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3 Small-Cap Stocks on the Rise With Over 4% Dividend Yields
DLXDeluxe(DLX) MarketBeat·2024-12-04 12:15

Core Viewpoint - Small-cap stocks can provide consistent dividends, and three specific companies have shown strong performance and positive market sentiment over the past three months [1] Group 1: Sinclair Broadcast Group - Sinclair currently offers a quarterly dividend of 0.25pershare,resultinginadividendyieldof5.50.25 per share, resulting in a dividend yield of 5.5% [2] - The company's shares have increased by 30% in the last three months, indicating strong market performance [2] - Sinclair operates in 86 markets, including major cities like Washington, D.C., Seattle, and Minneapolis, making it one of the largest local news producers in the U.S. [2] - Revenue growth has been positive every quarter in 2024, with Q1 growth at 3% and accelerating to 20% in Q3 [3] - The local broadcasting sector has lost less than 0.5% of market share compared to cable, which lost nearly 4% from September 2023 to September 2024 [4] Group 2: Deluxe Corporation - Deluxe has maintained a quarterly dividend of 0.30 per share since at least 2017, yielding 5.2% over the past year [5] - Shares have risen by 14% in the last three months, reflecting positive investor sentiment [5] - The company generated over 700millioninrevenuefromcheckprintingin2023,withonlya2700 million in revenue from check printing in 2023, with only a 2% decline in check revenue last quarter [8] - Management forecasts a revenue growth of around 3% and aims to increase free cash flow significantly [9] - Analysts suggest that Deluxe remains undervalued, with a potential 34% upside according to average Wall Street price targets [9] Group 3: Silvercrest Asset Management Group - Silvercrest has increased its quarterly dividend by 67% since 2017, currently paying 0.20 per share, resulting in a dividend yield of 4.4% [10] - The firm manages over $35 billion in assets, reflecting a 13% increase from the previous year [11] - The company has maintained a 98% average client retention rate since 2006, indicating strong client satisfaction [13] - Although revenue growth has been modest at 2% to 4% in recent quarters, the ultra-high-net-worth individual market is expected to grow, with a 5% increase in 2023 [13]