5 Best Micro-Cap Dividend Stocks To Buy Now

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.”

4. Stellus Capital Investment Corporation (NYSE:SCM)

Dividend Yield as of November 30: 8.17%

Stellus Capital Investment Corporation (NYSE:SCM) is an American credit management company that mainly invests in lower middle market companies. In Q3 2022, the company reported a total investment income of $20.1 million, which showed an 18.3% growth from the prior-year period. At the end of September, the company had over $12.4 million in cash and cash equivalents, and its total assets for the period amounted to $889 million.

Stellus Capital Investment Corporation (NYSE:SCM) currently pays a quarterly dividend of $0.933 per share. In October, the company also announced a special dividend of $0.02 per share, which was the company’s second consecutive supplemental dividend. This makes the company one of the best dividend stocks. As of November 30, the stock has a dividend yield of 8.17%.

Janney Montgomery initiated its coverage of Stellus Capital Investment Corporation (NYSE:SCM) with a Neutral rating. The firm highlighted the company’s acquisitions, growth capital, and leveraged buyouts.

At the end of Q3 2022, Two Sigma Advisors was the only hedge fund owning stakes in Stellus Capital Investment Corporation (NYSE:SCM), worth $996 million.

3. FAT Brands Inc. (NASDAQ:FAT)

Dividend Yield as of November 30: 8.36%

FAT Brands Inc. (NASDAQ:FAT) is a California-based multi-brand restaurant operator that acquires and develops fast casual and casual dining restaurants. The company initiated its dividend policy in 2018 and has raised its payouts twice since then. It currently pays a quarterly dividend of $0.14 per share and has a dividend yield of 8.36%, as of November 30.

In Q3 2022, FAT Brands Inc. (NASDAQ:FAT) reported revenue of $1032. million, up from $29.8 million in the same period last year. In the first nine months of the year, the company’s system-wide same-store sales grew by 7%, compared with a prior-year period. Moreover, it opened 38 new stores during the quarter.

ADW Capital was the only hedge fund owning stakes in FAT Brands Inc. (NASDAQ:FAT) in Q3 2022. The total value of these stakes is over $4.3 million.

2. Cross Timbers Royalty Trust (NYSE:CRT)

Dividend Yield as of November 30: 8.89%

Cross Timbers Royalty Trust (NYSE:CRT) is an express trust that collects and distributes monthly net profits to shareholders. In the second quarter of 2022, the company reported cash and short-term investments worth $2.6 million, up from $1.8 million at the end of December 2021. The company’s net profits income was $3.7 million, compared with $1.7 million from the same period last year. Its distribution to unitholders amounted to $1.6 million, up from $822,744 six months ago.

On November 18, Cross Timbers Royalty Trust (NYSE:CRT) declared an 8% increase in its monthly payout to $0.161 per share. The stock has a dividend yield of 8.89%, as recorded on November 30.

As of the close of Q3 2022, Citadel Investment Group was the only hedge fund owning stakes in Cross Timbers Royalty Trust (NYSE:CRT), worth $216,000.

1. Mesabi Trust (NYSE:MSB)

Dividend Yield as of November 30: 24.9%

Mesabi Trust (NYSE:MSB) is a New York-based royalty trust that operates in the iron ore mining segment. The trust mainly derives its income from an iron ore mine in Minnesota. The company currently pays a quarterly dividend of $0.84 per share and has a dividend yield of 24.9%, as of November 30.

At the end of September 2022, 7 hedge funds in Insider Monkey’s database owned stakes in Mesabi Trust (NYSE:MSB), up from 4 in the previous quarter. The collective value of these stakes is over $81.4 million. With over 2.5 million shares, Horizon Asset Management was the company’s leading stakeholder in Q3.

You can also take a look at 11 Best Canadian Dividend Stocks To Buy Now and 10 Best 5% Dividend Stocks To Buy According To Hedge Funds

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