16.10 +0.11 (0.69%)
After hours: 5:53PM EST
|Bid||16.01 x 1400|
|Ask||16.25 x 900|
|Day's Range||15.83 - 16.40|
|52 Week Range||11.94 - 16.40|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||9.35|
|Earnings Date||Apr 29, 2020 - May 03, 2020|
|Forward Dividend & Yield||1.28 (8.15%)|
|Ex-Dividend Date||Feb 27, 2020|
|1y Target Est||14.80|
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced its financial results for the fourth quarter and full-year ended December 31, 2019.
Not all dividend stocks are created equal. The average dividend yield among S&P companies is only 2%, not much higher than a Treasury bond. Years of low-interest policy from the Fed has worked to push return rates down across the board, and dividend yields – on average – have simply lagged slightly.Of course, that’s an average. You can still find high returns out there, and dividend stocks are a logical place to look. After all, while Fed rates may establish a cap for bond interest, dividends are only limited by the paying company’s overall profits. The sky’s the limit.We’re taking a look at that boundless upper limit today, using the TipRanks Stock Screener tool to pull up three stocks with 8% or better dividend yields. And back to our initial point, to show how high dividends are not the only factor to consider, Wall Street’s analysts only rate two of these as Buys. Let’s dive in.Plains GP Holdings (PAGP)Our first stock is a holding company, whose subsidiaries operate in the oil industry. The company’s operational arms are involved in the crude oil midstream sector, including transport, storage, terminalling, and marketing, as well as the liquid petroleum gas (LPG) and natural gas storage segments. PAGP has a $3 billion market cap, a high upside potential, and a surprising low point of entry.The stock is down 26% over the past 12 months, as the oil industry has faced a continuing low-price regime. While oil is a necessary commodity, that today’s economy cannot do without, a combination of high production and slack demand has put downward pressure on prices. WTI, the main US benchmark price, is down 6.6% in the past 12 months, and trading has been volatile in the oil markets.Despite the headwinds in the oil markets, PAGP beat the revenue estimates in its Q4 earnings report, while missing on earnings. EPS was reported at 26 cents, down steeply year-over-year and only half what was expected. In better news, the company reported $9.15 billion to top-line revenue, 9.3% better than the $8.37 billion forecast.With net-positive earnings and rising revenues, PAGP was able to maintain its 36-cent per share quarterly dividend, even while the payout ratio bumped up to a dangerous 136%. The company has been making reliable dividend payments since 2014, and has raised the payment modestly in the past two years. At $1.44 annualized, the yield is a generous 8.54%.Barclays analyst Christine Cho sees PAGP growing going forward, resting as it does on a sound foundation. She writes, in her recent report on the stock, “Fundamentals remain on solid footing for the industry, with midstream companies largely posting record profits, production set to grow in 2020, and crude prices generally stabilizing… we think global supply/demand for oil is more balanced, supported by the combination of increased capital discipline on the part of U.S. shale producers, OPEC production cuts, and subsiding recession fears...”Cho puts a $24 price target on PAGP, suggesting an upside of 42% behind her Buy rating. (To watch Cho’s track record, click here)Overall, Plains GP has a Strong Buy from the analyst consensus, with 4 recent reviews that include 3 Buys and 1 Hold. Shares are priced affordably, at $16.83, and the $21.33 average price target implies room for a robust 26% upside. (See Plains GP’s stock analysis at TipRanks)Ares Capital Corporation (ARCC)Moving on, we enter the investment management sector. Ares Capital is an asset manager with a focus on providing full-service financial solutions for middle-market companies. It has been traded publicly since 2014 and the stock has paid a reliable dividend ever since. ARCC has a market cap over $8 billion, and brings in over $1.5 billion in annual revenue.In Q4, Ares met earnings expectation, with EPS reported on target at 45 cents. Quarterly investment income was up 12% year-over-year, to $386 million, but missed the forecast. Total investment income for 2019 was reported at $1.53 billion, in line with estimates and up 14.3% from 2018. While the earnings and revenue were generally seen as good, the company reported 28.7% higher expenses in Q4, a development that pushed