4 Small-Cap Stocks Yielding Over 5% With Strong Buy Ratings


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A simple scan looking for small-cap stocks that are yielding over 5%, have gained at least 10% in 2012 and are rated "Strong Buy" by the majority of analysts covering them turned up four names. The logic behind these metrics was to look for small-caps that may be offering both a very healthy dividend yield as well as potential share appreciation. The scan screened out stocks that were not up at least 10% to avoid selecting any falling knives/trainwreck situations, which are all too common in the small-cap space. A high dividend yield is little consolation if a stock is plunging on a near daily basis. Below, Benzinga highlights the five names that passed the screening metrics.

Chatham Lodging Trust (NASDAQ: CLDT ) - This small-cap REIT is very thinly traded and has a market-cap of only $183 million. Year-to-date, CLDT has climbed roughly 21.5%. At current levels, the REIT is yielding a little more than 6%. The security represents an ownership stake in a hotel investment company. The Trust was formed to invest in extended-stay, select-service and full-service hotels.

Crown Crafts, Inc. (NASDAQ: CRWS ) - This company operates in the infant and toddler product segment, including bedding, bibs, disposable products, soft goods, and accessories. Shares are up better than 66% in 2012 and the stock is offering up a 5.80% dividend yield at current levels. The stock is thinly traded with a daily average volume of just under 27,000 shares, which could make getting in and out of positions tricky.

Homeowners Choice (NASDAQ: HCII ) - This company operates in the property and casualty insurance segment and has a market cap of roughly $93 million. Year-to-date, shares have soared more than 71%, but the stock is currently in a near-term downtrend. On Wednesday, HCII has lost a little more than 9% and was trading at $13.65. At current levels, HCII is yielding around 5.30%. The stock has broken through its 20-day moving average on Wednesday. The 50-day moving average may provide near-term support in the name.

Psychemedics Corp. (NASDAQ: PMD ) - This thinly traded stock only has a market cap of just under $53 million and is up 10% in 2012. At current levels, PMD is yielding roughly 6%. The company provides testing services for the detection of abused substances through the analysis of hair samples. The stock has formed a nice base just below the $10.00 level, and a convincing break of $10.00 could propel the stock upward in the coming months.

(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Investing Ideas
Referenced Stocks: CLDT , CRWS , HCII , PMD

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