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Many mid-cap companies are paying dividends. As a matter of fact, 257 companies among the 400 companies which are included in the S&P MidCap 400 index are paying dividends, 125 of them have a dividend yield greater than 2% and 36 companies have a yield of over 4%.

In my previous post, I tried to find out if the five stocks which have the highest dividend yield among the large-cap stocks included in the S&P 500 index are at a bargain now. In this article, I try to find out if the five stocks which have the highest dividend yield among the mid-cap stocks included in the S&P MidCap 400 index are at a bargain now.

While there is no official breakdown, the division between the large, medium and small cap is approximately as follows:

Large-cap: $10 billion and greater

Mid-cap: $1 billion-$10 billion

Small-cap: $100 million-$1 billion

S&P MidCap 400

Description from Standard & Poor's:

The S&P MidCap 400® provides investors with a benchmark for mid-sized companies. The index covers over 7% of the U.S. equity market, and seeks to remain an accurate measure of mid-sized companies, reflecting the risk and return characteristics of the broader mid-cap universe on an on-going basis.

In this article, I will give the corresponding fundamental parameters for these five companies and my own opinion about them. Nonetheless, these data and my opinion should only serve as a basis for further research. All the data for this article were taken from Yahoo Finance and finviz.com on January 11, after the market close.

The table and the chart below present the top five highest dividend yielders, their forward annual dividend rate, the forward yield, the payout ratio and the dividend rate of growth for the past five years.

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R.R. Donnelley & Sons Company (NASDAQ:RRD)

R.R. Donnelley & Sons Company provides integrated communication solutions to private and public sectors worldwide.

R.R. Donnelley & Sons has a very low forward P/E of 5.22 and the price to sales ratio is also very low at 0.16. The forward annual dividend yield is very high at 11.72% and there has not been any dividend growth over the past five years.

RRD has a total cash per share of $2.18 and it is expected to post a profit of $1.79 a share in 2012 and $1.70 in 2013, which should be enough to sustain dividend payments of $1.04. But the company also has a huge debt of $3.79 billion and it might decide to decrease the dividend rate in order to decrease its debt. The RRD stock is trading 34.6% below its 52-week high, and has 49% upside potential based on the consensus mean target price of $13.25.

Despite the huge debt, the compelling valuation metrics, the very rich dividend and the 49% upside potential based on the consensus mean target price of $13.25 make RRD stock quite attractive.

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Data: Yahoo Finance

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Chart: finviz.com

Apollo Investment Corporation (NASDAQ:AINV)

Apollo Investment Corporation is a business development company and operates as a closed-end management investment company.

Apollo has a very low trailing P/E of 7.89 and a very low forward P/E of 10.14. The price to free cash flow for the trailing 12 months is very low at 7.06. The forward annual dividend yield is very high at 8.97% and the annual rate of dividend growth over the past five years was negative at -17.4% and the payout ratio is at 70.8%.

AINV has a total cash per share of $0.05 and it is expected to post a profit of $0.84 a share in the current year and $0.88 in the next year, which should be enough to sustain dividend payments of $0.80.

The AINV stock is trading 5.74% above its 20-day simple moving average, 10.94% above its 50-day simple moving average and 19.95% above its 200-day simple moving average, which indicates short-term, mid-term and long-term uptrend.

The cheap valuation metrics, the very rich dividend and the fact that the stock is in an uptrend are all factors that make AINV stock quite attractive.

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Data: Yahoo Finance

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Chart: finviz.com

Hospitality Properties Trust (NYSE:HPT)

Hospitality Properties Trust, a real estate investment trust (REIT), engages in buying, owning, and leasing hotels.

Hospitality Properties Trust has a trailing P/E of 25.47 and a forward P/E of 26.31. The forward annual dividend yield is very high at 7.85% and the annual rate of dividend growth over the past five years was negative at -9.4% and the payout ratio is very high at 200%.

HPT has a total cash per share of $0.14 and it is expected to post a profit of $3.04 a share in the current year and $3.17 in 2013 which should be enough to sustain dividend payments of $1.88. But the company also has a huge debt of $2.40 billion and it might decide to decrease the dividend rate in order to decrease its debt.

The HPT stock is trading 2.48% above its 20-day simple moving average, 4.35% above its 50-day simple moving average and 1.35% above its 200-day simple moving average, which indicates short-term, mid-term and long-term uptrend.

Most analysts rate the HPT stock as a hold, and I think this rating is the most appropriate.

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Data: Yahoo Finance

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Chart: finviz.com

New York Community Bancorp Inc. (NYSE:NYCB)

New York Community Bancorp, Inc. operates as a multi-bank holding company for New York Community Bank and New York Commercial Bank that offer banking products and services in New York, New Jersey, Ohio, Florida, and Arizona.

New York Community Bancorp has a low trailing P/E of 12.06 and a low forward P/E of 13.25. The forward annual dividend yield is very high at 7.40% and the payout ratio is at 89.3% and there has not been any dividend growth over the past five years.

NYCB has a total cash per share of $5.92 and it is expected to post a profit of $1.16 a share in the current year and $1.02 in the next year, which should be enough to sustain dividend payments of $1.00.

The NYCB stock is trading 2.88% above its 20-day simple moving average, 3.63% above its 50-day simple moving average and 5.34% above its 200-day simple moving average, which indicates short-term, mid-term and long-term uptrend.

The cheap valuation metrics, the very rich dividend and the fact that the stock is in an uptrend are all factors that make NYCB stock quite attractive.

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Data: Yahoo Finance

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Chart: finviz.com

Omega Healthcare Investors Inc. (NYSE:OHI)

Omega Healthcare Investors, Inc. operates as a real estate investment trust (REIT) in the United States.

Omega Healthcare has a trailing P/E of 24.50 and a forward P/E of 21.52. The forward annual dividend yield is very high at 7.11% and the annual rate of dividend growth over the past five years was at 9.4% and the payout ratio is at 174.3%.

OHI has a total cash per share of $0.06 and it is expected to post a profit of $2.16 a share in the current year and $2.24 in 2013, which should be enough to sustain dividend payments of $1.76. But the company also has a huge debt of $1.59 billion and it might decide to decrease the dividend rate in order to decrease its debt.

The OHI stock is trading 4.24% above its 20-day simple moving average, 7.18% above its 50-day simple moving average and 11.47% above its 200-day simple moving average, which indicates short-term, mid-term and long-term uptrend.

Most analysts rate the OHI stock as a hold, and I think this rating is the most appropriate.

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Data: Yahoo Finance

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Chart: finviz.com

Source: 5 Mid-Cap Top Dividend Yielders; Are They Bargain Stocks Now?