stock prices down 1.4% since the release.The quarterly figures were good enough to maintain ARCC’s dividend, which pays out 40 cents per share quarterly. The $1.60 annualized figure gives a yield of 8.42%, far above the broader market average. At 89%, the payout ratio indicates that Ares returns most of its profits to shareholders – but that it can afford to do so. ARCC has been slowing raising the dividend payment over the last few years.Lana Chan, 4-star analyst from BMO Capital, likes what she sees in ARCC. Citing especially the company’s ability to meet challenges, she writes, “ARCC currently has ~$3 billion in undrawn credit commitments and remains at the low end of its targeted leverage range, giving management ample dry powder to take advantage of any future market opportunities.”Chan gives this stock a Buy rating, and backs it with a $21 price target. Her target indicates an 11% growth potential in coming months. (To watch Chan’s track record, click here)Also bullish is Jefferies 5-star analyst John Hecht. He wrote of the stock’s overall condition, “Revenues of $386M were consistent with our forecast, as robust portfolio growth and higher dividend income offset ongoing yield compression. The portfolio grew 16% YoY, ahead of our forecast, as ARCC ramped leverage to 0.93x. Credit remains stable and below peer averages while NOI is comfortably ahead of ARCC's consistent distribution…”In line with his upbeat outlook, Hecht set a $20.50 price target, with an 8.5% upside potential, to support his Buy rating on ARCC. (To watch Hecht’s track record, click here)With 8 recent Buy ratings, ARCC’s analyst consensus view is a unanimous Strong Buy. This is another affordable stock, priced at just $18.89. The average price target of $20 suggests a modest upside potential of 5.88% for the stock. (See Ares Capital stock analysis at TipRanks)Hersha Hospitality (HT)The last stock on our list is the sell-side call. Hersha Hospitality is a real estate investment trust (REIT), a company specializing in buying, owning, operating, and leasing various residential and commercial properties. In compliance with tax law, these companies must return the bulk of their profits to shareholders, making them frequent visitors to “great dividend stock” lists. But not always.Hersha owns 48 hotels, with a total of 7,644 rooms, on both coasts of the US. The company’s West Coast properties are located in California and Washington, while the more numerous East Coast properties are located in Massachusetts, New York, Pennsylvania, Washington DC, and South Florida. New York and California have the most Hersha properties, with 10 and 7 respectively.High costs in urban areas have put a damper on company profits, and the company reported 53 cents per share in funds from operations (FFO). This was 8.6% below the forecast, and a 23% drop from the prior year’s Q3. Total revenue, at $135 million, was closer to the forecast (missing by less than 1%), and up 5.5% year-over-year. In the last four quarters, HT has only beating the forecasts once – and the stock is down 18% in the past 12 months.While earnings were mixed, Hersha kept up its dividend payments. The company pays out 28 cents per share quarterly, or $1.12 annualized, and shows a yield of 8%. Hersha has paid out the dividend reliably since 2011, an enviable record. The payout ratio is low for an REIT, at just 53%.Wall Street’s analysts are not impressed with HT shares right now. Writing from Barclays, Anthony Powell notes “Hersha’s 3Q19 results missed our estimates, guidance and consensus as conditions in several of the company’s urban markets were more challenging than the company originally forecast. While Hersha continued to outperform in several of its markets, the overall softer environment in 3Q and October drives a 6% reduction in EBITDA guidance for the year. Looking forward… high supply growth in New York and relatively high leverage will remain concerns for investors”Powell’s $14 price target on HT shares indicates a slight downside from current prices, in line with his Sell rating. (To watch Powell’s track record, click here)4-star analyst Ari Klein, of BMO Capital, is also downbeat on this stock. He writes, “HT reported a weaker 3Q19 and lowered 2019 guidance, including adjusted EBITDA guidance by 5% at the midpoint and adjusted FFOps by 8%... EBITDA growth is not materializing as expected by HT…”Klein rates the stock a Sell, and his $12.50 price target implies a downside of 11.4%. (To watch Klein’s track record, click here)Hersha Hospitality gets a Moderate Sell rating from the analyst consensus, with 2 Hold and 1 Sell rating given in recent weeks. Shares are priced at $14.11, and the $14.33 average price target suggests a minimal upside of 1.56%. (See Hersha stock analysis at TipRanks)
