Small-Cap Stocks to Buy: Dorchester Minerals (DMLP)
Dorchester Minerals LP (NASDAQ:DMLP) is basically the landlord on a lot of shale properties that produce oil and natural gas. It’s not an exploration and production company (E&P) firm, but leases its lands to E&P firms and gets a royalty off their production.
It’s a unique beast in the U.S. energy patch. And its business rises and falls with energy demand and energy prices. That means, it has been lean times for DMLP for the past couple years. But times have changed, as its recent first-quarter earnings report reveals.
Revenue was up 107% year-over-year and net income nearly quadrupled.
And since DMLP is set up as a limited partnership, it treats shareholders as direct owners and distributes its profits as dividends. Right now, the stock is delivering a 6.4% dividend, which will make up for a fair amount of volatility in the sector.