additional expenses as it repaired damaged equipment.

Even though NJR took a huge hit in cash flow thanks to capex spending in 2012, it still raised its dividend yet again this year to 42 cents per quarter — representing a 35% improvement in the past five years.

That dedication to improving its payout amid a large-scale disaster speaks volumes about the dividend at New Jersey Resources. Yes, NJR still remains a risk because of its relatively small size, but the dividend is about as sturdy as they come.

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