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company") the largest and leading specialty finance provider to innovative, venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced that effective February 20, 2020, it has replaced its existing $200.0 million credit facility with MUFG Union Bank N.A. ("MUFG") with a new credit facility under which Royal Bank of Canada /City National Bank, a National Banking Association, Goldman Sachs Bank USA, Umpqua Bank, TIAA, FSB, Zions Bancorporation, N.A., dba California Bank & Trust, HSBC Bank USA, N.A., Hitachi Capital America Corporation and CIT Bank, N.A., together with MUFG, have committed a total of $400.0 million in credit capacity subject to borrowing base, leverage and other restrictions. The new credit facility also includes an uncommitted accordion feature of $200.0 million. The interest rate applicable to borrowings under the new credit facility has been reduced to LIBOR plus 2.50% and the advance rate under the new credit facility has been increased to a maximum of 65% against eligible loans. The new credit facility matures in February 2023, plus a 12-month amortization period.
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, is pleased to announce that its Board of Directors has declared a supplemental cash distribution of $0.08 per share.
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), the largest and leading specialty finance provider to innovative, venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, is pleased to announce that its Board of Directors has declared a fourth quarter 2019 cash distribution of $0.32 per share. The following shows the key dates of the fourth quarter 2019 distribution payment:
Hercules Capital's (HTGC) results for the fourth quarter of 2019 are expected to reflect favorable impacts of an anticipated rise in investment income.
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company") today announced a private offering totaling $120.0 million in aggregate principal amount of $50.0 million 4.28% Notes due February 2025 (the "February Notes") and $70.0 million 4.31% Notes due June 2025 (the "June Notes").
Syndax Pharmaceuticals, Inc. ("Syndax," the "Company" or "we") (Nasdaq:SNDX), a clinical stage biopharmaceutical company developing an innovative pipeline of cancer therapies, today announced that it has entered into an agreement with five leading life sciences investors, including Biotechnology Value Fund, L.P., Boxer Capital and AI Life Sciences Investments LLC, an affiliate of Access Industries Inc., for the purchase of common stock at $8.00 per share, representing a premium of 20% to the share price as of market close on Thursday, January 30, 2020. Syndax anticipates aggregate gross proceeds from the offering will be approximately $35.0 million. Closing of the transaction is expected to occur on or about February 4, 2020.
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced that it has scheduled its fourth quarter and full-year 2019 financial results conference call for Thursday, February 20, 2020, at 2:00 p.m. PT (5:00 p.m. ET). Hercules will release its financial results after market close that same day.
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced that it has originated more than $10.0 billion in total debt commitments since the Company’s inception in December 2003.
ChemoCentryx, Inc., (CCXI) today announced that the Company has secured a credit facility of up to $100 million provided by Hercules Capital, Inc. (HTGC), a leader in customized financing for companies in life sciences and technology-related markets. “Through this non-dilutive credit mechanism, we have options to strengthen our robust balance sheet as we advance avacopan towards commercialization in ANCA vasculitis,” said Thomas J. Schall, Ph.D., President and Chief Executive Officer of ChemoCentryx. The $100 million credit facility from Hercules Capital comprises three tranches over the next two years to be drawn at ChemoCentryx’s discretion as follows: the first tranche of $40 million is available through December 2020, $20 million of which would be available upon the submission of the avacopan New Drug Application (NDA) for the treatment of ANCA vasculitis; the second tranche of $30 million is available through December 2021 upon NDA approval of avacopan for the treatment of ANCA vasculitis (NDA Approval); the remaining $30 million is available through December 2022, subject to certain conditions.
Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), the largest specialty financing provider to innovative venture, growth and established stage companies backed by top-tier venture capital and select private equity firms, today announced select investment milestones and operating highlights for 2019.
When it comes to dividend investing there are many traditional stock sectors which have been the go-to stocks for bigger dividend distributions. Utilities of course are one of the usual areas, in that many older utilities stocks used to be called "widows and orphans" stocks for their reliability in generating income.And indeed, utilities continue to deliver income and safer gains over the longer haul. The S&P Utilities Index has an average yield of 3.2% -- which is well above the S&P 500's average yield of 1.8%. And over the past ten years, the Utilities Index shows a price gain of 105.7% but with dividends, the return jumps by nearly double to 202.3%.Source: Chart by Bloomberg Then there is the more modern-day source for widows and orphans: real estate investment trusts (REITs). Thanks to the Cigar Excise Tax Extension Act of 1960, companies owning real estate and related assets are able to be formed as pass-through securities largely exempt from income taxes. And thanks to the Tax Cuts and Jobs Act of 2017, REIT dividends also come with a 20% deduction for individual investors when they file their taxes with the tax treatment found in Box 5 of their 1099-DIV forms.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe REIT market, as measured by the Bloomberg US REITs Index, has an average yield of 3.8.%. That's much higher than the general S&P 500. And like for utilities, the past decade has shown a price gain for the index of 116.3% while with dividends, the return again jumps to 223.9%.Source: Chart by Bloomberg But there are many sectors and individual stocks that you will be surprised to learn offer ample dividend yields well beyond the usual sources for stock income investors.The following are some of my recommendations which are inside the model portfolios of my Profitable Investing. Dividend Stocks to Buy: Covanta (CVA)Source: Chart by Bloomberg Dividend Yield: 6.8%The world is increasingly surrounded by trash and waste. Think of the Disney (NYSE:DIS) film WALL-E, in which the world's population has fled in a cruise ship-like space craft as trash has piled up so high that there is no room for anything including crops and food production. While we are not nearly there, trash continues to be a bigger problem.Adding to the problem is that recycling is increasingly not economically viable. Sorting centers have been shut down or severely limited. This has led to many hundreds of municipalities throughout the U.S. no longer conducting recycling programs.Enter the problem solver: Covanta (NYSE:CVA). The company operates collection and processing facilities for trash throughout the U.S. Covanta cleanly incinerates the trash, providing clean energy which is then sold on the wholesale and contracted municipal markets for revenue.So, Covanta earns cash from collecting trash and then earns more from selling clean energy.It yields 6.8% and has been raising the dividend distribution by 3.1% on average for the trailing five years. * 7 Stocks to Buy for January and Beyond Revenues are rising with the trailing year seeing gains of 6.6%. And while operating margins are narrow, they are still steady to feed the dividend income. And with newer and pending additional investments from investment companies, expansion is set to continue for the cash from trash company. FMC Corporation (FMC)Source: Chart by Bloomberg Dividend Yield: 1.8%Food is another critical problem for the world. Continuing population expansion is stressing agriculture to produce more and more crops, as well as livestock, for a hungry world.Now, you might buy a farm and try your hand at growing crops or raising cows and pigs -- but I have a better idea which comes with nice dividends. It starts with getting better-quality crops from grains to produce and even grapes for wine. FMC Corporation (NYSE:FMC) is a long-standing company with a history of transforming itself every so many decades. It's now fully focused on enhancing agricultural production.FMC makes and delivers pesticides and herbicides and works with local producers around the