Small cap companies that pay a massive dividend are few and far between. As reflected in this list, many are financial companies or REITs.
The listed companies have an ex-dividend date in July, and an annual dividend yield hovering around 12 percent (far above average). Because the payment dates are quickly approaching, investors are at less risk for announcements that will adversely affect stock price.
As both small caps and dividend payers, these stocks can help diversify portfolios in those two often ignored ways.
Five Oaks Investment Corp
Launched in 2012, Five Oaks (NYSE: OAKS) secured $26.2 million in financing to build a portfolio of mortgage backed securities. The company's objective is to provide risk adjusted returns to investors through dividends, and secondarily through capital appreciation.
Five Oaks is the largest dividend payer on the list with a 13.85 percent annual dividend yield. The ex-dividend (the last day investors can purchase the stock to receive payment) date is July 11 and the record date (the day stock needs to be owned to receive payment) July 15.
Armour Residential (NYSE: ARR) is a REIT that manages a portfolio of mortgage backed securities, all of which are backed by government entities. One of the advantages of the REIT structure is that expenses generated from activities related to rent income can be deducted as an expense.
The company currently pays a 13.82 percent annual dividend yield. The ex-dividend date is July 11 and the record date is July 15.
Javelin Mortgage Investment Corp
Similar to Five Oaks, Javelin Mortgage (NYSE: JMI) invests in mortgage backed securities. In their annual report, Javelin stated that the decline of GSEs (ie. Fannie Mae and Freddie Mac) will create a lot of attractive investment opportunities.
Javelin’s 12.81 percent annual dividend yield is spread out over monthly payments. The ex-dividend date is July 11 and the record date is July 15.
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