When investors think of dividend-paying stocks, they generally think of older, more established, larger companies. But income investors can find yields — and value — by looking for small stocks to buy as well. Indeed, some of the best small-cap stocks are dividend payers.
And because these stocks generally don’t get the same amount of attention as their larger peers, these small-cap plays can often be found for a better value.
Here are three small-cap stocks to buy that offer dividends and potential for strong long-term returns. All three are among the best small-cap stocks and offer above-market income as well.
Top 10 Insurance Stocks To Buy Right Now: Two River Bancorp(TRCB)
Two River Bancorp a state-chartered commercial bank engaged in commercial and retail banking in New Jersey. The company is coming off a record quarter in terms of net income and earnings per share, which has helped its outlook improve and lifted the stock to a Zacks Rank #2 (Buy). For a regional bank, this is a hot growth option, with earnings and revenue expected to improve by 36% and 12%, respectively, in 2018. Meanwhile, shares are trading at just 13.5x forward 12-month earnings.
Top 10 Insurance Stocks To Buy Right Now: Tuesday Morning Corp.(TUES)
Dallas-based Tuesday Morning Corporation (NASDAQ:TUES) has become one of many retailers which have struggled to stay profitable in a changing retail environment. Founded in 1974, the company expanded across the country, operating in 41 states by 2001. During the past few years, the company has been plagued by high turnover in its top management and struggled to remain profitable.
Still, the company operates 724 stores across the U.S., which by itself should make it one of the hot penny stocks. Moreover, revenue grew by 10% in its latest quarterly report. Comparable store sales rose by 9.1% in Q1 as well. Investors should also note that the company relocated 58 stores in the last 12 months. At those stores, sales grew by 65%. This latest report held many encouraging signs for the company.
However, given that analysts expect net losses for both the current year and the year after, investors should still treat this stock as speculative.
Still, a stock price in the $3.30 per share range and a market cap of about $140 million seems low for a company with 724 stores. Traders should also keep in mind that this stock traded at over $22 per share in late 2014. If management can maintain revenue increases and return TUES stock to profitability, those who buy now could enjoy outsized gains from a dramatic comeback.
Top 10 Insurance Stocks To Buy Right Now: Oritani Financial Corp.(ORIT)
Unlike most bank stocks with high dividend yields, Oritani Financial Corp (NASDAQ:ORIT) exhibits some degree of growth. The commercial bank, which is based in Washington, New Jersey, saw its stock price fall to a 2009 low of $6.37 per share. Now trading around $16.40 per share, both its stock price and its dividend saw huge increases as the stock emerged from the depths of the financial crisis.
Those who bought near the 2009 low and held have also enjoyed massive dividend growth. The annual dividend in 2009 stood at 18 cents per share. By 2015, that dividend had grown to $1.20 per share. Though current conditions have forced the current annual dividend down to $1 per share, investors have still enjoyed both stock price and dividend growth over time.
In the near term, it appears most of the benefits will come from the dividend. If the 2018 earnings projection of $1.11 per share holds, that places the forward PE at around 14.5. Hence the stock trades near its average multiple. With 2019 profits expected to come in at $1.13 per share, the stock lacks the catalyst to energize growth.
However, some ORIT stock investors may want only the 5.2% dividend. Buyers who have time to wait on stock growth still should do well. Hence, investors wanting a high dividend and long-term growth should receive both from ORIT if they can exercise patience.
Top 10 Insurance Stocks To Buy Right Now: Mid-Con Energy Partners, LP(MCEP)
Tulsa-based Mid-Con Energy Partners LP (NASDAQ:MCEP) is an upstream oil and natural gas producer. As an exploration and production company, times are great when oil prices are high. However, in an environment of low prices, revenue generation becomes a struggle.
Fortunately for MCEP stock, crude oil now trades in the $70-per-barrel range, its highest price since 2014.
MCEP stock traded as high as $27 per share in 2013. The oil price slump of 2014-16 hit its interests hard. By 2016, MCEP had become a penny stock, trading as low as 73 cents per share at one point. The stock has struggled to gain traction since then, but now trades in the $1.75-per-share range.
However, company financials may have begun a turnaround. Revenue fell from $96.91 million in 2014 to $56.1 million by 2016. Although revenues rose to $58.93 million in 2017, analysts estimate revenues will remain below $60 million for both 2018 and 2019.
Whether those estimates factor in higher crude prices remains unclear. And at these levels, investors should still consider MCEP stock speculative. However, the stock remained consistently above $20 per share while oil traded above $100 per barrel. If oil can continue to climb higher, perhaps MCEP stock will return to 2013 levels and become one of the hot penny stocks.
Top 10 Insurance Stocks To Buy Right Now: Intuitive Surgical Inc.(ISRG)
Intuitive Surgical (NASDAQ:ISRG) is in a business that sounds like it comes straight from a science-fiction novel: Surgical robotics.
However, luckily for patients around the world, this revolutionary technology is not only possible, it is becoming more and more integrated into everyday hospital use.
Intuitive Surgical got its big break in 1999 when it introduced the da Vinci surgical system. Complete with a surgeon’s console, a patient-side cart, a 3-D vision system and wrist instruments, this system allows doctors to perform minimally invasive surgery with enhanced dexterity, precision and control.
In the end, this technology benefits the patients, who usually experience less pain, a shortened hospital stay, fewer infections and less scarring.
Nearly 20 years later, the company has developed several models of this surgical system and even offers a training program that brings surgeons up to speed on this technology.
This system has steadily caught on in the healthcare industry; last year alone, the company’s systems were used in 650,000 procedures around the world.
ISRG stock is up more than 30% so far this year, but that is still just the beginning for this next generation healthcare company.