globe, including tough markets such as China and India. And it has history with one of the first patents for chemical application hardware many decades ago.The dividend yield is running at a lower rate of 1.8%. But it has huge revenue gains over the past year by 69.3%. And its operating margins are fat at 17.3%, which in turn deliver a return on equity of 18%. Lots of cash and little debt makes for a dependable company.FMC has delivered a total return including dividends of 112.7% over the past three years. Its recent focus on agricultural chemicals helps make it a good and dependable performer for both income and gains. Zoetis (ZTS)Source: Chart by Bloomberg Dividend Yield: 0.6%Then for livestock there's Zoetis (NYSE:ZTS). This company makes animal healthcare products and vital vaccines. It is mission critical for farm livestock production as well as highly beneficial for pets including my dachshund, Blue. In addition, China and many other markets are experiencing African swine fever, which is decimating pork production and pig populations. Zoetis is an expert in solving this, including with its patented vaccines.Revenues are up 9.8% over the past year and operating margins are fat at 31.1%. And while the dividend yield is a bit sparse at 0.6% as the company has been retaining earnings for more product development, the distributions are up 30.2% over the past year. * 7 'A'-Rated Stocks to Buy Under $10 Zoetis has provided a total return including dividends of 217.98% over the past five years -- well above the S&P 500. And it makes for a great play on cash from food and farming markets. Hercules Capital (HTGC)Source: Chart by Bloomberg Dividend Yield: 9.5%Technology is usually assumed to be for growth and not income. And this is easily seen in the average yield for tech stocks, as measured by the S&P Information Technology Index. The average is a mere 1.2% -- much lower than for the S&P 500.But I have a tech stock that significantly bucks this assumption. Hercules Capital (NYSE:HTGC) is based in the tech mecca of the U.S. in Palo Alto, California. Structured under the Investment Companies Act of 1940 and the Small Business Investment Incentives Act of 1980, the company largely avoids corporate income taxes and in turn pays out ample dividends.It focuses on finding and financing tech companies in various stages of their development. It loans money as well as taking equity participation and works to guide companies through their development and exit strategies.Revenues continue to rise year in and year out with the past year seeing gains of 8.8%. Internal financial returns are significantly better than traditional financials and banks. And while the stock has generated a total return of 233.2% over the past ten years, it is still a value. HTGC stock is only valued at a price-to-book ratio of 1.4.Now I come to the great news. The dividend yields 9.5% on an annual basis, as the company pays both regular dividends as well as ongoing special distributions which continue to rise over the past years.Tech can be a surprising source for dividend income with Hercules Capital. American Campus Communities (ACC)Source: Chart by Bloomberg Dividend Yield: 4.1%When it comes to college, most think about spending money to educate their children so that they can be empowered to earn salaries later in life. But college isn't just about investing for the future -- it can also be a source for surprising dividends right now.American Campus Communities (NYSE:ACC) develops, owns and operates student housing for major universities around the U.S. Despite housing shortages at many major schools, universities are more eager to fund academic and athletic facilities. But ACC is there to serve the gaps.Revenues are rising from its impressive collection of properties gaining 10.6% over the past year. And its return from actual property operations (excluding other profits from gains and appreciation), as measured by the return on funds from operations (FFO), is ample at 11%.It is structured as a REIT but with a particular focus on colleges, which is unique as it is the only listed REIT in this space which is increasingly dominated by private equity and other investment funds.Its dividend yields 4.1% and the stock has generated a total return of 141.9% including dividends for an average annual equivalent return of 9.2%.Colleges are great at