In this article, we discuss 5 best micro-cap dividend stocks to buy now. If you want to read our detailed analysis of dividend companies and their performance, go directly to read 11 Best Micro Cap Dividend Stocks To Buy Now.
5. Evolution Petroleum Corporation (NYSE:EPM)
Dividend Yield as of November 30: 6.50%
Evolution Petroleum Corporation (NYSE:EPM) is a Texas-based independent energy company that invests in onshore oil and natural gas properties in the US. In November, Roth upgraded the stock to Buy with a $9.50 price target, appreciating the company’s business model, strong dividends, and balance sheet.
On November 8, Evolution Petroleum Corporation (NYSE:EPM) declared a quarterly dividend of $0.12 per share, in line with its previous dividend. The company has raised its dividends twice this year, which makes it one of the best dividend stocks on our list. As of November 30, the stock has a yield of 6.50%. The company has been making consecutive dividend payments for the past 37 quarters.
In the third quarter of 2022, Evolution Petroleum Corporation (NYSE:EPM) reported revenue of $39.7 million, which showed a 110.3% growth from the same period last year. At the end of September, the company had over $10.7 million available in cash and cash equivalents, up from $8.2 million three months ago.
At the end of Q3 2022, 16 hedge funds tracked by Insider Monkey owned stakes in Evolution Petroleum Corporation (NYSE:EPM), up from 13 in the previous quarter. The collective value of these stakes is over $22.4 million. With 1.7 million shares, Renaissance Technologies was the company’s largest stakeholder in Q3.
Steel City Capital mentioned Evolution Petroleum Corporation (NYSE:EPM) in its Q1 2022 investor letter. Here is what the firm has to say:
“Evolution Petroleum Corporation (NYSE: EPM): EPM is a small oil & gas company that owns a portfolio of diversified oil, natural gas, and NGL producing properties. EPM is atypical in the sense that it specifically focuses on non-operating working & revenue interests of producing assets that are in the twilight years of their lives. These assets require fairly minimal capital and have steady, predictable production profiles. Historically, EPM was a less attractive single-asset business, owning only a 23.9%/26.2% working/revenue interest in Denbury’s Delhi field, which is predominantly an oil asset. In recent years, however, management has meaningfully diversified, adding a total of four additional production assets to its portfolio. Pro-forma for its most recent acquisitions, EPM’s production mix is 43% oil, 40% natural gas, and 17% NGL. One of the more important factors that attracted me to EPM was management’s philosophy to operate an unhedged book1 . I subscribe to the school of thought that 1) years of underinvestment in upstream projects has resulted in a structural supply deficit that should be supportive of pricing for some time and 2) commodity exposure is an important hedge against rising inflation. Shares trade at an EV/EBITDA multiple in the mid-2x range and offer a mid-single-digit dividend yield.”
Hedge Fund Resource Center