Investors who prefer to receive income from their stocks likely know of most of the market’s biggest dividend names. When you think of dividend stocks, the usual suspects probably come to mind, such as Exxon Mobil Corporation (NYSE:XOM) or Johnson & Johnson (NYSE:JNJ). Indeed, the large-cap universe holds many of the market’s well-known, successful dividend payers. What you might not know is that many of the market’s smaller publicly traded companies, those with market capitalizations of $2 billion or less, pay dividends too.
One pick for pet lovers
Petmed Express Inc (NASDAQ:PETS) carries a market value of $270 million. The company sells prescription and non-prescription pet medications, health products, and supplies for dogs and cats in the United States. Dividend and value investors alike will find a lot to like about PetMeds. The stock trades for a reasonable trailing price-to-earnings ratio of 17 times and offers a hefty yield greater than 4.25% at recent prices.
PetMed raised its dividend a whopping 20% in February 2012. Investors would be wise to monitor the company’s operating performance going forward, as fiscal 2012 was a difficult year. Sales over the first nine months of the fiscal year dropped 3% year over year. To the company’s credit, PetMeds has an effective management team, with returns on assets and equity both in excess of 20%.
Your own personal dividend ATM
Diebold Incorporated (NYSE:DBD) provides self-service machines to the financial, commercial, and retail markets worldwide. Its products mainly include automated teller machines and check-cashing machines. Diebold Incorporated (NYSE:DBD) has an enviable dividend track record that many companies would love to boast. Earlier this year, Diebold Incorporated (NYSE:DBD) raised its quarterly dividend for the 60th consecutive year. This represents the longest current streak of any publicly traded company in North America.
In fiscal 2012, the company achieved revenue growth of 5.5% year over year. Furthermore, the company’s balance sheet has spots of strength. Diebold Incorporated (NYSE:DBD) has a current ratio of more than 2 times, meaning the company has two times as much short-term assets as short-term liabilities. This allowed Diebold Incorporated (NYSE:DBD) to maintain its impressive dividend streak, and the stock now yields 4%.
An under-the-radar restaurant stock
Within the restaurant industry, you’ve probably heard the investing case for McDonald’s Corporation (NYSE:MCD), but likely not for DineEquity Inc (NYSE:DIN), the parent company of Applebee’s and IHOP. DineEquity Inc (NYSE:DIN) operates 3,600 restaurants in 17 countries across the globe.