education, but thanks to American Campus Communities, they are also a surprising source for dividend income. MFA Financial (MFA)Source: Chart by Bloomberg Dividend Yield: 10.5%Home is of course where the heart and hearth are, but it also where ample dividends can be a surprise for investors in the know.And no, I'm not writing about renting out homes or home equity loans. But instead, I have a stock from a company which generates lots of cash while paying a dividend yielding in the double digits.MFA Financial (NYSE:MFA) yields 10.5% -- and that isn't a misprint. And it isn't a flighty, higher-risk stock either. It has generated a total return including dividends of 241.8% over the past decade.The company owns and manages a portfolio of mortgage securities on homes and other properties throughout the U.S. And it knows how to deal with risks and opportunities in that it was paying dividends and performing well even during the very dark times for mortgages in 2007-2008.Legally, it is structured under REIT laws which makes it tax advantaged for corporate income taxes, with tax deductions for individual investors as well. Revenues are rising, with the past year gaining 5.1%. Plus, its internal financial performance continues to deliver to fund the dividends.And it is a bargain stock which is priced at $7.64 and is only valued at 1 times book. It is a great surprise for big dividends with proven performance. Franco-Nevada (FNV)Source: Chart by Bloomberg Dividend Yield: 1%Gold is on the move. The current spot price for gold is sitting at $1,525.52 and is up by 20% since May of last year. Gold is gaining from some specific factors including the recent softness in the U.S. dollar as well as falling shorter-term U.S. dollar interest rates. Gold benefits from a lower dollar in that as it is priced in dollars, it is worth more as the dollar dips. And gold benefits from lower interest rates because it costs less in opportunity cost to hold it.Source: Chart by Bloomberg But gold has a catch. It doesn't pay a dime in interest. And it costs to store it. Even the SPDR Gold Shares (NYSEARCA:GLD) exchange-traded fund has a cost to own it. Its expense ratio runs at 0.4%, or $40 on a $10,000 investment, and comes with no dividend. So, if gold doesn't move up or drops back, it has locked in losses.But I have an alternative for gold which does pay a dividend. Franco-Nevada (NYSE:FNV) is a Canadian-based company which also easily trades in the U.S. markets. It doesn't mine gold, but merely obtains royalties on gold production quarter by quarter and year by year. This means no capital for mine development and operation, and less risk that capital will be lost in bad mines.Gold goes up in price and it gets more cash. And if gold goes down, it still gets paid cash. And it pays a dividend all along the way.The total return for the stock since May 2019 is 47.8%, which is more than twice the price movement in gold.Now the dividend doesn't yield much at 0.97% -- but that's way better than zero. And the stock return is proof that it makes a surprising (and better) investment over gold itself or a gold ETF.Neil George was once an all-star bond trader, but now he works morning and night to steer readers away from traps -- and into safe, top-performing income investments. Neil's new income program is a cash-generating machine … one that can help you collect $208 every day the market's open. Neil does not have any holdings in the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for January and Beyond * 7 Excellent Value Stocks to Buy for 2020 * 5 Hot Housing Stocks That Could Stay Hot in 2020 The post 7 Surprising Dividend Stocks to Buy That Offer Ample Yields appeared first on InvestorPlace.
Low-interest (3-month LIBOR plus 3%) loan facility from Sumitomo Dainippon Pharma increased to allow repayment of pre-existing debtHiroshi Nomura, President, CEO, and.
Hercules Capital (HTGC) remains well-positioned for growth based on its strong liquidity position, improving economy and robust loan originations.
The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F […]
Hercules Technology Growth Capital (HTGC), based out of Palo Alto, California, is a leading specialty finance company providing venture debt and equity to venture capital and private equity backed technology and life science companies, explains Bryan Perry, editor of Cash Machine.
