Seeking Alpha
Profile| Send Message|
( followers)  

Don’t overlook mid cap stocks. Mid cap stocks are often ignored because they are victims of a reverse Goldilocks effect: they are too big for analysts who hope to capture the small firm effect but are not as captivating as well-known large caps. As investors seeking dividend income and capital appreciation, we seek to find compelling investments regardless of market capitalization.

Six mid cap stocks were found with track-records of growing shareholder wealth and providing shareholder income. These stocks have dividend yields that exceed 3%. Moreover, for the past 10 fiscal years each of these dividend-paying stocks has demonstrated commitment to increasing shareholder wealth through overall positive returns on shareholder equity and commitment to shareholder income by issuing dividends over the same period:

Bemis Company, Inc. (NYSE:BMS) recently traded at $28.85 per share. At this price level, the stock has a 3.3% dividend yield. For 10 out of the past 10 fiscal years, a share of BMS paid a total of $7.24 in dividends. Of these dividend payments, a total of $4.30 were paid in the last five years.

BMS shareholders have endured a -8.9% change in share price over the past year. At present, shares of this midcap stock trade at a price-to-book ratio of 1.8, a price-to-earnings multiple of 14.5, and a price-to-sales multiple of 0.6 (trailing twelve months). Over the past decade shareholders savored a 13.2% average annual return on equity.

Genuine Parts Company (NYSE:GPC) recently traded at $57.18 per share. At this price level, the stock has a 3.2% dividend yield. For 10 out of the past 10 fiscal years, a share of GPC paid a total of $13.54 in dividends.

GPC shareholders have savored a 15.2% increase in share price over the past year. At present, shares of this midcap stock trade at a price-to-book ratio of 3.1, a price-to-earnings multiple of 16.5, and a price-to-sales multiple of 0.7 (trailing twelve months). Over the past decade shareholders savored a 14.8% average annual return on equity.

Leggett & Platt, Incorporated (NYSE:LEG) recently traded at $21.4 per share. At this price level, the stock has a 5.2% dividend yield. For 10 out of the past 10 fiscal years, a share of LEG paid a total of $7.26 in dividends. Of these dividend payments, a total of $4.53 were paid in the last five years.

LEG shareholders have sustained a -1.3% change in share price over the past year. At present, shares of this midcap stock trade at a price-to-book ratio of 2.2, a price-to-earnings multiple of 18.0, and a price-to-sales multiple of 0.8 (trailing twelve months). Over the past decade shareholders enjoyed a 9.2% average annual return on equity.

Rayonier Inc. (NYSE:RYN) recently traded at $40.21 per share. At this price level, the stock has a 4.0% dividend yield. For 10 out of the past 10 fiscal years, a share of RYN paid a total of $9.83 in dividends. Of these dividend payments, a total of $6.56 were paid in the last five years.

RYN shareholders have savored a 18.0% growth in share price over the past year. At present, shares of this midcap stock trade at a price-to-book ratio of 3.6, a price-to-earnings multiple of 18.0, and a price-to-sales multiple of 3.5 (trailing twelve months). Over the past decade shareholders savored a 16.6% average annual return on equity.

Sonoco Products Co. (NYSE:SON) recently traded at $31.95 per share. At this price level, the stock has a 3.6% dividend yield. For 10 out of the past 10 fiscal years, a share of SON paid a total of $9.48 in dividends. Of these dividend payments, a total of $5.23 were paid in the last five years.

SON shareholders have sustained a -1.8% change in share price over the past year. At present, shares of this midcap stock trade at a price-to-book ratio of 2.1, a price-to-earnings multiple of 14.7, and a price-to-sales multiple of 0.7 (trailing twelve months). Over the past decade shareholders savored a 14.0% average annual return on equity.

Questar Corporation (NYSE:STR) recently traded at $18.88 per share. At this price level, the stock has a 3.4% dividend yield. For 10 out of the past 10 fiscal years, a share of STR paid a total of $4.48 in dividends. Of these dividend payments, a total of $2.50 were paid in the last five years.

STR shareholders have enjoyed a 12.3% growth in share price over the past year. At present, shares of this midcap stock trade at a price-to-book ratio of 3.1, a price-to-earnings multiple of 16.0, and a price-to-sales multiple of 2.8 (trailing twelve months). Over the past decade shareholders savored a 17.6% average annual return on equity.

Who cares if mid caps are not polarizing or catchy enough to gain attention? Many of these stocks are compelling candidates and should be researched further.

Disclaimer: This article was written to provide investor information and education, and should not be construed as a guarantee or investment advice. I have no idea what your individual risk, time-horizon, and tax circumstances are: please seek the personal advice of a financial planner. This article uses third-party data and may contain approximations and errors. Please check estimates and data for yourself before investing. To repeat, this research does not constitute a guarantee.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 6 Overlooked Mid Cap Dividend Stocks With Yields Above 3%