In this article, we discuss 5 small-cap stocks that pay dividends. If you want to read our detailed discussion of small-cap investing and other small-cap dividend stocks, go directly to read 10 Small-Cap Stocks that Pay Dividends.
5. Ethan Allen Interiors Inc. (NYSE:ETD)
Dividend Yield as of August 17: 4.90%
Ethan Allen Interiors Inc. (NYSE:ETD) is a Connecticut-based furniture chain with about 300 stores located in the US, Canada, the Middle East, and Asia. On August 10, Argus appreciated the company’s investment in virtual-reality software that could help it to grow its revenue. The firm raised its price target on the stock to $30 with a Buy rating on the shares.
In Q2 2022, Ethan Allen Interiors Inc. (NYSE:ETD) reported strong earnings, posting a revenue of $230 million, which beat estimates by $32.1 million and also presented a 28.8% year-over-year growth. The company’s EPS of $1.25 also surpassed consensus by $0.45. It generated $29.4 million of cash from operating activities during the quarter.
On August 2, Ethan Allen Interiors Inc. (NYSE:ETD) declared a quarterly dividend of $0.32 per share, with a special dividend of $0.50 per share. The company has raised its dividends for three years in a row. As of August 17, the stock’s dividend yield was recorded at 4.90%.
The number of hedge funds tracked by Insider Monkey owning stakes in Ethan Allen Interiors Inc. (NYSE:ETD) stood at 12 in Q1 2022, up from 11 in the previous quarter. The collective value of stakes owned by hedge funds stood at over $20 million.
4. PetMed Express, Inc. (NASDAQ:PETS)
Dividend Yield as of August 17: 5.13%
PetMed Express, Inc. (NASDAQ:PETS) is a Florida-based online pet pharmacy that sells prescription and non-prescription pet medication. At the end of fiscal Q1 2023, the company reported $105.4 million in cash and cash equivalents with $134 million available in total assets. The company’s free cash flow for the quarter came in at roughly $5.4 million and paid over $6 million in dividends to shareholders during the quarter.
PetMed Express, Inc. (NASDAQ:PETS) currently pays a quarterly dividend of $0.30 per share, with a dividend yield of 5.13%, as of August 17. Though the company does not hold any dividend growth track record, its five-year dividend CAGR came in at 9%.
At the end of Q1 2022, 9 hedge funds tracked by Insider Monkey owned stakes in PetMed Express, Inc. (NASDAQ:PETS), down from 13 in the previous quarter. These stakes hold a consolidated value of over $53 million. Jim Simons’ Renaissance Technologies was the company’s leading stakeholder in Q1.
Silver Ring Value Partners mentioned PetMed Express, Inc. (NASDAQ:PETS) in its Q4 2021 investor letter. Here is what the firm has to say:
“PETS was one of the original online sellers of pet medication directly to consumers. Once upon a time this was a growing business, given that they offered much lower prices than those which could be obtained at the vet’s office. However, with Chewy’s entry into the pet pharmacy business and Covetrus’s online offering that allows vets to sell drugs online at only a small premium to PETS’s prices, the value of PETS’s customer proposition has greatly diminished.
The company has been squeezed out of obtaining new customers through paid search by Chewy’s massive ad blitz. This is a situation that is likely long-term in nature. As a results, PETS’s business has entered into a decline in terms of both existing and new customers. This is a trend that I view as likely to continue over the long-term. Essentially, there is no longer a strong reason for PETS to exist as a business – it is neither the lowest priced nor the most differentiated, and is facing bigger competitors that are muscling it out of the business.
As a result of these structural changes, I believe the business is going to continue to decline for a long time, resulting in a far smaller business value than the recent price. I purchased a small put option position during the quarter. My plan is to stick to a total budget of no more than 2% cumulatively over the life of the investment. I will be monitoring new information, and if my thesis appears to be validated by the facts, I will likely continue with the position up until the 2% threshold.”
3. M.D.C. Holdings, Inc. (NYSE:MDC)
Dividend Yield as of August 17: 5.76%
M.D.C. Holdings, Inc. (NYSE:MDC) is a Colorado-based home construction company that specializes in single-family detached homes. In Q2 2022, the company reported a 6% growth in its home sales revenue at $1.45 billion. Its average selling price of deliveries grew by 14% to $572,000 and its net income stood at $189.5 million, up 23% from the same period last year.
M.D.C. Holdings, Inc. (NYSE:MDC) has been paying dividends to shareholders since 1994 and has been raising its payouts for the past 3 years. It currently pays $0.50 per share in the quarterly dividend, with a dividend yield of 5.76%, as of August 17.
In July, JPMorgan lowered its price target on M.D.C. Holdings, Inc. (NYSE:MDC) to $38 with a Neutral rating on the shares, as the firm presented a less constructive outlook on the homebuilders in the current economic situation.
As per Insider Monkey’s database, 13 hedge funds owned positions in M.D.C. Holdings, Inc. (NYSE:MDC) in Q1 2022, compared with 19 in the previous quarter. The stakes owned by these hedge funds are valued at over $24.3 million.
2. B&G Foods, Inc. (NYSE:BGS)
Dividend Yield as of August 17: 7.93%
B&G Foods, Inc. (NYSE:BGS) is an American food holding company that produces various food products such as pickles and condiments. In August, Piper Sandler raised its price target on the stock to $27 with a Neutral rating on the shares, highlighting the company’s Q2 earnings.
Though B&G Foods, Inc. (NYSE:BGS) missed analysts’ estimates in Q2 2022, the company’s revenue of $479 million showed a 3.1% year-over-year growth. The company reported $43 million in cash and cash equivalents, up from $33.7 million in January. In addition to this, the company also paid $34 million in dividends to shareholders during the quarter.
B&G Foods, Inc. (NYSE:BGS) has not raised its quarterly payout since 2018 but the company maintained its payouts over the years. It pays a quarterly dividend of $0.475 per share, with a yield of 7.93%, as of August 17.
Millennium Management owned a stake worth over $20.4 million in B&G Foods, Inc. (NYSE:BGS), becoming the company’s leading stakeholder in Q1. In addition to this, 11 hedge funds in Insider Monkey’s database owned stakes in the company in Q1, worth over $43.4 million.
1. PennantPark Investment Corporation (NYSE:PNNT)
Dividend Yield as of August 17: 9.16%
PennantPark Investment Corporation (NYSE:PNNT) is a New York-based company that provides exposure to middle market credit. The company pays a quarterly dividend of $0.15 per share and has a yield of 9.16%, as of August 17.
In fiscal Q3 2022, PennantPark Investment Corporation (NYSE:PNNT) posted a net interest income of $0.16 per share, which beat market estimates by $0.06. The company’s total investment income for the quarter came in at $23.3 million. It reported $29.5 million in cash and cash equivalents. Moreover, its sales and repayments of investments stood at $198.3 million, up from $191 million during the same period last year.
The number of hedge funds tracked by Insider Monkey owning stakes in PennantPark Investment Corporation (NYSE:PNNT) grew to 13 in Q1 2022, from 7 in the previous quarter. The collective value of these stakes is over $47.8 million.
You can also take a look at 10 Best Dividend Stocks of All Time and 10 Best Long-Term Dividend Stocks