One of the bigger challenges for investors in the U.S. stock market is the increased concentration of larger stocks into many leading and widely followed indexes. And those indexes, in turn, have become the underlying basis for bigger exchange-traded funds (ETFs). The impact of this is that a handful of large-capitalized stocks drives the stock market, and conversely, the stock market can drive individual stock prices of those large cap companies.This can be a good thing in the near term. If the market is rising, even companies with questionable fundamentals can be lifted up. But that size can be a double-edged sword for a portfolio, as large-cap stocks can be sold off just as easily in a downward wave.One of my favored ways to build and run a stock portfolio is to have a collection of smaller companies which don't plug into major indexes and ETFs. They are, in turn, less market sensitive during downturns. And further, by focusing on smaller companies which pay bigger dividends, I get lots of cash coming into the portfolio.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd if the dividends are indeed very large, I don't necessarily care if the market ever finds them. After all, I get to keep buying the stock at lower prices until they get discovered. * 7 Strong Buy Stocks That Are Bargains Right Now Here are four stocks that I'll share with you that are not well-followed and pay ample dividends -- with the understanding that you'll keep them to yourself. Small-Cap Dividend Stocks: Compass Diversified Holdings (CODI)Dividend Yield: 6.5%Compass Diversified Holdings (NYSE:CODI) is set up under the Investment Companies Act of 1940, which provides for the company to be listed on the exchanges as an investment holding company. And as a holding company, it is not subject to corporate income taxes. That means there is all the more cash to feed nice dividends for its shareholders.As a holding company, it is run much like a private equity company. It buys small-to-midsize operating companies and works with management to improve revenues and control costs and build up value. And at some point, it will sell the companies, take the profits and redeploy the proceeds into new investments in other companies.It might also be compared to the much larger Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), at least in its early days when Warren Buffett used to focus on smaller companies with lots of cashflows.Compass focuses on two major areas of companies in its investments -- consumer goods and industrial goods and services. In turn, each of the companies in either area have very strong brands for quality and desirability.The shares have returned over 100% in just the past five years alone.Source: Chart Courtesy of Bloomberg Compass Diversified Total Return Source BloombergThis return is a combination of price appreciation and the ample dividends. The dividend distributions paid quarterly are currently running at 36 cents per share for a yield of 6.5%.The company has revenues which, for the trailing year, are up 33.2%. And with nice margins, the return on equity is a whopping 43.8% and the return on the company's capital is an also impressive 18.6%. And it has lots of cash on hand and debts that are modest at 46.5% of assets.But despite the great numbers and the great stock performance, it is still a bargain. The stock is valued at a discount of 20% of trailing sales. Covanta Holding (CVA)Dividend Yield: 6.9%Covanta Holding Corporation (NYSE:CVA) is a big problem solver for the economy and society. In the U.S., we continue to generate piles of trash, from shopping bags to Amazon (NASDAQ:AMZN) delivery boxes and everything in between. And while many like the concept of recycling, it doesn't work very well. Back in 2018, China banned the import of recycling materials. As the largest sorter of trash for recycling, that meant that recycling went from being a low-cost, sometimes profitable venture to a higher-cost, not-going-to-happen process. Hundreds of municipalities around the U.S. have canceled recycling, sending more trash to landfills.Covanta, under municipal contracts, collects or accepts trash and former recycling and incinerates it into green energy. It then sells that energy back to municipalities and the wholesale power market. And the metals which are left in the cinders are also sold off for additional cash.Source: Chart Courtesy of Bloomberg Covanta Holding Total Return Source BloombergThe company's stock has delivered a return of 43.5% over the past 10 years, including a nice dividend. The dividend distribution is currently running at 25 cents per share for a yield of 6.9%. * 7 Excellent Bank Stocks Worth an Investment Revenues are continuing to rise, with the trailing year seeing gains of 6.6%. Running much like a nice predictable utility, its operating margins are okay at 3.4%. That in turn feeds a modest return on the company's overall capital of 3.9%. It has ample cash on hand for liabilities and its debt level is manageable at 64.9%. But the company is working to decrease its debts and has newer investments by and co-ops with some major global infrastructure investment companies including from Macquarie (OTCMKTS:MQBKY).And the stock of the company is particularly cheap compared to traditional utilities, as it is valued flat to trailing sales. Hercules Capital (HTGC)Dividend Yield: 9.2%Hercules Capital (NYSE:HTGC) is also set up under the Investment Companies Act of 1940 as a holding company, as well as the Small Business Investment Incentives Act of 1980. As such its corporate income taxes are limited for more cash for dividends.Hercules is what