For those looking to diversify their dividends portfolio, here are five small-cap stocks with market caps under $2 billion from the services sector that are currently offering very high yields (at a rate greater than 10 percent), indicating that they could be of particular interest to investors who are currently inclined towards income producing stocks.
It is important to remember that while high dividend yields are certainly attractive, that percentage alone does not automatically make for a smart investment and other financial information should be considered. For instance, a company that offers a high dividend yield should also have enough cash to make good on those payments. As well, it is important to consider a given company’s history of growth, how positive and consistent this growth has been, and is projected to be in the future.
Capital Product Partners LP (CPLP) – The international shipping company specializes in the maritime transport of oil, chemicals, dry goods and containers. With a market cap of $552.16 million, the company is currently offering investors a sizable yield of almost 11.92 percent for shares that are currently trading around $7.75.
Navios Maritime Partners LP (NMM) – Navios is a Greek maritime shipping company that operates dry cargo vessels. With a market cap of $868.36 million, the company is currently paying investors a dividend rate of 13.17 percent on shares that are trading around $13.25.
Grupo Aeroportuario Centro Norte (OMAB) – The Mexican air-services company has a market cap of $1.14 billion, and is yielding 10.37 percent with shares trading at around $26.60. Additionally, analysts currently rate this stock as a “buy or better”.
R.R. Donnelley & Sons Company (RRD) – The American provider of custom integrated communications services has a market cap of $1.77 billion, and is paying out a 10.59-percent dividend with shares trading around $9.96. Analysts are also rating R.R. Donnelley’s shares at “buy or better”.
TAL Education Group (XRS) – The Chinese education and training services company is on the lower end of this list in terms of market cap, at $718.24 million, but its dividend yield is the highest. TAL is currently offering a yield of 21.14 percent on shares trading at $9.38. This stock is the third in this list to be carrying a solid analyst rating of “buy or better”.