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I have searched for profitable stocks that pay rich dividends, and that are in a short-term uptrend, in a mid-term uptrend and in a long-term uptrend. Those stocks would also have to show a low P/E, a low debt and very strong earnings growth prospects.

I introduced in the finviz.com Screener the following demands:

  • Dividend Yield - Over 2%
  • EPS growth next 5 years - Over 20%
  • Trailing P/E - Under 20
  • Total debt to equity - Under 1

As a result, 13 stocks came out. In this article, I describe three of these stocks which in my opinion can reward an investor a capital gain along a rich dividend. I recommend readers use this list of stocks as a basis for further research. All the data for this article were taken from Portfolio123, finviz.com and Yahoo Finance, on September 29, 2013.

Knoll, Inc. (NYSE:KNL)

Knoll, Inc. engages in the design, manufacture, marketing, and sale of furnishings and accessories, textiles, fine leathers, and felt for the workplace and home in the United States, Canada, and Europe.

Knoll has a trailing P/E of 18.51 and a low forward P/E of 14.98. The PEG ratio is extremely low at 0.47, and the average annual earnings growth estimate for the next five years is very high at 39%. The price-to-sales ratio is very low at 0.90, and the price to free cash flow is at 26.71. The forward annual dividend yield is at 2.82%, and the payout ratio is at 51.6%. The annual rate of dividend growth over the past year was high at 22.22%%, and over the past three years was very high at 34.71%.

The KNL stock price is 6.10% above its 20-day simple moving average, 5.02% above its 50-day simple moving average and 7.42% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

Knoll has recorded revenue, EPS and dividend growth, during the last three years, as shown in the table below.

Source: Portfolio123

The table below emphasizes Knoll's superior return on capital over the industry median, the sector median and the S&P 500 median.

(click to enlarge)

Source: Portfolio123

Knoll will report its latest quarterly financial results on October 14. KNL is expected to post a profit of $0.22 a share, a $0.04 decline from the company's actual earnings for the same quarter a year ago.

Knoll has very strong earnings growth prospects, and considering its compelling valuation metrics, and the fact that the stock is in an uptrend, KNL stock still has room to go up. Furthermore, the rich dividend represents a nice income.

(click to enlarge)

Chart: finviz.com

Hi-Crush Partners LP (NYSE:HCLP)

Hi-Crush Partners LP operates as a producer of monocrystalline sand. Monocrystalline sand is a mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells.

Hi-Crush Partners has a very low trailing P/E of 9.08 and a very low forward P/E of 10.28. The PEG ratio is extremely low at 0.27, and the average annual earnings growth estimate for the next five years is very high at 33.15%. The forward annual dividend yield is very high at 7.04%, and the payout ratio is only 15.9%.

The HCLP stock price is 9.04% above its 20-day simple moving average, 14.80% above its 50-day simple moving average and 38.29% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

On August 14, Hi-Crush Partners reported its second-quarter financial results, which beat EPS expectations by $0.03 and beat on revenues. The company reported net income of $14.7 million, or $0.53 per limited partner unit, for the second quarter of 2013. Second quarter results include a net income contribution of $0.7 million, or $0.025 per limited partner unit, for D&I for the period beginning June 11, 2013, when Hi-Crush completed the D&I transaction, and ending June 30, 2013.

Hi-Crush Partners has very strong earnings growth prospects, and considering its compelling valuation metrics, and the fact that the stock is in an uptrend, HCLP stock can move higher. Furthermore, the very rich dividend represents a gratifying income.

Risks to the expected capital gain and to the dividend payment include; a downturn in the U.S. economy, and a decline in the price of natural gas and oil.

(click to enlarge)

Chart: finviz.com

U.S. Silica Holdings, Inc. (NYSE:SLCA)

U.S. Silica Holdings, Inc., together with its subsidiaries, engages in the mining, processing, and sale of commercial silica in the United States.

U.S. Silica Holdings has a trailing P/E of 16.97 and a very low forward P/E of 11.41. The PEG ratio is very low at 0.62, and the average annual earnings growth estimate for the next 5 years is very high at 27.50%. The forward annual dividend yield is at 2.0%, and the payout ratio is at 43%.

The SLCA stock price is 1.98% above its 20-day simple moving average, 5.99% above its 50-day simple moving average and 17.06% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

Analysts recommend the stock. Among the ten analysts covering the stock, seven rate it as a strong buy, and three rate it as a buy.

U.S. Silica Holdings has recorded strong revenue and EPS growth, during the last year and the last three years, as shown in the table below.

Source: Portfolio123

The table below emphasizes the U.S. Silica Holdings' superior return on capital over the industry median, the sector median and the S&P 500 median.

(click to enlarge)

Source: Portfolio123

On July 31, U.S. Silica Holdings reported its second-quarter results, which missed EPS expectations by $0.02 and missed on revenues. The company reported net income of $20.2 million or $0.38 per basic and diluted share for the second quarter ended June 30, 2013 compared with net income of $19.5 million or $0.37 per basic share and $0.36 per diluted share for the same period in 2012.

Second Quarter Highlights

  • Record revenue of $129.8 million increased 24% over the second quarter of 2012
  • Oil and gas volumes increased 44% over the same period in 2012
  • Company reaffirming full-year Adjusted EBITDA guidance of $165 million to $175 million
  • Declares regular quarterly cash dividend of $0.125 per share
  • Announces initial investment in new Greenfield site

U.S. Silica Holdings has recorded strong revenue and EPS growth, and considering its strong growth prospects, its compelling valuation metrics, and the fact that the stock is in an uptrend, SLCA stock can move higher. Furthermore, the solid dividend represents a nice income.

Risks to the expected capital gain and to the dividend payment include; a downturn in the U.S. economy, and a decline in the price of natural gas and oil.

(click to enlarge)

Chart: finviz.com

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in SLCA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source: 3 Dividend Small Caps With Very Strong Growth Prospects Currently In Uptrend