I refer to as an alt-financial company. It provides loans and financing to companies much like a commercial bank used to -- but with substantially less regulatory costs and challenges. And unlike a traditional commercial bank, it also can and will take equity stakes in the companies which it finances. That makes it more like merchant banks of old.In addition, it also provides guidance to its financed companies and other assistance so that it also acts much like a venture capital investor.Based in Palo Alto, California -- the tech mecca for U.S. innovations -- Hercules' sole focus is technology companies. It goes around finding great innovative companies at various stages and then works with them to come to an eventual exit strategy either in an IPO or a takeover. And its past and current deals are a who's who of bold-faced tech namesSource: Chart Courtesy of Bloomberg Hercules Capital Total Return Source BloombergThe shares have returned 242.4% over the past decade including the ample dividend. The dividend distribution is currently running at 32 cents per share for a yield of 9.2%. But throughout last year and this year - it has regularly been paying regular additional dividend distributions for an annual yield of 9.53%.Revenue is up 8.80% over the trailing year. And the company has a very high net interest margin (NIM) of 9.40% meaning that it has a wide margin between its funding costs and its interest earned from its financing tech companies. And it works well in its operations with an efficiency ratio of 52.50% which measures how much it costs as a percentage of each dollar earned. This level compares well against commercial banks.Debts are reasonable at only 49.5% of assets and access to capital is good -- as further evidenced by the NIM.And despite the stock performance and the good dividend, the stock is only valued at 1.35 times its very impressive book of business. TPG Specialty Lending (TSLX)Dividend Yield: 7.2%TPG Specialty Lending (NYSE:TSLX) is a non-traditional financial which makes loans to companies and other entities, much like traditional bank. But unlike traditional banks, alt-financials have much less regulatory challenges and costs so that margins are better, and they continue to grab more and more business away from their competitors in banking.TPG is part of was called Texas Pacific Group a leading private equity company which gives it a great deal of reach for clients as well as eased access to credit.TPG Specialty Lending makes loans and other financial investments in middle-market companies primarily located in the US. So, they are at the core of what banks used to dominate. And they do it all very well.Revenues are up over the trailing year by 24.2%, and it earns those numbers very efficiently. Its net interest margin, which measures its cost of funds against its interest earning loans, is multiple times of the average for U.S. banks at 10.2%.And with less regulatory burden, it can operate on the cheap. Its efficiency ratio, which measures how many cents it costs to earn a dollar, is a fantastic 31.5%. That means it costs only 31.5 cents for each dollar earned. This is half as much or more than what it costs regular banks.This delivers a return on equity of 12.00% and a return on assets of 6.40% - again much better than traditional banks.And since it is set up under the Small Business Investment Incentive Act of 1980, it avoids most Federal income taxes, making for more cash for dividend income. And that income is ample, with the standard dividend yielding 7.2%. But it gets even better, because the company regularly pays special dividends on an ongoing basis throughout the year -- so the current 12-month dividend yield actually is running at 8.21%.Source: Chart Courtesy of Bloomberg TPG Specialty LendingBut if you think that the stock might be expensive as it has returned 26.24% year to date - it is not. As the stock is only valued at a meager 1.30 times its book value of loan and other assets making it a bargain compared to reasonably performing traditional banks. * 5 Lottery Stocks With Huge Upside -- And a Real Chance of $0 Now, that I have shared a handful of some of my favored small cap stocks with bigger dividends, perhaps you might take a look at my Profitable Investing at www.pofitableinvesting.investorplace.com.In addition, you can also sign up for my free weekly ezine -- the Income Investors Digest.And for a series of income ideas - take a look at my recently published book, Income for Life which covers sixty-five income streams in nearly 400 pages that anyone can get. And I've written them all up in a simple and engaging way that are easy to understand and follow.For more information on my book, Income for Life click here. As noted, it is nearly 400 pages of income producing investment strategies for all weather economic conditions as well as additional income producing ideas that anyone can use successfully.Neil George was once an all-star bond trader, but now he works morning and night to steer readers away from traps -- and into safe, top-performing income investments. Neil's new income program is a cash-generating machine…one that can help you collect $208 every day the market's open. Neil does not have any holdings in the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Sickly Healthcare Stocks to Avoid * 5 Lottery Stocks With Huge Upside -- And a Real Chance of $0 * 7 Top Stocks to Buy for 2020 The post 4 Small-Cap, Big-Dividend Stocks appeared first on InvestorPlace.
Loan growth will likely continue aiding Commerce Bancshares' (CBSH) revenues. Yet, persistently increasing costs may hurt its bottom line.